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Recently Southeast Asian Country has decided to impose a tax on crypto, liable to be deducted at the source of crypto transactions
Indonesia became the latest Asian Country which announced its intentions to charge taxes under the scheme on all the transactions in crypto and tax on income that capital gains would generate after the crypto investments, as reported by Reuters. The Country has chosen to impose a value-added tax of 0.1%.
The imposed tax would be applicable to deduct at the source of the transaction on every crypto transaction in the Country. The new system will come into action from 1st May, as per the government official Hestu Yoga Saksama cited in reports.
As the popularity of cryptocurrencies and activities like crypto trading is increasing, numerous countries are either imposing or planning to impose tax regimes on crypto. The imposing of taxes is seen as a step towards regulating the new-age virtual assets industry.
In Indonesia, crypto adoption has grown significantly after the end of the Covid-19 pandemic, which reported as many as 11 million Indonesian individuals holding at least one cryptocurrency by the end of 2021. The total value of transactions in cryptocurrencies estimated by The Commodity Futures Trading Regulatory Agency in the commodity futures market achieved a significant amount of 859.4 trillion, which is $59.9 billion in 2021. The leap was almost ten times in comparison with the transactions in 2020.
Indonesia is the second country in the Asian region to introduce a tax regime on crypto assets in recent times. Earlier than the southeast Asian Country, India had also implemented a tax scheme regarding crypto, which on 1st April came into effect. There was a detailed discussion regarding the crypto ban or not for months. The Indian government ultimately decided to go with the heavy tax imposed on crypto. At the time, one politician even said that the high tax implementation was meant to discourage the people who are investing or involved in crypto. In comparison to India, imposing taxes on Crypto in Indonesia would be very lenient and more in a softer size, leading it towards local crypto space growth.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
