Malaysia is essentially a crypto tax free country owing to no capital gain taxes and only income tax for those who are identified as day traders or receive their salary in crypto. While the monetary authorities are looking to introduce properly laid out regulations for crypto taxation, due to no capital gains tax, the taxes might not increase significantly.
Do you have to pay crypto tax in Malaysia?
You only have to pay taxes on crypto in Malaysia if you identify as a professional day time trader or receive your salary in the form of crypto.
When do you have to pay tax on crypto in Malaysia?
If you are gaining through professionally trading or receiving your salary in crypto, then you need to pay crypto taxes in Malaysia.
What crypto transactions are taxable in Malaysia?
Crypto trading is taxable in Malaysia.
What are the Crypto Tax Rates in Malaysia?
| Taxable income (MYR*) | Tax on excess (%) | |
| Over | Not over | |
| 5,000 | 20,000 | 1 |
| 20,000 | 35,000 | 3 |
| 35,000 | 50,000 | 8 |
| 50,000 | 70,000 | 13 |
| 70,000 | 100,000 | 21 |
| 100,000 | 250,000 | 24 |
| 250,000 | 400,000 | 24.5 |
| 400,000 | 600,000 | 25 |
| 600,000 | 1,000,000 | 26 |
| 1,000,000 | 2,000,000 | 28 |
| 2,000,000 | 30 | |
Malaysia Income Tax Brackets (2023)
| Taxable income (MYR*) | Tax on excess (%) | |
| Over | Not over | |
| 5,000 | 20,000 | 1 |
| 20,000 | 35,000 | 3 |
| 35,000 | 50,000 | 8 |
| 50,000 | 70,000 | 13 |
| 70,000 | 100,000 | 21 |
| 100,000 | 250,000 | 24 |
| 250,000 | 400,000 | 24.5 |
| 400,000 | 600,000 | 25 |
| 600,000 | 1,000,000 | 26 |
| 1,000,000 | 2,000,000 | 28 |
| 2,000,000 | 30 | |
Malaysia Capital Gain Tax Rates (2023)
There are no capital gain tax rates in Malaysia.
How is Tax Calculated on Cryptocurrency in Malaysia?
Crypto is taxed as “any other income” in case you are a professional trader. In such a case, any gains you make on trading are subject to ordinary income tax rates mentioned above.
If you are receiving your salary or wages in the form of crypto, then it is taxed at the value you received.
Is there any Crypto Tax Free in Malaysia?
Most transactions involving crypto are tax free in Malaysia.
Crypto Tax in Malaysia – FAQs
Do you have to pay tax when you buy crypto in Malaysia?
No, you don’t have to pay tax when buying crypto in Malaysia.
Do you have to pay tax when you sell crypto in Malaysia?
As an occasional trader, no, selling crypto is not taxable.
Do you have to pay tax when transferring crypto in Malaysia?
No, transferring crypto is not subject to taxes.
Do you have to pay tax when spending crypto in Malaysia?
No, you don’t have to pay tax when spending crypto in Malaysia.
Is swapping crypto taxable?
No, swapping crypto is not taxable.
How much tax on crypto gains in Malaysia?
| Taxable income (MYR*) | Tax on excess (%) | |
| Over | Not over | |
| 5,000 | 20,000 | 1 |
| 20,000 | 35,000 | 3 |
| 35,000 | 50,000 | 8 |
| 50,000 | 70,000 | 13 |
| 70,000 | 100,000 | 21 |
| 100,000 | 250,000 | 24 |
| 250,000 | 400,000 | 24.5 |
| 400,000 | 600,000 | 25 |
| 600,000 | 1,000,000 | 26 |
| 1,000,000 | 2,000,000 | 28 |
| 2,000,000 | 30 | |
How do I avoid capital gains tax on crypto Malaysia?
There is no capital gains tax in Malaysia.
Market Research Intern, Octaloop
Maitreyee takes a keen interest in financial technologies and their potential to transform lives at the grassroots. Put together with her penchant for Economic Research, she brings tonnes of academic and actionable insight into our products. Maitreyee is contributing at Binamite as a Market Research Intern, and when she's not doing that, you can find her exploring the city or buried in a book.