Indonesian Authorities Consider Imposing Tax on Crypto Profits

e_abrams

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Dec 11, 2020
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Another major FX and crypto player is considering introducing taxes on crypto derivatives trading- Indonesia. There are more than 4.5 million crypto traders alone in the country, which has significantly boosted both sides of the sector: legit and shady.

Reuters recently reported that the local government has come into this position after the pandemic has “drained” a major portion of the country’s tax collection. According to Neilmaldrin Noor, part of Indonesia’s tax collection service, the government is en route to strengthening its tax collection practices, including the introduction of a crypto trading commission.

However, the taxation of crypto-derived profits is not an easy endeavor. Indonesia is not the first to consider this and is not the first to be slowed down by a number of obstacles. One of the major blockades is that there is not really a proper way of collecting crypto tax. What most authorities do is collect capital gains from crypto trading profit.

Taxing crypto is also faced with the challenge of users not reporting crypto profits. Because cryptocurrencies are decentralized, many investors trade on offshore exchanges and proceed to receive payouts in crypto coins which enables them to hide the total profits from tax agencies.

Back in 2018, the Indonesian bank banned locals from using cryptocurrencies as modes of payment but did not disallow users to trade in crypto.

Indonesia is currently the largest economy in Southeast Asia, and as such has gathered an enormous amount of interest in the crypto industry.
Source
Where there is money, there are taxes, I guess. :D
 

Dora_WalletInvestor

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Aug 17, 2020
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This is an interesting topic, and as far as I know, nobody has been able to tax crypto that is on your exchange account or in your crypto wallet - at least in places I've known you only get taxed when you withdraw your profits into a bank account.