CGS-CIMB is taking a positive view of the tax exemption on foreign-sourced dividends for corporations as it would reduce the earnings risks for companies with large overseas investments.

In a note, the firm said that it had been concerned about the government’s earlier decision to withdraw the tax exemption on foreign-source income (FSI) for corporations in Budget 2022, as the change will permanently affect future income streams from overseas investments.

“This is positive for...