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Forex trading is illegal in India? 29 replies

Forex trading in Malaysia 1 reply

Forex trading illegal in Malaysia? 0 replies

will forex trading be illegal? 6 replies

Attachments: Malaysia central bank states Forex is illegal
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Malaysia central bank states Forex is illegal

Manstir & Fellow M'sians

Many comments being made but I am hoping to find a solid / correct source about whether or not to pay tax for the income-profit generated from forex, until the "letter" posted here. Can you provide the contact info (email/tel) or whereabout of this officer Nazri? Thanks for your time.

Cheers



Quoting Manstir
no tax for FOREX or stockexchange outside malaysia, here is LHDN's staff reply me in email

[php]Tuan,

Emel tuan adalah dirujuk.

Harap maklum bahawa mulai tahun 2004, pendapatan yang diperolehi dari
punca luar negara dan di bawa masuk ke Malaysia adalah tidak dikenakan
cukai kecuali pendapatan syarikat Malaysia dari
perniagaan perbankan, insuran dan pengangkutan udara dan laut.

Pengecualian ini telah ditetapkan di bawah perenggan 28, Jadual 6 Akta Cukai Pendapatan 1967.

Sekian, harap maklum.

"BERSAMA MEMBANGUN NEGARA"

NADZRI...
Trade As A Sniper
Quoting pama.fx
Manstir & Fellow M'sians

Many comments being made but I am hoping to find a solid / correct source about whether or not to pay tax for the income-profit generated from forex, until the "letter" posted here. Can you provide the contact info (email/tel) or whereabout of this officer Nazri? Thanks for your time.

Cheers
Why don't you try the LHDN helpdesk number (which should be on LHDN's website) and look for this guy? It seems his section is called "Pusat Khidmat Pelanggan" which means "Customer Service Centre". Beware though, I would hardly call a customer service call centre personnel as a "solid" source.

The key phrase you need to check is the phrase "punca luar negara", which in the statutes is known as "foreign source income."

From the tax agents I have consulted with and also from LHDN officers themselves (NOT the helpdesk personnel), "foreign source income" does not mean what most of you probably PRAY that it means.

My prior comments on this "foreign source income" issue is stated here.
I'm not trying to convince anyone. I'm not in the "convincing" business.
Quoting pama.fx
Manstir & Fellow M'sians

Many comments being made but I am hoping to find a solid / correct source about whether or not to pay tax for the income-profit generated from forex, until the "letter" posted here. Can you provide the contact info (email/tel) or whereabout of this officer Nazri? Thanks for your time.

Cheers
I think i already deleted that email, like what skaenobi said.. U need to meet (face2face) LHDN officers for further details.
Quoting skenobi
The correct way to state it is, "you'll need to declare the profits as income in the current year of tax assessment." You don't "declare it as income tax."

That "income" is, at that point, only potentially taxable.
Yup, that is right :-D
Hi to all,

Currently I want to TT to Oanda in Singapore. Public bank says I have to declare the TT transaction purpose. Can anyone help shed some light on how to declare or what to write? It is my first time on this, any help would be appreciated! Thanks!!

Happy Holiday!
Quoting hong1204
Hi to all,

Currently I want to TT to Oanda in Singapore. Public bank says I have to declare the TT transaction purpose. Can anyone help shed some light on how to declare or what to write? It is my first time on this, any help would be appreciated! Thanks!!

Happy Holiday!
My guess would be "Other Investments". I wouldn't know. I never had to answer such questions as my amounts have never crossed the minimum required threshold for declaring.

Please Google "BNM purpose codes"
I'm not trying to convince anyone. I'm not in the "convincing" business.
Quoting Greenmoney21
Hi,

Bank Negara Malaysia, just posted on their website saying that, those who trade currency from Malaysia its consider illegal.

http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=1976

Any comments guys?

I've been trading Forex as well, now with these kind of regulation, making me a little worried...
The dominant religion in Malaysia is Islam.
To do anything there must be like walking into stupid town.
Quoting skenobi
My guess would be "Other Investments". I wouldn't know. I never had to answer such questions as my amounts have never crossed the minimum required threshold for declaring.

