Indonesian Government Sets Crypto Tax at 0.1% to Be Levied Starting in May – Starting in May, the Indonesian government will levy a 0.1% capital gains tax on crypto investments. In addition, crypto purchases will be subject to the same rate of value-added tax (VAT).
The Indonesian Ministry of Finance’s Directorate General of Taxes has established a 0.1 % income tax on capital gains from crypto investments value-added tax (VAT) on crypto purchases.
On Friday, Hestu Yoga Saksama, the director of tax regulations at the Ministry of Finance, told CNN Indonesia:
“Certainly, both the 0.1 percent PPh and the 0.1 percent VAT (for crypto) are final.”
He also stated that beginning May 1, both income tax and VAT on cryptocurrency purchases will be levied.
According to the director, the Indonesian government has placed income tax and VAT on cryptocurrency purchases because the central bank, Bank Indonesia, and the Ministry of Trade see cryptocurrency as a commodity rather than a method of payment.
He went on to say:
“Cryptocurrency will be subject to VAT because it is a commodity as defined by the commerce ministry. They are not a form of payment and as a result, we will levy income tax and VAT.”
According to Reuters, the VAT rate on crypto assets is substantially lower than the 11% paid on most items and services in Indonesia, and the 0.1 percent capital gains income tax is the same as the one imposed on shares listed on the Indonesian stock exchange.
Meanwhile, India has begun taxing cryptocurrency earnings at a rate of 30%, with no loss offsets or deductions. In addition, beginning July 1, a 1% tax deducted at source (TDS) will be imposed.