Indonesia to tax crypto gains and VAT

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Imposing a tax on cryptocurrency is something we’ve seen before and not a norm again, personally I feel the reason they are imposing a tax on it is just that they can control it so they are finding a way to just wrap it around their fingers. Because cryptocurrencies are actually decentralized which means not controlled by anybody or authorities, why impose a tax on them.

The country that actually made taxing cryptocurrency look like they wanted to control it is India; they made an outrageous tax fee on both NFTs and crypto. Now currently, Indonesia has also decided to introduce income tax and value-added tax on crypto, and also capital gains, and the reason they gave for the taxing was because of the popularity cryptocurrencies are gaining in the nation.

The tax percentage on cryptocurrencies and capital gains will be at 0.1% and this will take effect next month. According to reports, the tax will affect any or all blockchain-based assets as long as they had a huge surge in price and popularity during the pandemic era. My concern now is, are they scared of crypto gaining popularity or just want to control it that bad well we’ll see about that.

According to Hestu Yoga Saksama an Indonesian official, he said that the government has been studying and monitoring cryptocurrencies for quite some time and they have plans of regulating them very soon. He also confirmed that a 0.1% income tax on capital gains will be imposed on cryptocurrencies and a VAT rate of 11% will be imposed on goods and services of Indonesians.

He concluded by saying “Crypto-assets will be subject to VAT because they are a commodity as defined by the trade ministry. They are not a currency,” the official, Hestu Yoga Saksama, revealed. “So we will impose income tax and VAT.”

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