Indonesia To Impose 0.1% Crypto Tax Starting In May

[wozzek23]

The Indonesian government has decided to impose income tax and value added tax on cryptocurrency because they have notice that the cryptocurrency community in Indonesia has continued to grow since the pandemic.

So, it shouldn’t come as a surprise, that was the case in most countries, we noticed increase in the number of investors in the cryptocurrency market during the pandemic which took place in 2020.

And in a case like this, when the government starts to notice that more and more people are getting involved in things like this, they would like to get involved in it, and one of the ways they are doing this is by adding tax.  I have also heard that the community are strongly against it, although I don’t think that 0.1% is much.

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[Leviathan.007]

Compared to many other countries in the world where they take huge amounts of tax from investors and especially the cryptocurrency investors Indonesia is to take a huge amount of tax from people, however, I believe taking tax can be just an alternative solution for the government and people can easily bypass and runaways from the tax because of bitcoin basic none knows the real capital on unless they try to exchange the asset into a fiat currency which requires pass some KYC steps.

[dark1234]

I myself am Indonesian and so far the government is still neutral for crypto Indonesia and there is no shade for special laws and crypto tax regulations as my handwriting in another post
while the number of crypto asset investors in Indonesia has reached 12.4 million as of February 2022 and this is a very high development for the community towards crypto from the previous year.

[Yogee]

I myself am Indonesian and so far the government is still neutral for crypto Indonesia....

How is it neutral when you already have the following?
- It's not recognized as a currency and therefore cannot be used as payment.
- It's allowed for trading and classified as a commodity
- It's taxable under VAT and Income Tax

Their stance is pretty clear to me even before the recent tax was announced.

[awik p]

Compared to many other countries in the world where they take huge amounts of tax from investors and especially the cryptocurrency investors Indonesia is to take a huge amount of tax from people, however, I believe taking tax can be just an alternative solution for the government and people can easily bypass and runaways from the tax because of bitcoin basic none knows the real capital on unless they try to exchange the asset into a fiat currency which requires pass some KYC steps.

Indeed, from KYC to convert to fiat, you can trace who and how much funds were withdrawn. therefore the government still has an object of increased tax per May, namely cryptocurrency. I think this is not a problem as long as clear regulations from the government are implemented. With the collection of this tax, it means that bitcoiners themselves certainly have the rights that are listed according to the government regulations.

[Lanatsa]

You can't tax every crypto trader and holders. How do you tax people trading defi on decentralized exchanges and selling on P2P using escrow. It will really be difficult. Currently, my bank doesn't know the source of my credit, it's not tied to commodity. Censoring crypto is very complex.

For now they can’t, and they will focus more on centralized platform to know every single person who are into cryprocurrency and that’s where taxation begins. Sooner or later they will require everyone to report crypto profits, this could be more good than to ban cryptocurrency at all, we will deal with this soon.

Good luck with their government if they could do that since in the first place they don't want crypto to be used a means of payment. There are many ways to avoid being in the list of centralization so I wonder how did their government plan all of this making exceptions and consideration.

The tax isn't that big and anyone who are holding won't get taxed. Once you remove yourself from being on the list of centralization especially crypto holders you are safe from taxation and also don't make it obvious if you want to trade with someone and there's no way on earth they would know someone is trading with x person.

In short, there are really ways or methods which could really make yourself able to hide with these taxation.Come to think that other government had already imposed some taxation on transactions made but still not able

to make it in full extent or effectivity yet users who had been dealing with crypto could able to avoid themselves on getting taxed without being detected which is the reason on why government do really hate up crypto
for this kind of particular feature which they cant really get rid off nor able to control.So its not really that a worrisome thing for Indian crypto users.

[laredo7mm]

Indonesia plans to charge value-added tax (VAT) on crypto asset transactions and an income tax on capital gains from such investments at 0.1% each.

Indonesia plans to charge value-added tax (VAT) on crypto asset transactions and an income tax on capital gains from such investments at 0.1% each, starting from May 1, a tax official said on Friday, amid a boom in digital asset trading.

I think this is good for the future of cryptocurrencies in the country. They are implementing a tax on crypto-assets which means they are considering crypto as a legal commodity.  People from that country now at least use crypto under official jurisdiction. I am sure they will legalize crypto in the future officially. 0.1% is not actually discouraging like the 30% tax in India.

[Johnyz]

Indonesia plans to charge value-added tax (VAT) on crypto asset transactions and an income tax on capital gains from such investments at 0.1% each.

Indonesia plans to charge value-added tax (VAT) on crypto asset transactions and an income tax on capital gains from such investments at 0.1% each, starting from May 1, a tax official said on Friday, amid a boom in digital asset trading.

I think this is good for the future of cryptocurrencies in the country. They are implementing a tax on crypto-assets which means they are considering crypto as a legal commodity.  People from that country now at least use crypto under official jurisdiction. I am sure they will legalize crypto in the future officially. 0.1% is not actually discouraging like the 30% tax in India.

That could be a small tax to encourage everyone to declare their crypto profit, and once Indonesia have the details already of those who are into cryptocurrency, they will surely increase that rate so don’t be complacent for that. Although this is a good start of adoption in Indonesia, its just that people should consider everything if they want to pay taxes especially their security and their anonymity.

[boty]

with this tax, Indonesian should worry or complaint, if compare with Indian Tax that reach 30% this is good step from Indonesian government to growth crypocurrency ecosystem. The President always support Indonesian citizen to earn money and take opportunity from crypto market in several occasion. by this tax, Indonesian investors and traders now have certainity with their money.

[fara_buduk]

when the tax is applied automatically crypto is legal there .... and I hope that with the applicable tax rates Indonesia will also provide good service regarding the crypto transaction security system by providing special laws to minimize crypto fraud which is now ranked no. 2 in the world

[kaya11]

Indonesia plans to charge value-added tax (VAT) on crypto asset transactions and an income tax on capital gains from such investments at 0.1% each.

Indonesia plans to charge value-added tax (VAT) on crypto asset transactions and an income tax on capital gains from such investments at 0.1% each, starting from May 1, a tax official said on Friday, amid a boom in digital asset trading.

Interest in digital assets has surged in Southeast Asia's largest economy during the COVID-19 pandemic, with the number of crypto asset holders jumping to 11 million by the end of 2021.

Last year's total crypto asset transactions in commodity futures markets reached 859.4 trillion rupiah ($59.8 billion), up more than 10 times from 2020's transaction value, data from the Commodity Futures Trading Regulatory Agency showed.

Indonesians are allowed to trade crypto assets as a commodity but not to use them as a means of payment.

"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, told a media briefing. "So we will impose income tax and VAT."

Source: https://www.coinshots.com/news/indonesia-to-impose-vat-income-tax-on-crypto-assets-from-may

At least it is better than not being able to trade at all. Also better than what Indian Government are trying to tax their people of 30 percent. Aside from that, is there a punishment when they used it as a payment? How would they know if it was just for trading or a commodity only and not by means of payment of services? Maybe their exchanged are centralized and regulated but 59.9 billion dollars is a lot to track.