<p>An Indonesian tax official said Friday that the country plans to impose certain tax rates for crypto transactions. </p> <p>Reuters <a href="https://finance.yahoo.com/news/indonesia-impose-vat-income-tax-112300072.html">reported</a> 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. </p> <p>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. </p> <p>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. </p> <p>News of a possible income tax on crypto first broke in <a href="https://www.theblockcrypto.com/linked/104391/indonesia-crypto-tax-plan-profits">May</a> of 2021. At the time, a spokesman of Indonesia's tax office said the office was considering an income tax on crypto profits. </p>