From May 1, Indonesia will begin collecting value-added tax (VAT) on crypto-asset transactions and income tax on capital gains from such investments. In both cases, the rate will be 0.1%, according to a representative of the country’s Tax Service in an interview Reuters.
The agency applies a comparable tax on stock-market transactions, while deals in physical goods in Indonesia are subject to 11% VAT.
The legislation treats digital currencies as exchange-traded goods but bans their use as a means of payment.
According to the local Agency for Commodity Futures Trading Regulation, in 2021 the total value of cryptocurrency transactions on derivatives markets reached 859.4 trillion rupiah ($59.8 billion). The figure rose more than tenfold year over year.
By the end of 2021, the number of crypto investors in the country reached 11 million. The growth driver was the COVID-19 pandemic. According to a Jump Capital study, Indonesia entered the ranks of the most promising for crypto-friendly countries.
Earlier, the country’s central bank announced plans to issue CBDC, which will become legal tender.
As noted, work on developing cryptocurrency taxation in Indonesia began in May 2021.
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