Get Ready! Owners Of Cryptocurrencies In Indonesia Will Be Taxed

Tax targets cryptocurrency trading in Indonesia (Bitcoinist)

JAKARTA – The Government of Indonesia will implement tax rules for cryptocurrency transactions. The cause is due to a surge in local investors soaring in the country, along with the increase in the value of crypto-money assets

In the midst of the recovery from the pandemic, countries in Southeast Asia are trying to shore up the country's revenues, one of which is with a plan to withdraw taxes on the crypto-trade.

"It's important to know that... if there is a profit or capital gain resulting from a transaction, the profit becomes an object of income tax," said Neilmaldrin Noor as a spokesman for the Indonesian tax office, as quoted by Reuters.

However, the tax withdrawal plan is only in discussion. Neilmaldrin also added that the beneficiaries of the capital gains must pay taxes and report them.

Indonesia itself still prohibits cryptocurrencies as a means of payment, but legalizes it as an investment asset. The government also allows trading of crypto assets.

The largest crypto asset trading platform in Indonesia, Indodax itself revealed that to date its platform users have had 3 million users. In fact, at the beginning of the year Indodax users only reached 2.3 million. This is a very high increase.

In addition, the Indonesian Financial Services Authority also warns crypto investors that cryptocurrencies are very unstable and have high volatility.