Indonesia Plans to Tax Crypto from May

Indonesia will start taxing capital gains income from crypto trading and investment at 0.1% from May. A value-added tax of 0.1% will be also imposed on crypto transactions, the government of Indonesia said. As a result, the price of Bitcoin has seen a steep decline in the country over the weekend.

Like other countries, the government in Indonesia s also starting to consider crypto as a commodity in Indonesia, similar to moves seen in India and some other countries. However, Indonesia’s tax is much lower than India’s. The finance minister of India, Nirmala Sitaraman announced on February 1 that the government is planning to tax income from crypto trading and investments at 30%.

Experts believe that it could further affect the crypto ecosystem in India. A significant drop is also reported in crypto trading volumes in India. The founder of CoinSwitch, Ashish Singhal has also said that the lack of tax offset could impact the crypto industry adversely.