Regulation of Crypto Taxes by the Indonesian Government!! The Indonesian Commodity Futures Trading Regulatory Agency stated that the 0.1% capital gains tax and 0.11% VAT applied to cryptocurrency transactions in the country should be reviewed.
According to a local report, executives of the Indonesian Commodity Futures Trading Regulatory Agency, also known as Bappebti, called for the reassessment of the 0.1% income tax taken from cryptocurrency transactions along with the 0.11% value-added tax (VAT) applied by the government for every crypto transaction. Tirta Karma Senjaya, head of Bappebti’s Market Development and Development Bureau, explained the reason for this request is the impending significant role of cryptocurrencies in Indonesia’s broad economy.
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Senjaya stated that with cryptocurrencies gaining more ground in the finance sector, they expect determination from the Directorate General of Taxes to review these taxes. It was reported that crypto taxes in Indonesia contributed about $2.49 million to government revenue in January. The report stated, “Income generated from crypto taxes reached 39.13 billion Rp in January 2024.”
Even though these taxes have been implemented in Indonesia for about two years, Senjaya stated that these, like other tax laws, should undergo an annual review. The report states, “This regulation needs to be evaluated because it has been in effect for more than a year. Taxes are usually evaluated annually.” In April 2022, Indonesia implemented a 0.1% capital gains tax and 0.11% VAT tax on crypto investments. It was reported that the country did this because cryptocurrency is not a currency, but a “commodity as defined by the Ministry of Trade.”
On 14th February, it was reported that vice-presidential candidate Gibran Rakabuming Raka, competing against presidential candidate Prabowo Subianto, won the Indonesian presidency by taking approximately 58% of the votes. Raka recently stated that his political party plans to offer opportunities in the crypto and blockchain field to Indonesia’s young population. Meanwhile, it was reported that the number of crypto holders increased by over 11% in 2021, from 11.2 million to 12.4 million.
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