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The Indonesian tax authority announced plans to tax the income of citizens of the country from trading cryptocurrencies with a tax of 0.1%. The new tax will take effect May 1.
According to Reuters, citing a local official, Hestu Yoga Saksama, Indonesian authorities will introduce a value added tax on cryptocurrencies. However, the tax rate will be only 0.1%.
“Cryptocurrencies are subject to this tax because, as defined by the Department of Commerce, they are commodities. These are not currencies, which is why we tax them,” Hestu Saksama emphasized.
At the moment, there is no clear mechanism for taxing income from cryptocurrency trading in Indonesia. Interestingly, physical goods in Indonesia are taxed at 11%.
Earlier, the Financial Services Authority of Indonesia warned financial institutions that they are strictly prohibited from using, selling and facilitating the trading of digital assets.
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