Indonesia introduces income tax for crypto traders

by in Cryptocurrency News

Indonesia

The Indonesian authorities are negative about the initiative to allow the use of digital currencies to pay for goods and services.

Back in the summer of last year, the head of the Central Bank, Perry Varjiyo, said that the regulator would not allow the lifting of the ban on the use of bitcoin and other virtual currencies as payment instruments. He also announced the introduction of an income tax for crypto traders.

From May 2022, the law on the taxation of traders comes into force. The tax rate will be 0.1%, according to Reuters.

In addition to income tax, traders will have to pay VAT, as digital assets are treated as goods by the Ministry of Commerce, according to tax authority spokesman Hestu Yogi Saksama.

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In parallel, the Indonesian government is working to create a regulatory framework for the cryptocurrency industry.

Operations with digital currencies in Indonesia are controlled by the Commodity Futures Trading Regulatory Agency.

About 7.4 million Indonesians are cryptocurrency investors, this number has doubled compared to 2020.