Taxes will go into force on May 1.
Indonesia intends to levy a 0.1 percent value-added tax (VAT) on cryptocurrency transactions and capital gains beginning May 1.
The government intends to apply income tax and value-added tax on crypto assets and is now working on implementing regulations, tax official Hestu Yoga Saksama told Reuters on Friday.
“Cryptocurrencies will be subject to VAT as they are classified as commodities by the trade ministry. They are not a medium of exchange “‘He stated.
The 0.1 percent capital gains tax is comparable to the rate levied to Indonesian investors on stock purchases.
In Indonesia, cryptocurrency trading is controlled by the Commodity Futures Trading Regulatory Agency. As of July last year, it was predicted that up to 7.4 million Indonesians had invested in cryptocurrency, more than double the figure from a year earlier.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.