Tokocrypto Compares Thailand And Indonesia's New Crypto Tax Regulations, More Efficient?

Illustration of crypto assets. (Photo: Unsplash)

JAKARTA - Thailand has taken progressive steps in tax regulations related to digital assets by eliminating Value Added Tax (VAT) 7 percent for crypto trading transactions.

Effective since January 1, 2024, this VAT exemption is expected to encourage more activity in the Thai digital asset market and strengthen the country's position as a center for innovation and digital asset trading in the region.

This policy certainly gets the attention of crypto industry players in Indonesia. Where in Indonesia currently still implements VAT of 0.11 percent and Income Tax (PPh) of 0.1 percent for transactions made through exchanges or registered crypto asset traders.

As one of the actors in the crypto industry in Indonesia, Tokocrypto CEO Yudhono Rawis also emphasized that the government should not be left behind in implementing regulations that support the growth of the crypto ecosystem.

Yudho hopes that the Indonesian government can follow similar steps such as Thailand to create more friendly and competitive crypto regulations.

"This is expected to encourage innovation and growth of the domestic crypto industry, as well as provide legal clarity that can increase the trust of investors and users," said Yudho in his statement, quoted on Sunday, February 18.

For this reason, Yudho suggested that Indonesia could return to only impose taxes on capital gains.

"The capital gain scheme only imposes taxes on profits obtained from the sale of crypto assets, and not on each transaction," Yudho explained further.

Yudho considers that this approach can be fairer and more efficient, because investors are only taxed when they actually receive economic benefits.

In addition, he also proposed a reduction in the current tax amount, in order to be more competitive and not hinder the development of the crypto industry in Indonesia.