Government Will Withdraw Tax From Crypto Transactions, Investors Can Escape To El Salvador?

Sri Mulyani discusses the application of taxes from crypto transactions (AntaraNews)

JAKARTA – The increasing number of crypto asset investments in Indonesia has prompted the government to apply taxes on crypto currency transactions. The government is also rumored to have drawn up a policy regarding the withdrawal of cryptocurrency taxes.

In the plan, Finance Minister Sri Mulyani said that her party had coordinated with a number of other institutions to discuss the application of appropriate taxes.

"We are in the process with the Governor (Perry Warjiyo) and the Financial Services Authority (OJK) discussing this," Sri Mulyani said at the Commission XI meeting on Thursday, June 10.

He also said that he is currently discussing whether crypto money is included in what items so that the tax formulation can be designed properly. Sri Mulyani also observed the initial steps for taxation and appropriate regulations.

"Later on, the speed of legislation with our technology will need to be synchronized, because otherwise Indonesia will also be left behind with such enormous changes," he said.

Determining tax rates from crypto transactions is not an easy thing. The same is true for other countries. "If we look at this, it is also because it is systemic," he explained.

In addition, Suryo Utomo as Director General of Taxes at the Ministry of Finance revealed that his party was understanding more about the cryptocurrency. The reason is, crypto money is a new thing, therefore taxation schemes must be discussed comprehensively.

“For this cryptocurrency itself, we are continuing to explore what this crypto business model looks like. Because if we talk about the tax law, or the simplest law, the Income Tax Law and the VAT Law. The VAT Law will definitely be imposed on goods and services that enter the customs area," said Suryo.

El Salvador, on the other hand, was the first country to accept payments and financial transactions using Bitcoin and other crypto assets. Even the country will also waive taxes for investors in El Salvador.

Based on a Bitcoin News report, the President of El Salvador, Nayib Bukele even revealed that the government will not tax any profits made by crypto investors in Paraguay. He also plans to provide permanent residency for crypto entrepreneurs who want to move to Latin American countries.