8 Jun - 2 min read
Cryptocurrency exchange Tokenize Technology has announced that it will begin charging sales and services tax (SST) on the trading fees of its platform. The implementation of the 6% SST is set to begin from 14 June 2021.
According to Tokenize’s announcement post on Facebook, this move is in line with the Service Tax (Digital Services) Regulations (2020) and the Amended (Amendment 2/2020) – Service Tax (Digital Services) Regulations (2020).
“As of now, Tokenizers enjoy a Maker’s fee of 0% and a Taker’s fee of 0.8%. The introduction of the SST means there will be an additional charge of 6% on top of the Taker’s fee of 0.8%,” Tokenize also explained in the post.
To better illustrate this update, the cryptocurrency exchange also shared an FAQ that provides detailed examples on how the implementation of the SST will affect traders who are buying or selling cryptocurrencies on the platform. For instance, those who place a Buy order worth RM10,000 will be subjected to an existing trading fee of 0.8%, which is equivalent to RM80. Starting from 14 June, there will be an additional 6% SST charge levied on the trading fee, which is RM4.80. This brings the total payable amount to RM10,084.80 (RM10,000 + RM80 + RM4.80).
Similarly, traders selling an order worth RM10,000 will see a same amount deducted from their earnings, bringing the total receivable amount to RM9,915.20 (RM10,000 – RM80 – RM4.80). “If the order is filled as a Maker, the trading fee and SST will be immediately refunded back into his account,” Tokenize clarified as well.
At present, Tokenize is the first Securities Commission-approved cryptocurrency exchange – out of the three recognised market operators (RMO) in Malaysia – to announce the implementation of the SST on its trading fees. The two remaining RMOs (Luno and SINEGY Technologies) have yet to include such fees, but most traders expect both to follow in the footsteps of Tokenize soon. This comes following the Malaysian government’s growing recognition of cryptocurrencies as a digital asset, which brings about income tax and SST repercussions.
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