--- title: "Indonesia will impose VAT, Income tax on crypto assets from May" description: "Indonesia is asking for a tax on a virtual currency called cryptocurrency and imposing income tax on the related products of Crypto currency" author: "Sanjay Goenka" published: 2022-04-02 canonical: https://www.mindstick.com/news/1533/indonesia-will-impose-vat-income-tax-on-crypto-assets-from-may category: "cryptocurrency" tags: ["technology", "income tax", "cryptocurrency", "currency"] reading_time: 2 minutes --- # Indonesia will impose VAT, Income tax on crypto assets from May Indonesia announced the information of **imposing a tax on crypto-related assets**, the tax includes **[Value Added Tax](https://answers.mindstick.com/qa/34764/which-country-applied-value-added-tax-vat-for-the-first-time-on-1st-january-2018) (VAT)** and **[Income Tax](https://www.mindstick.com/articles/12890/income-tax-for-startups-in-india-tax-incentives-to-start-ups)**. The VAT is well below **11** percent levied on most Indonesian [goods and services](https://answers.mindstick.com/qa/101686/can-you-explain-the-goods-and-services-tax-gst-in-india). ## 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](https://www.mindstick.com/news/1519/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](https://answers.mindstick.com/qa/96056/at-which-place-the-indian-navy-has-participated-in-the-u-s-navy-led-southeast-asia-cooperation-and-training-seacat-military-exercise)’s [largest Economy](https://yourviews.mindstick.com/view/85530/will-india-be-the-third-largest-economy-by-2027) during the **Covid-19 Pandemic.** Last year the crypto assets [transaction](https://www.mindstick.com/blog/175/transactions-in-database) 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](https://www.mindstick.com/news/1505/ministry-of-communications-and-multimedia-support-the-adoption-of-cryptocurrency-in-malaysia)**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.](https://www.mindstick.com/news/1496/ukraine-now-launched-a-website-to-accept-cryptocurrency-donations)** --- Original Source: https://www.mindstick.com/news/1533/indonesia-will-impose-vat-income-tax-on-crypto-assets-from-may Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.