Indonesia To Impose 0.1% Crypto Tax Starting In May - page 2.

Oceat

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Quote from: Scripture on April 02, 2022, 06:16:25 PM

Quote from: Lizzylove1 on April 02, 2022, 03:54:55 PM

You can't tax every crypto trader and holders. How do you tax people trading defi on decentralized exchanges and selling on P2P using escrow. It will really be difficult. Currently, my bank doesn't know the source of my credit, it's not tied to commodity. Censoring crypto is very complex.

For now they can’t, and they will focus more on centralized platform to know every single person who are into cryprocurrency and that’s where taxation begins. Sooner or later they will require everyone to report crypto profits, this could be more good than to ban cryptocurrency at all, we will deal with this soon.

Good luck with their government if they could do that since in the first place they don't want crypto to be used a means of payment. There are many ways to avoid being in the list of centralization so I wonder how did their government plan all of this making exceptions and consideration.

The tax isn't that big and anyone who are holding won't get taxed. Once you remove yourself from being on the list of centralization especially crypto holders you are safe from taxation and also don't make it obvious if you want to trade with someone and there's no way on earth they would know someone is trading with x person.

Scripture

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Quote from: Lizzylove1 on April 02, 2022, 03:54:55 PM

You can't tax every crypto trader and holders. How do you tax people trading defi on decentralized exchanges and selling on P2P using escrow. It will really be difficult. Currently, my bank doesn't know the source of my credit, it's not tied to commodity. Censoring crypto is very complex.

For now they can’t, and they will focus more on centralized platform to know every single person who are into cryprocurrency and that’s where taxation begins. Sooner or later they will require everyone to report crypto profits, this could be more good than to ban cryptocurrency at all, we will deal with this soon.

lalabotax

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Quote from: tvplus006 on April 02, 2022, 12:30:55 PM

This decision of the Ministry of Commerce of Indonesia is caused by the fact that they do not want to recognize cryptocurrency as a digital kind of money. It is possible that it is advantageous for them to consider cryptocurrency as a commodity, since in this case they can get additional income by charging value-added tax.

Crypto cannot be a legal currency in Indonesia because the laws only allow Rupiah as our legal currency. So, there is nothing to do with the policy made by our ministry of commerce. Please, check again the laws related to legal currency in Indonesia. Even, dollars cannot be a legal currency in Indonesia.

About the advantage to allow it as a digital commodity, it is true that the government is possible to earn taxes from this decision. But the tax object must make sense, it shouldn't intervene in any crypto exchanges in Indonesia. Trading activity in an exchange cannot be taxed, it is the own business of the exchange. The tax may be possible when the crypto holder wants to withdraw their asset to the banks.

Yogee

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Quote from: hugeblack on April 02, 2022, 05:06:47 AM

Quote from: Coinshots on April 02, 2022, 03:26:56 AM

"Crypto assets will be subject to VAT because they are a commodity as defined by the trade ministry. They are not a currency," the official, Hestu Yoga Saksama, told a media briefing. "So we will impose income tax and VAT."

As I understand it, this is not a legislation specific to cryptocurrencies, but rather because of the nature of the classification of these currencies as “commodity” and therefore a value-added tax was imposed on all commodities?
So nothing new happened,

The basis was last year's passed tax law which was aimed at raising more funds for economic recovery. This allows the Government to imposed VAT and Income Tax on capital gains for trading commodities BTC and other crypto has been recognized as a commodity since 2019.

Quote from: Lizzylove1 on April 02, 2022, 03:54:55 PM

You can't tax every crypto trader and holders. How do you tax people trading defi on decentralized exchanges and selling on P2P using escrow. It will really be difficult. Currently, my bank doesn't know the source of my credit, it's not tied to commodity. Censoring crypto is very complex.

Implementing rules and regulations are still being drafted but you can already assume that they will focus on licensed and regulated crypto exchanges in Indonesia. They can try to expand on DEX and P2P trades after that.

