An Indonesian tax official said Friday that the country plans to impose certain tax rates for crypto transactions.
Reuters reported that Hestu Yoga Saksama told a media briefing that crypto transactions will now face a value added tax (VAT) and an income tax on capital gains at 0.1% each. The changes will take effect May 1.
Indonesia has banned crypto as a payment instrument in the country, but treats the asset as a commodity for trading. Saksama said because crypto is not considered currency, it will be subject to income tax and VAT, though the VAT will be below the 11% figure most Indonesian goods and services face.
Written regulation for the taxes is still in the works, according to Saksama's comments, but a tax law passed last year empowers the government to tax crypto assets.
News of a possible income tax on crypto first broke in May of 2021. At the time, a spokesman of Indonesia's tax office said the office was considering an income tax on crypto profits.