Indonesian Crypto Holders Under Income Tax’s Radar

As reported by Reuters, the Indonesian government officials have been planning to charge taxes to the holders of crypto-assets from May 1. The Polygon Network news organization shared the developments in Indonesia concerning crypto on Twitter. 🇮🇩 NEWS: Indonesia to impose VAT, income tax on crypto assets starting May — Polygon Times News (@Polygon_Times) April 2, 2022 Why Tax? Indonesia has decided to charge 0.1 percent Value Added Tax (VAT) and income tax for transactions and investments. However, crypto enthusiasts must not be as surprised by the implementation of taxes in Indonesia. As the country has been observing an enormous growth in the adoption of cryptocurrency. In addition, a spokesperson of the Indonesian tax office also explained that as termed by the Trade Ministry, crypto assets are a commodity rather than a currency. Is Charging Taxes A Good Start? One must keep in mind that, unlike goods and services that have an 11 percent tax imposed, crypto assets are significantly charged lesser. Additionally, a February 2022 report by the country’s Commodity Futures Trading Regulatory Agency (Bappebti) states that crypto transactions conducted in the country grew to $5.8 billion. These pieces of pro-crypto news in Indonesia signify how crypto is widely being accepted in the country and across the globe as well. On April 1, the Indian government also imposed a 30 percent crypto tax. In conclusion, although Indonesia has ...