Tax on cryptocurrency Malaysia Part 2

IRB has issued the Guideline on Tax Treatment of Digital Currency Transactions dated 26 August 2022.

Key issues in the guideline include :

Taxability

Crypto transactions fall under the scope of Malaysia income tax if

the key activities and operation business operations are performed in Malaysia or
where there is a business presence in Malaysia

Trading of digital currencies - Profit from the business of trading is taxable .
Mining of digital currencies- Profits from the mining of digital currencies are subject to income tax if the mining activity is carried out with a profit-seeking motive.
Business transactions carried out using digital currency- Record based on the open market value of the underlying goods or services in RM.
Realisation of digital currencies from business transaction- The tax treatment of the subsequent disposal of the digital currency received will depend on the analysis of the capital and revenue (ie badge of trade)
Realisation of digital currencies investment-The tax treatment will depend on the analysis of the capital and revenue (ie badge of trade).
Free distribution- The mere purchase of digital currencies as a result of free distribution/spitting is not taxable.
Exchange of digital currencies -The tax treatment will depend on the analysis of the capital and revenue (ie badge of trade)

https://www.ktp.com.my/blog/tax-on-cryptocurrency-malaysia/05sept2022

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