Indonesian Government Sets Crypto Tax at 0.1% to Be Levied Starting in May – Taxes Bitcoin News

Indonesia’s government will tax crypto investment capital gains. At 0.1% beginning in May. Purchases of crypto will also be subject to the value-added taxes (VAT), at 0.1% beginning in May.

Indonesia will start taxing crypto income at 0.1%

The Ministry of Finance in Indonesia has established income tax (PPh), on capital gains, and value-added taxes (VAT) for crypto purchases, at 0.1%.

CNN Indonesia was informed Friday by Hestu Yoga Saksama (director of tax regulation for the Ministry of Finance).

That’s right, 0.1% PPh and 0.1% VAT (for crypto), all of which are final.

He also stated that the tax on income and VAT for crypto transactions will both be in effect starting May 1.

Director: The Indonesian government has imposed an income tax on cryptocurrency purchases and VAT because Bank Indonesia (the central bank) and Ministry of Trade consider crypto as a commodity. He explained:

Because crypto assets are commodities as defined by trade ministry, they will be subjected to VAT They are not a currency … So we will impose income tax and VAT.

According to Reuters, the VAT rate for crypto assets is much lower than the 11% that Indonesians impose on many goods and services. The 0.1% income tax that capital gains owes matches the one that Indonesian stocks exchange shares.

India began taxing crypto income at 30 percent without any loss offsets. A 1% tax will also be deducted from the source (TDS), starting July 1.

How do you feel about Indonesia’s taxation of crypto transactions and income? Please comment below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.