The Internal Revenue Service of Indonesia is contemplating taxing income generated from digital asset trades.
Earlier, preparations to levy a tax on all crypto transactions in the country were described by the Indonesian Futures Market Observatory. It looks like the regulator has sent a suggestion to the tax office. According to the spokesperson of the department, the applicable document is presently under examination.
“It is essential to comprehend that if a trader earns a profit or other revenue from a cryptocurrency transaction, then income tax must be levied in relation to this income. Thus, every trader must account for income from crypto transactions and reimburse tax,” the official asserted.
It would seem that the country’s agencies have opted to take advantage of the growing popularity of cryptocurrencies in Indonesia and boost budget proceeds. For instance, the amount of Indodax platform users soared from 2.3 million at the start of the year to 3 million by the end of April.
The COO of Tokocrypto, a local crypto exchange, Teguh Kurniawan, has recommended a tax of 0.05%. This is much less than the tax on revenue from trading with stocks, which stands at 0.1%.
We remind you that in 2017, Indonesia prohibited the use of crypto as a method of payment. Nevertheless, in 2018, digital asset trading was permitted under the form of the commodities exchange.
