Digital Currency Taxation in Malaysia

This article examines the taxation of digital assets in Malaysia under the Income Tax Act 1967, clarifying that while cryptocurrencies are not recognized as legal tender, transactions involving them may still attract tax obligations. It details the distinction between revenue assets, which are subject to income tax, and capital assets, which are currently exempt from Capital Gains Tax (CGT), while providing guidance on valuation methods like FIFO and the critical importance of maintaining comprehensive records for audit readiness.