Please Google "BNM purpose codes"
Hi Skenobi

What is the minimum required amount before declaring (for FX)?

Cheers
Trade As A Sniper
Quoting pama.fx
Hi Skenobi

What is the minimum required amount before declaring (for FX)?

Cheers
Google BNM "form R" " form P"
I'm not trying to convince anyone. I'm not in the "convincing" business.
http://forexmagnates.com/indian-cent...or-debit-card/

Would be an interesting development if BNM were to follow suit. It appears RBI's measures only affect traders who fund their accounts (only) via credit cards and ONLINE bank transfers...
I'm not trying to convince anyone. I'm not in the "convincing" business.
Btw, Dukascopy is opening a bank and forex branch in Kuala Lumpur. I've spoke to Customer Service, they confirmed it but did not provide dates. Here is the website, http://www.dukascopy.com/swiss/engli...offices/#Kuala
Quoting victoryong
Btw, Dukascopy is opening a bank and forex branch in Kuala Lumpur. I've spoke to Customer Service, they confirmed it but did not provide dates. Here is the website, http://www.dukascopy.com/swiss/engli...offices/#Kuala
Quoting skenobi
http://forexmagnates.com/indian-cent...or-debit-card/ Would be an interesting development if BNM were to follow suit. It appears RBI's measures only affect traders who fund their accounts (only) via credit cards and ONLINE bank transfers...
Indian management(rbi) is the most corrupted management in the world , i know this because i'm an indian myself.
I know how these people work .Corruption happens all over the world but i don't think that we as a Malaysian are corrupted to that extreme level. Those politician don't know who to blame that is why they came up with these stupid rules .
I would like to request FF to change the title of this forum as this case is closed in Malaysia some time ago but i see that we are still talking about it until now.

Pls change the title or close this forum , OR come up with a new title so that we Malaysian can trade peacefully.
Enter Signature
I am probably too late getting into the discussion. I have two questions.

Question 1:
If I form a company which only trade Forex, will it be legal according to Malaysian law? I am asking this because there are numerous issues regarding trading Forex for retail traders. So, I am curious if you are a company which trades Forex, paying all the taxes, is it legal and safe?


Question 2:
Assuming that I am a retail trader. I open up an account in Singapore, depositing and withdrawing money from and to the broker and the Singapore bank. Then every month I transfer the money back to Malaysia. If BNM asks, I would say I trade Forex in Singapore. Is this a good solution to these confusion of whether Forex is legal or illegal in Malaysia.
Question 1
A company that trade Forex in Malaysia will need license from BNM. Only the banks/investment banks are given the license at the moment. You can give BNM a call and ask.

Question 2
As long as the conversion and transfer of money is done via legal means, its not a problem. My understanding of the situation for retail forex trader is this,

  1. As long as retail investor do not manage money from others. You'll need license to do this, only the banks/investment banks are given license.
  2. As citizen of Malaysia, you are not allowed to transfer money out of the country for others. Only license financial institution can do this in Malaysia.
  3. This happen many times before, many open training company and give forex training/workshop but over time they end up managing others money to invest in forex. BNM will raid you and charge you not for training or your own investment in forex, but will charge you because you manage money of others in forex investment. Related to Item 1.


So far the government has not taken any legal action against retail investor except for those (1) training company that do not have license to manage investment of others (you need license that they won't provide), (2) company masking as brokerage in malaysia without license, (3) and retail investors that manages money for others, for this retail investor are usually charge of cheating people and operating forex service without license.


Quoting superblack
I am probably too late getting into the discussion. I have two questions. Question 1: If I form a company which only trade Forex, will it be legal according to Malaysian law? I am asking this because there are numerous issues regarding trading Forex for retail traders. So, I am curious if you are a company which trades Forex, paying all the taxes, is it legal and safe? Question 2: Assuming that I am a retail trader. I open up an account in Singapore, depositing and withdrawing money from and to the broker and the Singapore bank. Then every month...
Quoting superblack
I am probably too late getting into the discussion. I have two questions. Question 1: If I form a company which only trade Forex, will it be legal according to Malaysian law? I am asking this because there are numerous issues regarding trading Forex for retail traders. So, I am curious if you are a company which trades Forex, paying all the taxes, is it legal and safe?
What is the benefit of forming a company vs the disadvantages of trading quietly for yourself?

