Indonesia to impose 0,1% income tax on cryptocurrency transactions

Transactions with digital assets will also be subject to value-added tax (VAT)

02.04.2022 - 09:45

378

1 min

What’s new? Hestu Yoga Saksama, a spokesman for the Indonesian tax office, stated that the country plans to introduce tax rates for cryptocurrency transactions. Transactions with digital assets will now be subject to value-added tax (VAT) and capital gains income tax at a rate of 0,1%, Reuters reports. The changes will take effect on May 1.

Information on the Reuters website

What else does Saksama say? Indonesia has banned cryptocurrencies as a payment instrument in the country but considers the asset as a commodity for commerce. Since cryptocurrency is not considered a currency, it will be subject to income tax and VAT, although VAT will be lower than 11%, Saksama said. Written tax regulation is still being worked out, but the tax law passed last year gives the government the right to tax crypto assets.

What had happened before? In January, Indonesia’s Financial Services Authority (OJK) warned that financial companies are prohibited from offering and facilitating sales of cryptocurrencies. The regulator noted that crypto assets are highly volatile and that people buying them should fully understand the risks.

Author: