Overview of Malaysia's Crypto Assets Taxation and Regulatory Framework
1. Introduction to the Malaysian Tax System
The tax system in Malaysia consists of direct taxes and indirect taxes. Direct taxes include income tax, real estate gains tax, and petroleum income tax; indirect taxes cover domestic taxes, customs duties, import and export taxes, sales tax, service tax, and stamp duty. The country implements a federal and local tax sharing system, with the federal government responsible for formulating national tax policies, executed by the Inland Revenue Board and the Royal Customs Department. The Inland Revenue Board oversees direct tax matters, while the Royal Customs Department is responsible for indirect taxes. The taxes collected by state governments include land tax, mineral tax, forest tax, and other local taxes.
Overview of Main Tax Types
1. Corporate Income Tax:
- Local companies with paid-up capital not exceeding 2.5 million MYR will adopt a progressive tax rate ranging from 15% to 24%.
- Local companies and foreign companies with paid-in capital exceeding 2.5 million MYR, unified tax