Crypto Taxation Regulations in Indonesia will be enforced from May 01, 2022. There are two types of taxes, namely VAT and Income tax that must be paid by crypto taxpayers. The income tax rate is 0.1% while the VAT rate is 0.11%. Value Added Tax will be imposed on buying and selling, swapping or exchanging crypto for goods or services.
Example: Calculation of Income Tax, VAT and SWAP
I have 0.5 Bitcoin on a local exchange and I intend to sell Bitcoin, Mr XX will buy my Bitcoin at a market price of $42k per BTC.
Then I will be subject to Income tax of = 0.1% X (0.5 BTC X $42,000) = $22
Meanwhile, Mr XX (the Buyer) will be subject to 11% VAT with the following calculation: 1%X11% X (0.5 X$42,000) = $24.2
Crypto Swaps
I will exchange 0.5 BTC to 6.64 Ether to Mr XX. Then the tax calculation is:
I have to pay Income Tax of: 0.1% x (0.5 BTC X $42,000) = $22
Meanwhile Mr XX will be subject to VAT of: 1%X11% X (0.5 X$42,000) = $24.2
Exchange Rate: 1USD = 14,360 IDR
Currently crypto tax regulations in Indonesia are a hot topic of discussion both on websites and among crypto users in Indonesia. Perhaps the main impact there are crypto traders with large volumes. because they have to calculate blockchain transaction fees, as well as fees from exchanges, bank transfers, etc., while every trading transaction does not always guarantee a profit. So it is feared that if crypto tax regulations come into effect in early May 2022, many crypto users will move to foreign crypto exchanges, which are VAT-free.
Example: Calculation of Income Tax, VAT and SWAP
I have 0.5 Bitcoin on a local exchange and I intend to sell Bitcoin, Mr XX will buy my Bitcoin at a market price of $42k per BTC.
Then I will be subject to Income tax of = 0.1% X (0.5 BTC X $42,000) = $22
Meanwhile, Mr XX (the Buyer) will be subject to 11% VAT with the following calculation: 1%X11% X (0.5 X$42,000) = $24.2
Crypto Swaps
I will exchange 0.5 BTC to 6.64 Ether to Mr XX. Then the tax calculation is:
I have to pay Income Tax of: 0.1% x (0.5 BTC X $42,000) = $22
Meanwhile Mr XX will be subject to VAT of: 1%X11% X (0.5 X$42,000) = $24.2
Exchange Rate: 1USD = 14,360 IDR
Currently crypto tax regulations in Indonesia are a hot topic of discussion both on websites and among crypto users in Indonesia. Perhaps the main impact there are crypto traders with large volumes. because they have to calculate blockchain transaction fees, as well as fees from exchanges, bank transfers, etc., while every trading transaction does not always guarantee a profit. So it is feared that if crypto tax regulations come into effect in early May 2022, many crypto users will move to foreign crypto exchanges, which are VAT-free.
