Indonesia to tax income, VAT on digital assets from May
The country intends to levy a value-added tax (VAT) on digital asset transactions and income tax on gains from digital asset investments from May 1, an Indonesian tax official said. rate of 0.1%.
A Bitcoin sign on the island of Bali, Indonesia in 2018. (Photo: Reuters)
During the Covid-19 pandemic, Southeast Asia’s largest economy exploded in interest in digital assets. The number of digital asset holders will reach 11 million by the end of 2021. Data from the Commodity Futures Trading Authority shows that, last year, the total value of digital asset transactions in the market was Indonesia’s commodity futures hit 859.4 trillion rupiah ($59.8 billion), up more than 10 times from 2020.
Indonesians are allowed to trade digital assets as a commodity, but not as a means of payment. At a recent press conference, tax official, Mr. Hestu Yoga Saksama said: “Digital assets are subject to VAT because they are goods as defined by the Ministry of Commerce. They are not currency. So we will levy VAT and income tax.”
He added that the government is still adding tax regulations. The VAT rate on digital assets is 0.1%, much lower than the 11% rate for most domestic goods and services, and the income tax is about the same.
The revised tax law passed in October 2021 is the legal basis for taxing digital assets. The law aims to optimize revenue collection and improve tax compliance after the state treasury was greatly affected in 2020 and 2021 because of Covid-19. According to Finance Minister Sri Mulyani Indrawati, the new measures will increase state revenue from taxes by about 139.3 trillion rupiah ($9.8 billion).
Du Lam (According to Reuters)
at Blogtuan.info – Source: vietnamnet.vn – Read the original article here
