The Inland Revenue Board (LHDN) of Malaysia has taken significant steps to curb tax revenue leakage resulting from cryptocurrency trading.
In a joint effort with the police and CyberSecurity Malaysia (CSM), LHDN launched “Ops Token,” targeting areas with substantial cryptocurrency trading activities, according to Bernama.
LHDN’s chief executive officer, Datuk Dr. Abu Tariq Jamaluddin, emphasised the importance of addressing tax implications related to cryptocurrency trading.
The surge in cryptocurrency transactions prompted LHDN to review data and identify individuals and companies engaged in this high-frequency trading.
Profits from cryptocurrency trading are taxable, and LHDN aims to ensure compliance by those involved.
The collaborative operation, Ops Token, focuses on ten different locations within the Klang Valley.
The initiative encourages individuals to report their cryptocurrency trading activities, ensuring proper taxation.
If you’re uncertain about your tax obligations, consider reaching out to LHDN for assistance. Additionally, LHDN provides guidelines on digital currency transactions, accessible via this link.
What is cryptocurrency?
Cryptocurrency is essentially decentralised digital money, created for use on the internet. Unlike traditional currency, which is printed and regulated by governments, cryptocurrency is generally not issued or controlled by any central authority or government.
The first cryptocurrency to hit the market was Bitcoin, which was launched in 2008 and continues to be the largest, most influential, and most recognised to date.
Do I need to pay taxes if I own cryptocurrencies?
According to LHDN, purchasing cryptocurrency as an investment and holding it over time, similar to other investments, does not necessitate tax payment.
However, using cryptocurrency for business transactions or engaging in regular trading to generate revenue or income subjects it to taxation.
