Indonesia to impose 0.1% income tax for crypto transactions: report

Tax • April 1, 2022, 7:00PM EDT

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.

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to akeely@theblock.co or follow her on Twitter for updates @AislinnKeely.