Tax implications of cryptocurrency in Malaysia
Cryptocurrency such as Bitcoin, Ethereum, XRP, LTC, Dash, ETC and more has caught the attention of the Inland Revenue Board Malaysia (IRBM) in determining INCOME in accordance with the Income Tax Act 1965. Reported by TheEdge in its Market section on 13 January 2018 is that the IRB has made an inquiry with the BitX Malaysia on its customer that deal with these currencies to provide information’s on deposits, withdrawal, and transaction. As at to date there is no guideline been issued by the IRBM on the cryptocurrency activities.
Royal Malaysian Customs Department (RMCD) is also looking into it in trying to determining whether the transaction caught the GST Act.
According to Malaysian Tax Tracker, Wolters Kluwer, mention that In the US, the cryptocurrencies are treated as property for tax purposes and are subject to capital gains tax. In Australia, digital currencies are only recognized for GST purposes if the supply is made in exchange for money or digital currencies but no tax is enforced for supplies and acquisitions of digital currencies. In Singapore, cryptocurrencies are recognized as a service. So, businesses that accept virtual currencies as payment should record the sale based on the open market value of the goods or services in Singapore dollars and is subject to GST.