<span style="font-weight: 400">As reported by <a href="https://www.reuters.com/business/finance/indonesia-impose-vat-income-tax-crypto-assets-may-2022-04-01/">Reuters</a>, the Indonesian government officials have been planning to charge taxes to the holders of crypto-assets from May 1. The Polygon Network news organization shared the developments in Indonesia concerning crypto on Twitter.</span>

https://twitter.com/Polygon_Times/status/1510107504579031042
<h2><span style="font-weight: 400">Why Tax?</span></h2>
<span style="font-weight: 400">Indonesia has decided to charge 0.1 percent Value Added Tax (VAT) and income tax for transactions and investments. However, crypto enthusiasts must not be as surprised by the implementation of taxes in Indonesia. </span>

<span style="font-weight: 400">As the country has been observing an enormous growth in the adoption of cryptocurrency. In addition, a spokesperson of the Indonesian tax office also explained that as termed by the Trade Ministry, crypto assets are a commodity rather than a currency.</span>
<h2><span style="font-weight: 400">Is Charging Taxes A Good Start?</span></h2>
<span style="font-weight: 400">One must keep in mind that, unlike goods and services that have an 11 percent tax imposed, crypto assets are significantly charged lesser. Additionally, a February 2022 report by the country’s Commodity Futures Trading Regulatory Agency (Bappebti) states that crypto transactions conducted in the country grew to $5.8 billion.</span>

<span style="font-weight: 400">These pieces of pro-crypto news in Indonesia signify how crypto is widely being accepted in the country and across the globe as well. On April 1, the <a href="https://www.cryptoknowmics.com/news/india-will-began-taxing-crypto-from-april-1/">Indian government</a> also imposed a 30 percent crypto tax. </span>

<span style="font-weight: 400">In conclusion, although Indonesia has a long way to go with cryptocurrencies being accepted as a mode of payment. However, the current developments in terms of digital assets are huge when on one side the Tajdid Central Leadership has been calling cryptocurrency “haram.”</span>

Indonesian Crypto Holders Under Income Tax's Radar

Indonesia has decided to charge 0.1 percent Value Added Tax (VAT) and income tax for transactions and investments for owners of crypto-assets from May 1.

Priyanka is an active crypto enthusiast. Having graduated with a BA in Journalism and Mass Communication, she is a passionate content writer with a strong understanding of financial content. She has been writing on crypto and blockchain-related topics for the last three years and is an active trader.

Indonesian Crypto Holders Under Income Tax's Radar

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