Amid a boom in digital asset trading, Indonesia plans to impose tax on crypto trading and investments.
The government plans to charge value-added tax (VAT) on crypto asset transactions and income tax on capital gains from investments at 0.1 per cent each.
Reports claim Indonesia has over 11 million crypto asset holders. The country has witnessed a surge in crypto transactions as the commodity futures markets touched an astronomical $59.8 billion amid regulatory support from government bodies.
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Indonesians are not allowed to make payments in cryptocurrency however they are allowed to trade in crypto assets as a commodity. According to a study, Indonesia’s crypto assets ownership is one of the highest in the world. Investors in the country have reportedly been using cryptos to protect themselves from inflation.
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A report claims 41 per cent of Indonesians aged between 18 and 75 with an annual income of over $14,000 own crypto assets with most Indonesians convinced that crypto is the future of money.
Bitcoin, Ethereum and Solana have gained traction in the country as the Indonesian government eyes a digital economy even as crypto investors have doubled in the last two years.
According to Indonesia’s trade ministry, Bitcoin transactions grew 14 times from $4.1 billion in 2020 to $59.83 billion in 2021. A body under the trade ministry called Commodity Futures Trading Regulatory Agency (BAPPEBTI) oversees cryptocurrency trading in the country.
(With inputs from Agencies)
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