JAKARTA: Indonesia plans to charge value-added tax (VAT) on crypto asset transactions and an income tax on capital gains from such investments at 0.1% each, starting from May 1, a tax official said on Friday, amid a boom in digital asset trading.
Interest in digital assets has surged in Southeast Asia’s largest economy during the COVID-19 pandemic, with the number of crypto asset holders jumping to 11 million by the end of 2021.
Last year’s total crypto asset transactions in commodity futures markets reached 859.4 trillion rupiah ($59.8 billion), up more than 10 times from 2020’s transaction value, data from the Commodity Futures Trading Regulatory Agency showed.
Indonesians are allowed to trade crypto assets as a commodity but not to use them as a means of payment.
“Crypto assets will be subject to VAT because they are a commodity as defined by the trade ministry. They are not a currency,” the official, Hestu Yoga Saksama, told a media briefing.
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