Anyways, if a "family office"-type company is formed (please Google "family office") whose only business is to trade forex for itself and NOT based on investor deposits, I don't see how that would be illegal, but you would be treading on VERY thin ice with that issue in Malaysia.

Why declare yourself as a company when you can trade quietly for yourself AND use creative ways to legally AVOID (not illegally EVADE) paying taxes?

Please read this thread from start to finish to get some color on the whole issue.

Quoting superblack
Question 2: Assuming that I am a retail trader. I open up an account in Singapore, depositing and withdrawing money from and to the broker and the Singapore bank. Then every month I transfer the money back to Malaysia. If BNM asks, I would say I trade Forex in Singapore. Is this a good solution to these confusion of whether Forex is legal or illegal in Malaysia.
BNM will not be the one asking the question. The Malaysian bank receiving the transfer will, and even then only if the transfer is above a certain limit where you are obliged to declare. Below that limit, you should be able to transfer how ever much and as many times as you want.

Looks like you STILL don't know if forex is legal or illegal in Malaysia.

Again, Please read this thread from start to finish to get some color on the whole issue.
I'm not trying to convince anyone. I'm not in the "convincing" business.
Quoting victoryong
Question 1 A company that trade Forex in Malaysia will need license from BNM. Only the banks/investment banks are given the license at the moment. You can give BNM a call and ask.
Let's get this one thing straight once and for all. NO deposit-taking or investment-receiving COMPANY (other than Banks incorporated in Malaysia) will EVER be given a license by any Malaysian financial authority to trade forex in Malaysia now or at any time in the foreseeable future.

No need to waste time calling BNM helpdesks (who only have one vague answer to give to all callers, reading entirely from a script). Just make a cup of coffee, sit quietly down, and read this thread from start to finish.

Quoting victoryong
Question 2 As long as the conversion and transfer of money is done via legal means, its not a problem. My understanding of the situation for retail forex trader is this, As long as retail investor do not manage money from others. You'll need license to do this, only the banks/investment banks are given license. As citizen of Malaysia, you are not allowed to transfer money out of the country for others. Only license financial institution can do this in Malaysia. This happen many times before, many open training company and give forex training/workshop...
The sentiment above is largely correct. But again, advisable to read the thread to get more color.
I'm not trying to convince anyone. I'm not in the "convincing" business.
Thanks! Will check it out, definitely a good alternative!


Quoting skenobi
{quote} What is the benefit of forming a company vs the disadvantages of trading quietly for yourself? Anyways, if a "family office"-type company is formed (please Google "family office") whose only business is to trade forex for itself and NOT based on investor deposits, I don't see how that would be illegal, but you would be treading on VERY thin ice with that issue in Malaysia. Why declare yourself as a company when you can trade quietly for yourself AND use creative ways to legally AVOID (not illegally EVADE) paying taxes? Please read this thread...
Quoting victoryong
Thanks! Will check it out, definitely a good alternative! {quote}

Hmm.. just because I suggested "family office", doesn't mean you should seriously consider it (unless I misunderstood your meaning).

To me, any act that exposes you to Inland Revenue Dept scrutiny is an act of stupidity.

For a Malaysian retail FX trader, if your nose is clean and your actions are above board, then you have nothing to fear from BNM.

It's the Inland Revenue guys that are a pain in the ass if they ever get their nosey snouts in your business.
I'm not trying to convince anyone. I'm not in the "convincing" business.
Well, I see no harm exploring the option. At the end, if its not suitable, will still revert back to retail investor status. First time hearing about "family office", getting a little 'itchy' now..

Quoting skenobi
{quote} Hmm.. just because I suggested "family office", doesn't mean you should seriously consider it (unless I misunderstood your meaning). To me, any act that exposes you to Inland Revenue Dept scrutiny is an act of stupidity. For a Malaysian retail FX trader, if your nose is clean and your actions are above board, then you have nothing to fear from BNM. It's the Inland Revenue guys that are a pain in the ass if they ever get their nosey snouts in your business.
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