PUTRAJAYA: The Inland Revenue Board (IRB) 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 Dr. Abu Tariq Jamaluddin said the high frequency of cryptocurrency trading transactions has prompted IRB 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 reporters after presenting certificates to participants of the Tax Corporate Governance (TCG) Programme today.
Recently, IRB launched Ops Token in collaboration with the police and CyberSecurity Malaysia (CSM) to combat tax revenue leakage in cryptocurrency trading, covering 10 locations across the Klang Valley.
Abu Tariq emphasised that individuals engaged in cryptocurrency trading in Malaysia are liable for income tax and those needing clarification on tax matters can reach out to IRB or access the guidelines here: https://phl.hasil.gov.my/pdf/pdfam/GP_LAYANAN_CUKAI_KE_ATAS_TRANSAKSI_MA...
Earlier in his speech, Abu Tariq 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 IRB 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," he said.
IRB introduced TCG on March 1, 2022, as part of its initiative to bolster voluntary compliance efforts, emphasising cooperation between taxpayers and IRB as the national tax authority.
The programme was launched in two phases: a pilot project running from June 1, 2022, to June 30, 2024, followed by full implementation starting July 1 this year. -- Bernama