Indonesia’s Commodity Futures Trading Regulatory Agency has reportedly asked the nation’s Ministry of Finance to assess its stance on cryptocurrency taxation.
According to a recent local report, the executive staff members at Indonesia’s Commodity Futures Trading Regulatory Agency, also known as Bappebti, have specifically asked to reassess the government-imposed value-added tax (VAT) of 0.11% on each crypto transaction in Indonesia, as well as the 0.1% income tax on crypto.
Tirta Karma Senjaya, head of the Bureau of Market Development and Development at Bappebti explained the reason behind this is that crypto is on track to become an integral part of Indonesia’s broader economy in the near future.
“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.”
The report further noted that total government revenue from crypto taxes in Indonesia reached $2.49 million Uin January 2024.
“In January 2024, the revenue from cryptocurrency taxes reached Rp39.13 billion,” the report noted.
Although these crypto taxes have been in effect in Indonesia for nearly two years, Senjaya stated that they should undergo an annual review similar to other tax laws.
“The evaluation is necessary because this regulation has been in place for more than a year. Typically, taxes undergo evaluation annually,” the report stated.
Related: IRS hires 2 private-sector crypto experts to prep for tax season
In addition, the number of crypto holders increased by more than 11%, from 11.2 million in 2021 to 12.4 million.
In April 2022, Indonesia implemented the 0.1% capital gains tax on crypto investments as well as the 0.11% VAT tax. Cointelegraph reported that the nation did this claiming crypto is “a commodity as defined by the Trade Ministry” and not a currency.
Meanwhile, on Feb. 14, it was reported that Gibran Rakabuming Raka, the vice presidential candidate running on the ticket with presidential candidate Prabowo Subianto, is winning Indonesia’s presidency with roughly 58% of the vote.
Gibran recently stated that his political party planned to focus on providing Indonesia’s younger population with opportunities in the crypto and blockchain space.
Magazine: Owner of seven-trait CryptoPunk Seedphrase partners with Sotheby’s: NFT Collector
Also Read More: World News | Entertainment News | Celebrity News
