Indonesia mulling turns into double taxation on crypto: report

Indonesia's Commodity Futures Trading Agency (Bapebti) has reportedly asked the country's finance ministry to review its stance on cryptocurrency taxes.

According to a recent internal report, executive members at Babbitt have called for a reassessment of the 0.11% value-added tax (VAT) imposed by the government on every crypto transaction in Indonesia and the 0.1% income tax on crypto.

Tirta Karma Senjaya, Head of Market Development and Development Office at Bapebti, explained the reason behind this: crypto is on its way to become a major part of Indonesia's wider economy in the near future.

“Because cryptocurrencies will later become part of the financial sector, we expect a commitment from the Directorate General of Taxes to review these taxes.”

The report also stated that the total government revenue from crypto taxes in Indonesia reached approximately $2.49 million in January.

“In January 2024, revenue from cryptocurrency taxes reached Rp39.13 billion,” the report said.

Although these crypto taxes have been in effect in Indonesia for about two years, Senjaya said they should undergo an annual review similar to other tax laws.

“The review is necessary because this regulation has been in force for over a year. Normally, taxes are assessed annually,” the report said.

Related: IRS Hires 2 Private Sector Crypto Experts to Prepare for Tax Season

In the year In April 2022, Indonesia implemented a 0.1% capital gains tax on crypto investments, as well as a 0.11% VAT tax. According to Cointelegraph, the country did this with crypto “as defined by the Ministry of Commerce” and not currency.

In the year On February 14, vice presidential candidate Gibran Rakabuming Raka, who is running against presidential candidate Prabowo Subianto, was reported to have won the presidential election with 58 percent of the vote.

Gibran recently revealed that his political party plans to focus on providing Indonesian youth with opportunities in the crypto and blockchain space.

Meanwhile, the number of crypto holders in Indonesia has increased by more than 11 percent, from 11.2 million in 2021 to 12.4 million in 2023.

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