You already gave the early hint/answer...  

Trading is definitely taxable.

Money changer is trading currency by offering money exchange service, their business is not investing.
So their profit is taxable.

Flipping property actually may be seen as a form of trading as well.
That's why those flip or trade excessive number of property, those profit made may be seen as "trading profit".

If the property trade is treated as trading profit, then RPGT is not applicable.

Generally, investment return is treated as capital gain, and capital gain is not taxable.

But if a person use the investment tool to trade upon to make a living, eg. a broker trade stock in the market to make a living, then it is considered trading profit, and trading profit is taxable.

Imputation dividend (tax credit system) already became a history.
From 2014 onwards, all dividends are single tier (aka tax exemption in the hand of shareholders) as it is already taxed at company level.

so if my wife not working and use my money and generate income from stocks, she has to pay tax?    Then i cannot claim the rm3k wife relief?

Knight_2008 is right. Capital gain is not taxed in Malaysia, except it falls under the ambit of S4 of income tax law definition of income

So be careful. If you are a regular trader, then your idea of "capital gain don't need to pay tax" may be taxed under income tax (being assess under carrying on a business). If you thought your capital gain is not taxable, and use the profit to buy car buy house, then IRM may be triggered and you may be at risk.

However, although this is the tax law, I personally have not seen anybody around me kena income tax as a result of trading stock. Or maybe they never tell me they kena audit

And since we are in this topic, same applies to flipping properties. If your frequencies is high, you will be assessed under income tax instead of RPGT. I remember there was an announcement 1-2 years ago by IRB saying if a person buy and sell 2 properties per year, and/or at consistently interval then you will be assessed under income tax instead of RPGT

As for 1 tier dividend, an investor cannot say they are not taxed. Because the company has paid the tax. The company only declare the net income. So you only get dividend which is already net of tax

Unlike the imputation system, where shareholder re-gross back and claim franking credit, and being assessed again. The end result is similar as 1 tier system. But 1 tier system is a lot more straight forward and save a lot of administration

Agree, as well as Knight_2008.  Capital gain is non taxable.

It depends on your wife whether she is trading the stock typically like constantly with high volume daily/monthly or in other word, trading stock is becoming like her job, or just buy and hold type for investment.

3K relief is for wife not working, if she works as stock trader, then clearly it will be not entitled to claim the relief.

Whilst dividend from stocks is single tier which is tax exempted.

You need to distinguish the difference in term of the income definition.

ini macam, why dont my wife just use my name and account to trade? in that case, i dont have to pay any extra tax on the earning and wife still considered not working and i can claim the rm3k tax rebate rite?

If lhdn define yr stock income as trading...then ?

i am already salaried and paying a hefty income tax

Paying a hefty income tax and capital gain/stock trading is two different matter.

If IRB deem your capital gain as an income then you will be fine plus the tax rate for that year of assessment.

i dont understand this.... since trading is no done full time,

what about if dump money in to asm funds? say rm600k? the interest is stated as tax free but can they say  it is income?

thanks guys

justs for some final clairification

so if my wife spends lavishly, buys bmw, MK, overseas trips mainly europe ... all money given by me, she cannot be inquired by lhdn right? all money i have records and paid tax by me,

well, they can send a letter to your wife to ask for source of 'fund'. once she can prove it, source of fund from you. then they will turn to you to check your income. if your wife shows fund from you 500k, but your income tax form stating 50k a year. good luck.

ok thanks
i can prove my income....