IRB identifying individuals and companies involved in cryptocurrency trading for taxation purposes

Inland Revenue Board logo. Photo courtesy of TVS.

By DayakDaily Team

KUCHING, June 19: The Inland Revenue Board (IRB) has identified several individuals and companies trading in cryptocurrencies to reduce the leakage of tax revenue and to improve the country’s tax administration.

In a news report by TVS today, IRB Chief Executive Officer Datuk Dr Abu Tariq Jamaluddin said his party found the frequency of cryptocurrency trading transactions to be high, and IRB is now in the process of reviewing the data to determine whether there is a taxation issue or not.

“We know that if the volume of transactions is high, any crypto profits are also subject to tax.

“They carry out these activities in a high amount (frequency of transactions) and do not make any reports to us,” he told reporters after presenting Corporate Tax Governance Programme (TCG) participation certificates here today.

He added that in a recent report during a special IRB compliance operation, Ops Token was held to reduce the leakage of tax revenue in cryptocurrency trading. The operation was held in collaboration with the Royal Malaysian Police and CyberSecurity Malaysia (CSM) in 10 different locations around the Klang Valley simultaneously.

Abu Tariq said any individual involved in cryptocurrency trading in the country is subject to income tax in Malaysia and those who are unsure about the taxation system can contact the IRB or refer to the established guidelines.

The information related to the Guidelines for the Treatment of Taxes on Digital Currency Transactions can be downloaded, via quick access: https://phl.hasil.gov.my/pdf/pdfam/GP_LAYANAN_CUKAI_KE_ATAS_TRANSAKSI_MATA_WANG_DIGITAL.pdf.

Earlier in his speech, he said the TCG programme provides a broader understanding of managing the taxpayers’ organisation, taxation governance procedures, and taxation risk control.

He added TCG is to improve the relationship between taxpayers and IRB to enable taxation issues to be resolved through consultation rather than confrontation.

“Through TCG, an organisation can improve their understanding of tax regulations related to business activities and strengthen the company’s internal systems to ensure continuous tax compliance,” he said.

The IRB launched the TCG on March 1, 2022, as one of the initiatives to empower voluntary compliance activities with a focus on full cooperation between taxpayers and the IRB as the country’s tax administrator.

The programme involves two main phases, namely a pilot project that runs from June 1, 2022, until June 30, 2024, followed by the full implementation of TCG from July 1. — DayakDaily