Indonesia Considers Levying Tax on Crypto Profits

The country is seeking to bolster revenue amid COVID-19.

AccessTimeIconMay 11, 2021 at 8:40 a.m. UTC
Updated Sep 14, 2021 at 12:53 p.m. UTC

Indonesia is considering a plan to tax profits on crypto trading in response to its increasing popularity.

  • Neilmaldrin Noor, an Indonesian tax official, said Tuesday that the country is examining ways to bolster tax revenue amid the COVID-19 pandemic, Reuters reported.
  • “If there is a profit or capital gain generated from a transaction, the profit is an object of income tax,” Neilmaldrin said.
  • The country’s central bank announced in January 2018 that crypto is “not a legitimate instrument of payment,” though trading is permitted.
  • There are 4.45 million crypto investors in the country, more than twice the number of equity investors, according to Indonesia's commodity futures trading regulatory agency, Bappebti.

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