An Indonesian regulator has pointed to growing crypto adoption as the reason for introducing new crypto tax changes to the existing structure.
According to recent reports, crypto taxes in Indonesia could go through changes soon. The Commodity Futures Trading Regulatory Agency (Bappebti) has proposed the crypto tax changes. Currently, the Indonesian government imposes a 0.1 income tax on crypto. At the same time, a 0.11% value-added tax (VAT) is added to every crypto transaction.
Tirta Karma Senjaya, a senior official at Bappebti, explained the reasons for the changes to rising crypto adoption. He stated, “Because later on, cryptocurrencies will become part of the financial sector, we expect a commitment from the Directorate General of Taxes to evaluate these taxes.”
Crypto taxes in Indonesia amounted to around $2.49 million in January 2024. The crypto taxes came into effect a couple of years ago. According to Senjaya, the taxes should undergo annual evaluations. Moreover, he described the infancy stage of the crypto sector in the country. In his opinion, the sector must grow before making significant tax contributions.
On the other hand, the regulator did not specify the exact changes in crypto taxes. The VAT could likely go, while the crypto industry expects it to be at par with regular securities regulation.
Meanwhile, the government responded to the suggestions and claimed it would indulge in further discussions. Indonesia is one of the few countries in Asia that are actively discussing crypto taxes. A few months ago, Japan was also in the news for slashing crypto taxes to boost crypto adoption.
In Europe, countries like Slovakia and Switzerland have also made similar moves. Slovakia passed a crypto tax bill in 2023 to lower taxes on crypto transactions. On the other hand, Lugano, Switzerland, made it possible for its residents to start paying local taxes in crypto.
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