PUTRAJAYA: The Inland Revenue Board has identified several individuals and companies engaged in cryptocurrency trading to curb tax revenue leakage and enhance national tax administration.
Its chief executive officer, Datuk Dr Abu Tariq Jamaluddin, said the high frequency of cryptocurrency trading transactions had prompted the revenue board to review data for potential tax implications.
"We understand that if there are a lot of transactions, profits from cryptocurrency trading are taxable.
"Individuals engaged in high-volume transactions are not reporting these activities to us," he told reporters after presenting certificates to participants of the Tax Corporate Governance (TCG) Programme on Wednesday (June 19).
Recently, LHDN launched Ops Token in collaboration with the police and CyberSecurity Malaysia (CSM) to combat tax revenue leakage in cryptocurrency trading. The initiative covers 10 locations across the Klang Valley.
Abu Tariq emphasised that individuals engaged in cryptocurrency trading in Malaysia are liable for income tax, and those needing clarification on tax matters can reach out to the revenue board or access the guidelines here: https://phl.hasil.gov.my/pdf/pdfam/GP_LAYANAN_CUKAI_KE_ATAS_TRANSAKSI_MATA_WANG_DIGITAL.pdf.
Earlier in his speech, Abu Tariq said, "Through TCG, organisations can deepen their comprehension of tax regulations related to business activities and fortify their internal systems for sustained tax compliance.”
The revenue board introduced TCG on March 1, 2022, to bolster voluntary compliance efforts and emphasise cooperation between taxpayers and the board as the national tax authority.
The program was launched in two phases: a pilot project running from June 1, 2022, to June 30, 2024, followed by full implementation starting July 1 this year. – Bernama
