Indonesian government sets crypto tax at 0.1%

RIYADH: Indonesia will introduce a 0.1 percent crypto tax from May 1, a senior Minister of Finance official has confirmed.

The levy will be charged on capital gains from crypto investments and value-added tax on crypto purchases, Bitcoin.com reported. 

“That’s right, 0.1% PPh (income tax) and 0.1% VAT (for crypto), all of which are final,” Hestu Saksama, director of tax regulations for the Ministry of Finance told CNN Indonesia. 

The Indonesian government has levied income tax and VAT on crypto purchases because the central bank, Bank Indonesia, and the Ministry of Trade consider crypto a commodity, not a means of payment, Saksama said. 

The VAT rate on crypto assets is well below the 11 percent levied on most goods and services in Indonesia, Reuters reported.

It added that the 0.1 percent income tax on capital gains matches that on shares listed on the Indonesian stock exchange.