The authority in Indonesia is reportedly having plans down their pipeline to apply a 0.1% capital gains tax on crypto investments, together with a  value-added tax (VAT) on digital asset transactions, beginning May 1st. 

Specifically, Hestu Yoga Saksama – the representative for Indonesia’s tax office – reportedly revealed that the nation is looking to apply “income tax and VAT” on crypto assets, “because they are a commodity as defined by the Trade Ministry” and “not a currency.” 

The authority is reportedly still taking into consideration the proper measure to complete the implementation of such taxes, but legislation approved in response to the pandemic set up the fundationmetal for collecting revenue on cryptocurrency transactions.

Indonesia’s Commodity Futures Trading Regulatory Agency – alternatively referred to as Bappebti – reportedly issued confirmation that in February this year, crypto transactions in the nation hit the 83.8 trillion rupiah benchmark – around $5.8 billion. 

Furthermore, the number of crypto holders reportedly witnessed an increase of over 11%, from 11.2 million in 2021 to 12.4 million.

Indonesian government officials reportedly took into consideration applying a tax on crypto transactions numerous times prior, regardless of it started issuing warnings for citizens regarding using digital assets for payments as early as 2014.

The Bappebti reportedly granted legal recognition for over 200 cryptocurrencies as commodities, which could be traded, in December 2020 and named 13 exchanges as licensed crypto businesses in February 2021.