Tax on cryptocurrency Malaysia Read the full story in our blog https://lnkd.in/gUtUjK9Q Source IRB Guideline on tax treatment on digital currency transactions @ 26/8/2022 𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru 𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭,𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲) An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients Website www.ktp.com.my Instagram https://bit.ly/3jZuZuI Linkedin https://bit.ly/3sapf4l Telegram http://bit.ly/3ptmlpn 𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲) A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients Website www.thks.com.my Facebook https://bit.ly/3nQ98rs

1. Tax on Crypto
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05/09/22
IRBM
GUIDELINES ON TAX TREATMENT OF DIGITAL
CURRENCY TRANSACTIONS @ 26/8/2022

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Tax on Crypto
The general tax treatment for
transaction gain / loss from the
disposal of digital currencies is
based on whether it is capital or
revenue in nature.

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Tax on Crypto
The badges of trade to determine if
such gains are taxable.

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1. Nature of subject matter
This refers to the nature of the
digital currencies that is being
bought and sold. The digital
currencies could be regarded as the
subject of trading when they are
bought in large quantities

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Tax on Crypto
2. Length of ownership
This refers to the holding period of
the digital currencies.
The shorter the holding period, the
more likely it would be
regarded as held for trading.

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Tax on Crypto
3. Frequency of transactions
High frequency of similar
transactions of digital currencies
is more indicative of trading than an
isolated transaction.

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4. Supplementary work
This refers to additional work done on digital
currencies to make it more marketable or extra
effort made to find or attract purchasers. If this is
done, it is more likely that the subsequent
disposal would be regarded as trading.

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5. Circumstances of the
realization
Some circumstances are less likely to
indicate trading (e.g.
company is forced to sell the digital
currencies due to compulsory acquisition,
sudden urgent need of cash or threat of
foreclosure by creditors).

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6. Motive
This refers to whether there was an intention to trade at
the time of the acquisition of the digital currencies. If a
person undertake the activities in a business-lime
manners such as developing a business plan, preparing
accounting records and advertising the digital currencies
business, the intention is definitely to do a business of
digital currencies.

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7. Mode of financing
This refers to how the purchase of the digital currencies
is being financed. Short term financing is more indicative
of trading than long term financing. The company’s
financial position and ability to hold on to the digital
currencies will also be taken into consideration.
More to come in coming weeks.
Stay tune for the update