Indonesia will start charging value-added tax (VAT) on crypto asset transactions as well as income tax on capital gains from such investments from May 1.
Reuters has reported citing a representative of the country's tax service that in both cases the rate will be 0.1%.
The agency currently levies a similar tax on stock market transactions, while physical goods transactions in Indonesia are subject to 11% VAT.
The country's legislation contemplates digital currencies for exchanging goods, however, it prohibits their use as a means of payment.
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According to Indonesia's Commodity Futures Trading Regulatory Agency, the total volume of crypto-related transactions in derivatives markets reached 859.4 trillion rupees ($59.8 billion) last year. During 2021, the figure increased more than tenfold.
By the end of 2021, the number of crypto investors in the country reached 11 million, a figure driven mainly by the covid-19 pandemic. According to a study conducted by Jump Capital, Indonesia has become one of the most promising countries for cryptocurrencies.