STT

legendary

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What nonsense, this is why free trade cannot exist in many countries of the world because they want to make a global asset some benefit to their national fiscal budget and that is not how a free trade beneficiary scenario works out. You cannot honestly tax currencies and even commodities should not be dealt with in that way unless you are purely dealing with your own countrymen such as petrol usage relates to pollution perhaps.
Aviation fuel is excluded from taxes by order of the Geneva convention for example because to do so would restrict international travel and the freedom of those people, sadly other usable global items are not protected in this way but it will be to Indonesia's loss imo.

macson

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why don't they recognize bitcoin as a currency only but choose to only put it in the commodity category, this is so funny imo. i don't follow developments about the Indonesian economy, but what i hear is that it's a developing country, they should follow in the footsteps of El Salvador, making bitcoin a legal tender so that their economy can improve.

Lizzylove1

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Christ The King

You can't tax every crypto trader and holders. How do you tax people trading defi on decentralized exchanges and selling on P2P using escrow. It will really be difficult. Currently, my bank doesn't know the source of my credit, it's not tied to commodity. Censoring crypto is very complex.

AmoreJaz

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Quote from: hugeblack on April 02, 2022, 05:06:47 AM

Quote from: Coinshots on April 02, 2022, 03:26:56 AM

"Crypto assets will be subject to VAT because they are a commodity as defined by the trade ministry. They are not a currency," the official, Hestu Yoga Saksama, told a media briefing. "So we will impose income tax and VAT."

As I understand it, this is not a legislation specific to cryptocurrencies, but rather because of the nature of the classification of these currencies as “commodity” and therefore a value-added tax was imposed on all commodities?
So nothing new happened, and the tax is not too expensive and you can avoid it if you keep hodling bitcoins and don't sell them.

that's right! they classified it under commodity, hence, imposing this VAT. and that is why they can't use it as payment method because they are not distinguishing this as digital currency that can be alternative for payment method. in the near future, they may change its classification once they start accepting crypto as payment method.
and yes, unlike other countries that are imposing tax on crypto, their percentage is quite low. which is good for their small crypto users. the country is not very rich so it won't help if they will charge high tax to its small users.

tvplus006

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To the Moon

Quote from: Coinshots on April 02, 2022, 03:26:56 AM

"Crypto assets will be subject to VAT because they are a commodity as defined by the trade ministry. They are not a currency," the official, Hestu Yoga Saksama, told a media briefing. "So we will impose income tax and VAT."

This decision of the Ministry of Commerce of Indonesia is caused by the fact that they do not want to recognize cryptocurrency as a digital kind of money. It is possible that it is advantageous for them to consider cryptocurrency as a commodity, since in this case they can get additional income by charging value-added tax.

hugeblack

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Quote from: Coinshots on April 02, 2022, 03:26:56 AM

"Crypto assets will be subject to VAT because they are a commodity as defined by the trade ministry. They are not a currency," the official, Hestu Yoga Saksama, told a media briefing. "So we will impose income tax and VAT."

As I understand it, this is not a legislation specific to cryptocurrencies, but rather because of the nature of the classification of these currencies as “commodity” and therefore a value-added tax was imposed on all commodities?
So nothing new happened, and the tax is not too expensive and you can avoid it if you keep hodling bitcoins and don't sell them.

Coinshots

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Indonesia plans to charge value-added tax (VAT) on crypto asset transactions and an income tax on capital gains from such investments at 0.1% each.

Indonesia plans to charge value-added tax (VAT) on crypto asset transactions and an income tax on capital gains from such investments at 0.1% each, starting from May 1, a tax official said on Friday, amid a boom in digital asset trading.

Interest in digital assets has surged in Southeast Asia's largest economy during the COVID-19 pandemic, with the number of crypto asset holders jumping to 11 million by the end of 2021.

Last year's total crypto asset transactions in commodity futures markets reached 859.4 trillion rupiah ($59.8 billion), up more than 10 times from 2020's transaction value, data from the Commodity Futures Trading Regulatory Agency showed.

Indonesians are allowed to trade crypto assets as a commodity but not to use them as a means of payment.

"Crypto assets will be subject to VAT because they are a commodity as defined by the trade ministry. They are not a currency," the official, Hestu Yoga Saksama, told a media briefing. "So we will impose income tax and VAT."

Source: https://www.coinshots.com/news/indonesia-to-impose-vat-income-tax-on-crypto-assets-from-may

Topic: Indonesia To Impose 0.1% Crypto Tax Starting In May - page 2. (Read 245 times)