Recently, there has been a lot of discussion about crypto asset taxes in Indonesia. Where it gets mixed reactions from the community and many experts in Indonesia.

Later, as of May 1, 2022, the crypto asset tax will be officially enforced with two types of taxes that will be imposed, namely income tax (PPH) and value added tax (VAT/PPN) which are 0.1 percent each per transaction.

*Crypto asset tax issues in Indonesia.

Indeed, many countries have started planning to collect taxes on crypto transactions, including the latest ones in Indonesia and India, while in other countries it is still free.

In my opinion, the tax policy is indeed legal as a whole, but perhaps it takes more consideration of the amount of tax imposed. considering the costs that have not yet been present, including exchange, clearing and bank depository fees.

Of course, this will be very burdensome for users and will have the potential to migrate users to similar crypto services that exist abroad. Because with a total tax of 0.2 percent (PPH and VAT/PPN) the possibility to move will certainly be greater.

Tax calculations should not be calculated only from the percentage, but with this tax it can indeed attract Indonesian users who currently trade a lot on international exchanges.

The imposition of taxes that are too large will certainly determine transaction activities. the imposition of reasonable taxes will revive the crypto asset trading industry in Indonesia.

The most appropriate example is like in India, where the tax rate reaches 30 percent and has been effective since April 1, 2022. If the taxation is beyond reasonable, it will automatically close the gates of the crypto asset industry.

*Countries support Crypto asset Industry?

With the implementation of this tax, it will make users in Indonesia more confident in investing in crypto assets. This means that the government really cares about this industry.

The tax amount for crypto assets must be reasonable, considering that these assets are still new and the related industry is still developing. even if it is still taxed as a major contribution to the state.

Naturally, the imposition of taxes is at a value of 0.05 percent, so it will be able to turn on crypto asset transactions in Indonesia. where the imposition of fees on users must be seen from the fees charged in the international market. because this is not a fixed number and should be able to be adjusted over time.

*Similar reaction of market participants.

Almost all of them said that the imposition of taxes on crypto assets could improve the Indonesian economy. From various points of view, this is a good effort made by the government and is a natural thing considering crypto assets in Indonesia are considered as commodities.

However, there needs to be a discussion between industry players and the government in order to determine the appropriate tax rate. that is, if the value of the tax rate is too high, it will likely have an impact on the attractiveness which will certainly decrease.

And, I hope the tax is appropriate so that crypto really continues to grow especially in Indonesia.

I love crypto especially Bitcoincash☘️