The Crypto World in Kuala Lumpur: Malaysia's Crypto Assets Taxation and Regulatory System1. Overview of Malaysia's Basic Tax System
1.1 Malaysia Taxation System
In Malaysia, the types of taxes are divided into direct taxes and indirect taxes. Direct taxes include: income tax, real property gains tax, and petroleum income tax, etc.; indirect taxes include: domestic tax, customs duties, import and export taxes, sales tax, service tax, and stamp duty, etc. At the same time, the Malaysian federal government and local governments implement a tax-sharing system, where the federal government manages national taxation and is responsible for formulating tax policies, which are executed by the Inland Revenue Board and the Royal Customs Department. The Inland Revenue Board is mainly responsible for direct taxes, such as income tax and petroleum tax; while the Royal Customs Department is responsible for indirect taxes, including domestic tax, customs duties, import and export taxes, sales tax, service tax, and stamp duty, etc. State governments levy land tax, mineral tax, forest tax, license tax, entertainment tax, hotel tax, and house number tax, etc.
1.2 Main Types of Taxes
1.2.1 Corporate Income Tax
In Malaysia
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