Bitcoin and Tax Implications

Are gains from Bitcoin (and other virtual currencies / cryptocurrencies) taxable? The Inland Revenue Board Malaysia (IRBM) has not issued any guidelines on cryptocurrency and related businesses. However, IRBM has stated that the provisions of the Income Tax Act (ITA) would apply to all cryptocurrency transactions. In the absence of written guidelines from IRBM, let’s explore the issues at hand. IRBM’s stance at the moment According to IRBM, although cryptocurrency businesses are not regulated, the businesses involving cryptocurrency are still subject to Malaysian tax pursuant to S.3 of ITA. Under S.3 of ITA, income accruing or derived from Malaysia shall be subject to tax. As such, cryptocur

Professional Credentials of Our Management Team:

© 2020 by StanleyCo Consulting Sdn. Bhd. (472476-X)