Capital Gains Tax On Cryptocurrency?
26 Nov 2020 — From the latest report by Arjuna Chandran Shankar in The Edge Markets, CEO of the Inland Revenue Board, Datuk Seri Sabin Samitah commented that the Malaysia government should look at implementing the capital gains tax.
He added that capital gains tax is important when it comes to taxation on cryptocurrency, intangible and other digital assets in the future and if left untaxed, it will encourage aggressive tax planning and evasion.
Although cryptocurrency is not legal tender in Malaysia, during the virtual SCxSC Fintech Conference 2020, the chairman of the Securities Commission Malaysia Shariah Advisory Council, Dr. Daud Bakar said “It (cryptocurrency) is a medium of exchange, and we cannot stop people from using commodities as a medium of exchange.”
Similar to neighbouring Singapore, there are no capital gains tax in Malaysia and for now, cryptocurrencies and their transactions are tax-free in Malaysia.
While it’s debatable whether capital gains tax policy actually increases economic efficiency, one thing’s for certain that taxation on #cryptocurrency and #digitalassets without clear regulation and proper study undertaken will make entrepreneurs and investors steer clear of the jurisdiction and hamper the growth of the crypto industry within the country.