Ciaran Lyons3 hours agoIndonesia mulling changes to dual taxation on crypto: ReportThe Commodity Futures Trading Regulatory Agency of Indonesia has urged a reevaluation of the country’s 0.1% capital gains tax and 0.11% VAT on crypto transactions.1078 Total views17 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksIndonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) has reportedly asked the nation’s Ministry of Finance to assess its stance on cryptocurrency taxation.
According to a recent local report, executive staff members at Bappebti have requested to reassess the government-imposed value-added tax (VAT) of 0.11% on each crypto transaction in Indonesia, as well as the 0.1% income tax on crypto.
Tirta Karma Senjaya, head of the Bureau of Market Development and Development at Bappebti explained the reason behind this is that crypto is on track to becoming an integral part of Indonesia’s broader economy in the near future.“Because later on, cryptocurrencies will become part of the financial sector, we expect a commitment from the Directorate General of Taxes to evaluate these taxes.”
The report further noted that total government revenue from crypto taxes in Indonesia reached the equivalent of approximately $2.49 million in January.
“In January 2024, the revenue from cryptocurrency taxes reached Rp39.13 billion,” the report noted.
Although these crypto taxes have been in effect in Indonesia for nearly two years, Senjaya stated that they should undergo an annual review similar to other tax laws.
“The evaluation is necessary because this regulation has been in place for more than a year. Typically, taxes undergo evaluation annually,” the report stated.
Related:IRS hires 2 private-sector crypto experts to prep for tax season
In April 2022, Indonesia implemented the 0.1% capital gains tax on crypto investments, as well as the 0.11% VAT tax. Cointelegraph reported that the nation did this as crypto is a “commodity as defined by the Trade Ministry” and not a currency.
On Feb. 14, it was reported that Gibran Rakabuming Raka, the vice presidential candidate running with presidential candidate Prabowo Subianto, won the presidential election with roughly 58% of the vote.
Gibran recently stated that his political party planned to focus on providing Indonesia’s younger population with opportunities in the crypto and blockchain space.
Meanwhile, the number of crypto holders in Indonesia has increased by more than 11%, from 11.2 million in 2021 to 12.4 million in 2023.
Magazine:Owner of seven-trait CryptoPunk Seedphrase partners with Sotheby’s: NFT Collector# Bitcoin# Cryptocurrencies# Taxes# Indonesia# Report# Cryptocurrency Exchange# RegulationAdd reactionAdd reactionRead moreNigeria denies report of $10B Binance fineUS energy officials agree to "destroy" all data from crypto mining survey