Tax in Cryptocurrency

We can all agree that COVID-19 has wreaked havoc on businesses and the global economy, making 2020 and 2021 extremely difficult. However, for some people, the difficult time presented an unexpected opening. The investing industry is a prime illustration of this.

In addition to all of these, during the pandemic years, cryptocurrency reached the pinnacle of its global appeal, including in Malaysia. An increasing number of local crypto investors are uncertain as to whether their digital assets are subject to any kind of tax as a result of this trend.

However, the public will now have a better grasp of the tax treatment of cryptocurrency thanks to the recent publishing of the Guidelines on Tax Treatment of Digital Currency Transactions. We’ll highlight a few of the document’s most important passages that concern investors like you in this section.

According to the document, cryptocurrency will only be subject to taxation if it is used in business or trading transactions, if the business’s primary activities and operations are carried out in Malaysia, or if the business has a presence in Malaysia. Additionally, it contained the following:

As Malaysia does not tax capital gain, only revenue gains arising from the disposal of digital currency is taxable.

A person who trade digital currencies actively may be viewed as generating revenue from the activity, thus gains from this digital currencies trading is taxable. On the other hand, gains derived by individual who trade occasionally may be viewed as capital gains and not taxable in Malaysia.


To be clear, capital gains are earnings you receive from investments. In other words, you won’t have to pay tax if you buy cryptocurrency as an investment and hold on to it for a while, just like you would with traditional financial vehicles. However, it will be taxable if you incorporate cryptocurrency into your business dealings or engage in frequent trading to generate income.

If you are interested to have a business consultation for your company, feel free to get in touch with us through email at

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Crypto Tax In Malaysia: What You Need To Know,digital%20currencies%20trading%20is%20taxable

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