Indonesia announced the information of imposing a tax on crypto-related assets, the tax includes Value Added Tax (VAT) and Income Tax. The VAT is well below 11 percent levied on most Indonesian goods and services.

Highlights

Crypto assets are counted as a commodity hence they will be included in the VAT
The government is still taking steps for implementing regulations for crypto
As per the official, a large range of tax laws passed last year

Also Read: Lok Sabha approved Crypto Tax Amendments and set them to be implemented starting April 1

Indonesia is planning for imposing new rules and replaced some old versions with new versions. The country regulatory body said to add VAT and Income Tax on cryptocurrency, a virtual form of currency. They wanted to levy a tax on capital gains from the investment related to the crypto, each investment will be charged by 0.1 percent. The tax is being imposed from the start of May 1, one official of Indonesian regulators told amid a boom in digital asset trading.

Virtual form of currency attracted a huge mass of people and that’s why the interest in such assets surged in Southeast Asia’s largest Economy during the Covid-19 Pandemic. Last year the crypto assets transaction commodity reached 859.4 trillion which is more than 10 percent of the previous data found.

The people in Indonesia are allowed to use cryptocurrency as a commodity but not used them as a means of payment.

An official of Indonesia, Hestu Yoga Saksama told a media briefing “Crypto assets will be subject to VAT because they are a commodity as defined by the trade ministry. They are not currency,” he added more so “we will impose income tax and VAT.”

The Indonesian government is still working to implement regulations for the taxes.

Indonesian authority has given his rate of VAT for crypto assets is well below the 11 percent imposed on most Indonesian goods and services. On the other hand, the Income Tax received 0.1 percent of gross transaction value matches that of the share.

Also Read: Ukraine Now Launched a Website to Accept Cryptocurrency Donations.