Indonesia levies 0.1% VAT, income tax on crypto

Indonesia will tax income from crypto trading at 0.1% and impose an additional value added tax (VAT) of 0.1% on crypto transactions starting May.

Fast facts

• The tax rate is lower than the 11% tax that the Indonesian government levies on other goods and services in the country.

• Indonesians won’t be allowed to use cryptocurrencies as a means of payment but can trade as commodities. 

• Indonesia’s crypto taxation is being viewed as one of the lowest in the world, with crypto investors comparing the country’s stance with other regulation-friendly countries like Dubai and Singapore. 
• Investors have also taken to social media to contrast it with the extremely high taxation structure in neighboring countries like India, where tax on crypto income is as high as 30%.