Guides
Digital currency and crypto tax in Malaysia: HASiL guidelines
Updated: 8 November 2026 Independently fact-checked.
Basis document: the Second Edition Guideline
The tax treatment of digital currency in Malaysia follows the Guideline on the Tax Treatment of Digital Currency Transactions — Second Edition, published on 5 December 2025 by HASiL and replacing the First Edition (26 August 2022), following recent legislative amendments under the Income Tax Act 1967 (ITA). This guideline is published under s.134A ITA. (Source: Second Edition Guideline, §1.1–1.2.)
Who is covered?
The Guideline applies to any person who acquires or disposes of digital currency and is involved in a digital-currency business — such as trading, mining and digital-currency exchange. (Source: Guideline, §1.4.)
What is digital currency / digital token?
For the purposes of the Guideline, digital currency and digital tokens refer to digital financial assets based on distributed ledger technology (DLT) with digital representation value secured cryptographically, or contractual rights that can be transferred, stored or traded electronically. Examples: Bitcoin, Ethereum (Ether) or other digital currencies. (Source: Guideline, §1.5–1.6.)
When is it taxed?
The general principle of chargeability under s.3 ITA: income accruing in or derived from Malaysia, or received in Malaysia from outside Malaysia, is subject to tax. Digital-currency transactions are taxed if the principal activity/operations of the business are carried on in Malaysia or the business is in Malaysia — subject to the facts and circumstances. (Source: Guideline, §3.1; ITA 1967.)
Your tax status depends on your intention and activity — not solely on the type of asset.
Digital-currency trading and business
Income or losses from digital-currency trading activities may be taxed / deductions allowed under existing provisions (s.4(a) ITA for business income; deductions under s.33(1)). (Source: Guideline, §3.2.1.)
Mining
Mining activities are subject to income tax under existing statutory provisions, and expenses related to the mining business are deductible. (Source: Guideline, §3.2.1.)
Payment in lieu of goods/services
If you receive digital currency as payment for services, its value is recognised as income at market value at the time of payment. Expense deductions under s.33(1) are allowed. Official example in the Guideline: 10 Ether × RM18,970 = RM189,700. (Source: Guideline, §3.2.1, Example.)
Employment
Salaries paid in digital currency are taxed as employment income (s.4(b)/s.13 ITA). (Source: Guideline, §3.2.1, Example of Patrick Wong.)
Investment: realised holdings
The mere disposal of digital currency held as an investment is treated as a realisation of an investment — income received is not subject to tax, and related expenses are not allowed as deductions. However, a payment may be subject to tax if HASiL (KPHDN) finds that the intention of the purchase is related to trading or another income-producing purpose. (Source: Guideline, §3.2.2.)
Free tokens (airdrop/hardfork): tokens received for free (promotional/marketing/split) are not treated as income at the time of receipt. (Source: Guideline, §3.2.2.)
Acquisition cost, worthless tokens and records
- Acquisition cost of digital currency (cost determination method, market value, criteria) — this item still awaits official confirmation from HASiL — check again with HASiL before deciding. Full details of §4 of the Guideline have not been fully extracted at this review; verify against the Guideline PDF before writing cost formulas.
- Digital currency with no value (§5) — this item still awaits official confirmation from HASiL — check again with HASiL before deciding.
- Record keeping (§6): record retention period of 7 years referring to s.82 ITA, and specific supporting documents — this item still awaits official confirmation from HASiL — check again with HASiL before deciding. Verify from the Guideline PDF.
Interaction with capital gains tax (CKM)
The interaction of digital-asset treatment with CKM (s.4(aa) ITA) and the treatment of foreign-source capital gains (referred to in the Guideline) — this item still awaits official confirmation from HASiL — check again with HASiL before deciding. Verify before writing. The statutory definition of "digital asset" in s.2 ITA has also not been verified — do not state a statutory definition without confirming the latest ITA amendments.
Frequently Asked Questions (FAQ)
Q. Do I need to pay tax when selling crypto I hold? A. It depends on your intention and activity. If you trade actively, the income is subject to tax as business income. If you merely realise an investment holding, the income is not taxed — but HASiL may re-assess your purchase intention.
Q. What if I receive payment in crypto for my services? A. Its value is recognised as income at market value at the time of payment (e.g., official: 10 Ether × RM18,970 = RM189,700). Related expenses are deductible under s.33(1).
Q. Is crypto mining taxed? A. Yes — mining activities are subject to income tax, and expenses related to the mining business are deductible.
Q. My salary is paid in digital currency. How is it treated? A. It is taxed as employment income (s.4(b)/s.13 ITA).
Q. I received free tokens (airdrop). Do I need to report them? A. Tokens received for free (promotional/marketing/split) are not treated as income at the time of receipt. Treatment on later disposal depends on your intention and activity.
Q. How long must I keep records? A. The period is 7 years referring to s.82 ITA — full details of records to be kept this item still awaits official confirmation from HASiL — check again with HASiL before deciding.
Official sources
All sources below were reviewed on 8 November 2026. Official HASiL pages and documents: