PUTRAJAYA, June 19 — The Inland Revenue Board (LHDN) has identified several individuals and companies engaged in cryptocurrency trading as part of efforts to curb tax revenue leakage and enhance national tax administration
Its chief executive officer Datuk Abu Tariq Jamaluddin said the high frequency of cryptocurrency trading transactions has prompted the board to review data for potential tax implications.
"We understand that if there are a lot of transactions, profits from cryptocurrency trading are taxable.
"Individuals engaged in high-volume transactions are not reporting these activities to us," he told the press after presenting certificates to participants of the Tax Corporate Governance (TCG) Programme today.
Recently, LHDN launched Ops Token in collaboration with the police and CyberSecurity Malaysia (CSM) to combat tax revenue leakage in cryptocurrency trading. The initiative covers 10 locations across the Klang Valley.
Abu Tariq added that individuals engaged in cryptocurrency trading in Malaysia are liable for income tax, and those needing clarification on tax matters can reach out to LHDN or access the guidelines on its website.
Earlier in his speech, he highlighted that the TCG programme aims to provide a comprehensive understanding of taxpayer management, tax administration procedures, and tax risk management.
It also aims to foster a collaborative relationship between taxpayers and LHDN to resolve tax matters through consultation rather than confrontation.
"Through TCG, organisations can deepen their comprehension of tax regulations related to business activities and fortify their internal systems for sustained tax compliance," Abu Tariq said.
LHDN introduced TCG on March 1, 2022, as part of its initiative to bolster voluntary compliance efforts. This initiative emphasises cooperation between taxpayers and LHDN as the national tax authority.
The programme was launched in two phases: a pilot project from June 1, 2022, to June 30 this year, followed by full implementation starting July 1.
— Bernama
