On 26 August 2022, the Inland Revenue Board of Malaysia (IRBM) has published guidance on income tax treatment in respect of e-CT which includes general tax treatment of digital currencies or digital tokens. The Guidelines applies to any person that acquire or dispose digital currencies as well as involve in business of digital currencies such as trading, mining and exchanges of digital currencies.
In general, the taxability of digital currency transactions in Malaysia is based on Section 3 of the ITA 1967 where income of any person accruing in or derived from Malaysia or received in Malaysia from outside Malaysia is taxable.
For the purpose of this Guidelines, digital currencies and digital token refers to digital financial assets that are based on distributed ledger technology (DLT) and cryptographically secured digital representations of value or contractual rights that can be electronically transferred, stored or traded.
