Starting on May 1, Indonesia will start to levy value-added tax (VAT) on transactions with crypto assets and income tax on capital gains from such investments. In both cases, the rate will be 0.1%, a spokesman for the country’s Internal Revenue Service has said in an interview with Reuters.
The agency levies a similar tax on transactions in the stock market, while transactions with physical goods in Indonesia are subject to 11% VAT.
Legislation equates digital currencies with commodities, but prohibits their use as a means of payment.
According to the local Commodity Futures Trading Regulatory Agency, last year, the total volume of transactions with cryptocurrencies will derivatives markets reached 859.4 trillion rupees. Over the year, the indicator has grown more than tenfold.
By the end of 2021, the number of crypto investors in the country reached 11 million. The growth driver of the indicator was the COVID-19 pandemic.
