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According to a tax official, a proposed capital gains tax policy on cryptocurrency transactions is also being debated.
Neilmaldrin Noor, a spokesperson for the Indonesian Directorate General of Taxes, said that the authority is considering a tax scheme for capital gains generated from cryptocurrency trades, Reuters reports Tuesday.
“It is important to know that if there is a profit or capital gain generated from a transaction, the profit is an object of income tax,” the official stated. Noor said that Indonesian taxpayers who receive capital gain from crypto trades would have to pay the tax and report it to the government.
The official noted that the new crypto tax scheme for capital gains has not been implemented and is still under discussion.
The latest news comes just weeks after it was announced that Indonesia’s Commodity Futures Trade Regulatory Agency, or Bappebti, was considering levying a tax on all cryptocurrency transactions. As part of the initiative, the authority reportedly intended to immediately subtract the tax from purchases made by 13 crypto exchanges controlled by Bappebti. According to a Bappebti executive, the final tax rate had not been decided as of late April.
Indonesia’s newest crypto tax plans come after years of a blanket moratorium on cryptocurrency payments. Back in 2017, the country’s central bank released a rule prohibiting the use of cryptocurrency in payment processes, outpacing parallel prohibitions in other countries such as Russia and Turkey.