Malaysia’s tax officials play their cards as collectibles turn into money-spinners
Malaysian tax officials are reminding collectors that profits from trading high-value items like trading cards may be subject to income tax. The Inland Revenue Board (LHDN) stated that if a hobby becomes a profit-driven activity, it could be classified as a business transaction under the Income Tax Act. The LHDN will assess such cases using established 'badges of trade' to determine taxability, considering factors like transaction frequency, profit motive, and the holding period. AI
