Indonesia Will Tax Cryptocurrency Transactions

Cryptocurrency transactions in Indonesia will be taxed.

Especially in Indonesia, one of the countries where the adoption of cryptocurrencies has increased tremendously due to the coronavirus pandemic, as of May 1, a 0.1 percent tax will be charged from cryptocurrency transactions and income. Speaking on the subject, the authorized person Hestu Yoga Saksama stated that they went to such a practice because crypto assets are considered as commodities: "The reason we charge VAT on crypto assets is that they are considered commodities by the Ministry of Commerce. We do not accept them as money. Therefore, we will receive both VAT and income tax. Our government continues to work on other details on the relevant law." According to the information received from the Commodity Futures Regulatory Authority; In the country with more than 11 million cryptocurrency holders, the crypto asset transaction value was set at $60 billion last year. In the South Asian country, as in many other countries, the use of cryptocurrencies/assets is prohibited for payments. It is also noteworthy that the VAT rate on cryptoassets is severely below the 11% rate applied to most Indonesian goods and services. The tax law on cryptocurrencies in Indonesia was first enacted last year.