Published: 02.04.2022
Article reading time:
1 minute.
The Indonesian tax authority announced plans to tax the income of citizens of the country from trading cryptocurrencies with a tax of 0.1%. The new tax will take effect May 1.
According to Reuters, citing a local official, Hestu Yoga Saksama, Indonesian authorities will introduce a value added tax on cryptocurrencies. However, the tax rate will be only 0.1%.
“Cryptocurrencies are subject to this tax because, as defined by the Department of Commerce, they are commodities. These are not currencies, which is why we tax them,” Hestu Saksama emphasized.
At the moment, there is no clear mechanism for taxing income from cryptocurrency trading in Indonesia. Interestingly, physical goods in Indonesia are taxed at 11%.
Earlier, the Financial Services Authority of Indonesia warned financial institutions that they are strictly prohibited from using, selling and facilitating the trading of digital assets.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
