Indonesia’s tax authority is studying a proposal to tax cryptocurrency trading as interest in digital currencies gains momentum among local investors.
Directorate General of Taxes spokesman Neilmaldrin Noor was quoted by Reuters as saying, “If there is a profit or capital gain generated from a transaction, the profit is an object of income tax. So the taxpayer who receives capital gain has to pay the tax and report it.”
Indonesia, Southeast Asia’s biggest economy, does not allow the use of cryptocurrencies as legal tender, trading them as commodities is permitted.
The report also cited data from cryptocurrency exchange platform Indodax, which said its active membership rose to 3 million in April from 2.3 million at the start of 2021 as increases in the price of Bitcoin and other digital currencies fueled demand for them among investors.
Indonesia’s finance sector regulator has previously cautioned investors against the risks of investing in cryptocurrencies, pointing to their lack of underlying value and price volatility.
