The nation’s 0.11% VAT on cryptocurrency transactions and 0.1% capital gains tax have both been called into question by the Indonesian Commodity Futures Trading Regulatory Agency.
According to reports, the Ministry of Finance in Indonesia has been urged to evaluate its position on cryptocurrency taxation by the country’s Commodity Futures Trading Regulatory Agency (Bappebti).
Executive Bappebti staff members have asked for a review of the government-imposed value-added tax (VAT) of 0.11% on every cryptocurrency transaction in Indonesia as well as the 0.1% income tax on cryptocurrency, according to a recent local story.
The Director of Bappebti’s Bureau of Market Development and Development, Tirta Karma Senjaya, gave an explanation for this, saying that cryptocurrency is expected to play a significant role in Indonesia’s larger economy soon.
“We expect the Directorate General of Taxation to commit to evaluating these taxes because cryptocurrencies will eventually be a part of the financial sector.”
The study also stated that in January, Indonesia’s government received a total of almost $2.49 million in revenue from crypto taxes. The study stated that the bitcoin taxes generated Rp39.13 billion in income in January 2024.
Even though these crypto taxes have been in place in Indonesia for almost two years, Senjaya said that, like other tax regulations, they ought to be reviewed annually.
This rule has been in effect for more than a year, so the review is required. In general, taxes are reviewed once a year,” the report said. Indonesia began enforcing the 0.11% VAT tax and the 0.1% capital gains tax on cryptocurrency investments in April 2022. The country took this action because cryptocurrency is a “commodity as defined by the Trade Ministry” rather than a currency, according toa recen report..
According to reports on February 14, Prabowo Subianto, the presidential candidate, and vice presidential candidate Gibran Rakabuming Raka received about 58% of the vote to win the presidency. According to recent remarks made by Gibran, his political party intends to concentrate on offering chances in the cryptocurrency and blockchain field to Indonesia’s younger population.
In the meantime, from 11.2 million in 2021 to 12.4 million in 2023, there was a more than 11% growth in cryptocurrency holders in Indonesia.