Starting May 1, Indonesia will be collecting a value-added tax (VAT) on crypto transactions and capital gains at a rate of 0.1%.
As reported by Reuters, the government of the Southeast Asian archipelago is still working on the regulation, tax official Hestu Yoga Saksama said:
“Crypto assets will be subject to VAT because they are a commodity as defined by the trade ministry. They are not a currency.”
De facto, the VAT on crypto transactions are not something entirely new and do not come out of the blue. Indonesian investors are already charged 0.1% capital gains taxes on shares.
As of last July, an estimated 7.4 million Indonesians had invested in cryptocurrencies. Multiple studies and surveys have placed the country on top of lists of emerging crypto hotspots and crypto adoption.
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Source: Igaming
