Indonesia Will Tax Crypto Earnings, Purchases Starting in May

Indonesia will start taxing crypto transactions and assets next month.

The finance ministry has set a 0.1% value-added tax on crypto asset purchases, while earnings and capital gains from such transactions will be subject to a 0.1% final income tax, according to a rule that will be effective on May 1.

Trading on platforms that haven’t been authorized by the local regulator would result in a higher VAT and income tax of 0.2% each.

Crypto Boom Sends Countries Scrambling to Align Tax Reporting

Crypto trading is picking up in Southeast Asia’s biggest economy, with 11 million market participants conducting $60 billion worth of transactions last year, according to Indonesia’s commodities futures trading agency, known as Bappebti. Such assets are regulated by the trade ministry as commodities and aren’t allowed to be used as legal tender.

The government has already told Indonesians who invest in non-fungible tokens to pay tax, citing a 2008 law.