Indonesia Considers Levying Tax on Crypto Profits

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.

See also: Binance Invests in Regulated Indonesian Crypto Exchange