The Indonesian government is set to charge taxes for crypto transactions starting May, reported CNN Indonesia, citing a statement from a representative of the finance ministry.
The charge would consist of 0.1% income tax on capital gains and 0.1% value-added tax (VAT) for crypto asset transactions. The VAT charge is applied to crypto assets as the government treats them as commodities and not as a payment method – in contrast, stocks are only affected by the income tax and exempt from VAT charges.
The government is still ironing out the technical details, which will be published as a regulation from the finance minister.
Oscar Darmawan, CEO of local crypto exchange Indodax, said in a CNBC Indonesia report that the tax tariff is too high and may discourage people from buying crypto assets. He hopes the total tariff on income tax and VAT would be lowered to around 0.1%, similar to what is applied for stocks.
See also: Behind the metaverse real estate rush
Editing by Miguel Cordon and Lorenzo Kyle Subido
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