I'm not sure if posting in this section is appropriate. Please correct me if I'm wrong.

1. If we make money through stock market trading (SMT), do we still have to pay income tax? Not so clear in the Financial Budget for 2024...

2. I've heard that the "frequency of trading" is the point. However, I'm having trouble finding its specific rules. How do we assess? (Assume that I buy and sell in a span of two days, one week, sometimes longer than a month.)

3. Can we include other costs like water and electricity bills, computer maintenance, hardware purchases, and so on? I didnt registeringmy in SSM, but under my own name only.

4. Should I use the Borang B or BE when e-filing? (Because I make my own money)

Thanks in advance for the helps!

Since when are we taxed on Stock market trading on personnel level, I think you are confused with the January 2024 capital tax gains on companies trading shares amongst themselves. Not for individual traders.

Regards

If your monthly Bursa statement indicates you are a day-trading, LHDN will audit you.

Day traders are typically buy and sell stocks everyday

Honestly has anyone make shit tonnes of money day trading in bursa to get irb to motice?

99.999% day traders lose money (both amateurs nor pro)

Day Traders = Gamblers/Speculators (victims of big sharks)

Some will "whistle-blow" to LHDN

This post has been edited by ronnie: May 15 2024, 07:22 AM

Full time Active trader are require to declare. But I doubt most will make money. Maybe 1 year win, 2nd 3rd year loss. Because its a personal taxation, losses can't bring forward to next year.

This post has been edited by Singh_Kalan: May 15 2024, 10:03 AM

As long as we EARN profit on any legal channel ("gains or profits not falling under any of the foregoing classes"), we have to pay tax.
Either individual or company.

You are right. It's too ambiguous, not much information after surfing online.

They intentionally leave it ambiguous. From what i have gathered, they will look at trade frequency, whether you have a busy day job and income from stocks relative to your day job etc, to determine whether your stock return is considered taxable income or capital returns. It also applies to property investment / flipping. If you buy and sell properties frequently, even if u have held it for more than 5 years (to get zero RPGT), they can still consider the capital return as taxable income.

is that true.... no pay RPGT, still consider taxable ? on the profit ?

Yes, the capital gain is considered income as he bought and sold too many properties too often.

Determining the existence of trade - page 13 Appendix

s33(1) ... by deducting ... all outgoings and expenses wholly and exclusively incurred ... in the production of gross income
wholly and exclusive means 100% for business, good luck with apportionment basis

BE: individual - not carrying on business
B: individual - carrying on business
not sure what do u mean by personal taxation
4(a) business losses can be carried forward regardless of your identity
not quite right, because illegal gains will still be subjected to income tax
when u transact frequently with other factors which suggest that u r carrying on a business, the gain shall be subjected to income tax instead of real property gain tax, so 0% RPGT rate would be irrelevant
it is a question of fact - capital gain vs trade income