KUALA LUMPUR: With the estimated total value of cryptocurrency transactions in Malaysia in 2024 being RM1.441tril, the Inland Revenue Board (LHDN) has conducted a special operation to curb tax leakage.
The board conducted the special operation, dubbed "Ops Token," in collaboration with the police and CyberSecurity Malaysia, in line with the government's desire to reduce tax revenue leakage in cryptocurrency trading and improve the country's tax administration.
In a statement on Saturday (June 15), LHDN said the operation was held simultaneously in 10 different locations around the Klang Valley.
"Through this operation, it was possible to find stored cryptocurrency trading data in mobile devices and computers.
"We have successfully identified the digital assets that are traded, which has caused significant tax revenue leakage.
"The data received will be analysed in detail to obtain the value of the cryptocurrency assets traded and the profit generated from it.
"This will then give us the value of the leakage that was not declared to LHDN," the statement read.
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The board further said the operation found that several companies and partnerships were formed specifically for the purpose of cryptocurrency trade transactions to avoid declaring taxes.
The board's chief executive officer, Datuk Dr Abu Tariq Jamaluddin, was quoted as saying that individuals dealing with cryptocurrency trading in Malaysia were subject to income tax.
"The estimated total value of cryptocurrency transactions in Malaysia this year (2024) is RM1.441tril.
"I advise that anyone who carries out cryptocurrency trading declare their taxes as soon as possible and follow the guidelines provided on digital money transactions.
"The implementation of this operation is expected to increase revenue by reducing leakages and subsequently increasing tax efficiency, which will contribute to the sustainability of national revenue collection," he said.
For further details on cryptocurrency taxes, visit https://phl.hasil.gov.my/pdf/pdfam/GP_LAYANAN_CUKAI_KE_ATAS_TRANSAKSI_MATA_WANG_DIGITAL.pdf.
