From May 1st, the Indonesian government will impose a value-added tax (VAT) on crypto transactions, a 0.1% income tax on capital gains from crypto investments, Reuters A tax official was quoted as saying.
The move comes as the Covid-19 pandemic boosts digital asset trading in Southeast Asia’s largest economy, with the number of crypto asset holders reaching 11 million by the end of 2021.
“Crypto assets will be subject to VAT as they are commodities as defined by the Ministry of Trade. They are not currency, so we will have income tax and VAT,” official Hestu Yoga Saksama said at a media briefing on April 1.
The VAT rate for crypto assets is well below the 11% levied on most Indonesian goods and services, while the capital gains tax rate is 0.1% of the total transaction value, matching stocks.
New tax law supports post-pandemic economic recovery
A wide-ranging new tax law passed last year is the legal basis for taxing crypto assets. The law aims to optimize tax collection affected by the Covid-19 pandemic.
The total value of crypto assets traded in Indonesia’s commodity futures market reached 859.4 trillion rupiah ($59.8 billion) last year, more than ten times the value of transactions in 2020, the newswire cited data from the country’s commodity futures trading regulator.
Crypto is a legal transaction, but not a payment
In September 2018, the Indonesian Ministry of Trade approved the trading of Bitcoin and other crypto assets as commodities, and cryptocurrencies were legalized in Indonesia. This means that it is legal for Indonesians to trade crypto assets as commodities, but not as a means of payment.
Additionally, Indonesian regulators have banned financial firms from facilitating cryptocurrency sales, i.e. they are not allowed to offer and facilitate the sale of crypto assets. Instead, this can be done through registered global cryptocurrency brokerages such as Coinbase, Binance, Kraken, or Gemini, or approved domestic exchanges, including Pintu, Indodax, Rekeningku, Triv, Luno, and Binance-backed Tokocrypto.
Islamic scholar insists crypto is a ‘holy place’
However, one problem remains unresolved. As a Muslim-majority country, the debate among Islamic groups over whether to regulate cryptoassets as halal (permitted) or haram (prohibited) has led to classifying them as the latter, due to “uncertainty” on several fronts Sex, stakes and harm”. Consider factors, including the prevalence of fraud.
Furthermore, Indonesia’s highest Islamic academic body, the National Ulema Council, concluded that the transaction of crypto as a digital commodity does not meet other requirements of Islamic finance law as it lacks necessary elements such as having a physical form and intrinsic value, proprietary Sex and ability are left to the buyer.
From May 1, the Indonesian government will impose a value-added tax (VAT) on crypto transactions and a 0.1 percent income tax on capital gains from crypto investments, Reuters quoted a tax official as saying. The move comes as the Covid-19 pandemic boosts digital asset trading in Southeast Asia’s largest economy, with the number of crypto asset holders set to reach 11 million by the end of 2021. “Crypto assets will be subject to VAT as they are a commodity as defined by the Ministry of Trade. They are not currencies, so we will be subject to income tax and VAT,” the official said,…
From May 1st, the Indonesian government will impose a value-added tax (VAT) on crypto transactions, a 0.1% income tax on capital gains from crypto investments, Reuters A tax official was quoted as saying.
The move comes as the Covid-19 pandemic boosts digital asset trading in Southeast Asia’s largest economy, with the number of crypto asset holders reaching 11 million by the end of 2021.
“Crypto assets will be subject to VAT as they are commodities as defined by the Ministry of Trade. They are not currency, so we will have income tax and VAT,” official Hestu Yoga Saksama said at a media briefing on April 1.
The VAT rate for crypto assets is well below the 11% levied on most Indonesian goods and services, while the capital gains tax rate is 0.1% of the total transaction value, matching stocks.
New tax law supports post-pandemic economic recovery
A wide-ranging new tax law passed last year is the legal basis for taxing crypto assets. The law aims to optimize tax collection affected by the Covid-19 pandemic.
The total value of crypto assets traded in Indonesia’s commodity futures market reached 859.4 trillion rupiah ($59.8 billion) last year, more than ten times the value of transactions in 2020, the newswire cited data from the country’s commodity futures trading regulator.
Crypto is a legal transaction, but not a payment
In September 2018, the Indonesian Ministry of Trade approved the trading of Bitcoin and other crypto assets as commodities, and cryptocurrencies were legalized in Indonesia. This means that it is legal for Indonesians to trade crypto assets as commodities, but not as a means of payment.
Additionally, Indonesian regulators have banned financial firms from facilitating cryptocurrency sales, i.e. they are not allowed to offer and facilitate the sale of crypto assets. Instead, this can be done through registered global cryptocurrency brokerages such as Coinbase, Binance, Kraken, or Gemini, or approved domestic exchanges, including Pintu, Indodax, Rekeningku, Triv, Luno, and Binance-backed Tokocrypto.
Islamic scholar insists crypto is a ‘holy place’
However, one problem remains unresolved. As a Muslim-majority country, the debate among Islamic groups over whether to regulate cryptoassets as halal (permitted) or haram (prohibited) has led to classifying them as the latter, due to “uncertainty” on several fronts Sex, stakes and harm”. Consider factors, including the prevalence of fraud.
Furthermore, Indonesia’s highest Islamic academic body, the National Ulema Council, concluded that the transaction of crypto as a digital commodity does not meet other requirements of Islamic finance law as it lacks necessary elements such as having a physical form and intrinsic value, proprietary Sex and ability are left to the buyer.
