Indonesia, which is known to be the biggest and strong economic market in Southeast Asia, is now planning to impose a tax on crypto profits. It was made clear that, yet no official step has been taken regarding the circulating news as financial authorities are still indulged in the dialogues at large and looking into the matter. This particular news spread out in the market on Tuesday, 11th of May 2021, by Neilmaldrin Noor, the spokesperson of the taxation department of Indonesia. He said that imposing a tax on crypto-assets is under the consideration of the financial authorities.
Moreover, he is of the view that if you gain profit via transactions within the state, then that transaction should be gone through proper taxation procedure as a person who gains the profits should pay taxes as well. It is important to note that crypto assets are being treated as commodities instead of payment tools in Indonesia.
Teguh Kurniawan Harmanda, the Chief Operating Officer of the well-established cryptocurrency exchange named Tokocrypto, disclosed last month about the ongoing plan of financial authorities of Indonesia to impose a tax on the crypto earnings. He shared the information regarding the ongoing plan via an interview at CNBC Indonesia that government agencies and industry players have been negotiating about executing the possible way to impose the proposed tax on the profits gained via cryptocurrencies. Harmanda said that the expected amount that can be achieved by crypto profits is 0.05% that is in a smaller amount as compared to the tax imposed on the stock trading, which is currently resting at 0.1.
If we talk about the current status of cryptocurrencies, there has been seen a massive growth of crypto users over the past few couples of months. According to an authentic report released by the biggest cryptocurrency exchange of Indonesia, more than 700,000 registered clients started trading cryptocurrencies in the last four months, and overall more than 3 million customers are utilizing cryptocurrencies inside the country.
Reuters, known to be the world’s biggest news provider platform, recently shared that the financial authorities are contemplating initiating imposing tax on the trading of Bitcoin (BTC) and all the other cryptocurrencies. The spokesperson of the taxation department of Indonesia affirmed the news and elaborated the upcoming plans by disclosing that the proposed agenda is still in negotiating stage with the government officials, and no changes have been implemented by the administrators so far.