According to Reuters, Indonesia is considering plans to tax cryptocurrency trades due to the increased popularity among local investors.
The Southeast Asian country has been seeking to shore up state revenues amid the Coronavirus pandemic. Tax office spokesperson, Neilmaldrin Noor said, a tax scheme for cryptocurrency is at the stage of discussion.
“It is important to know that if there is a profit or capital gain generated from transaction, the profit is an object of Income Tax,” Neilmaldrin said.
“So the tax payer who receives capital gain has to pay the tax and report it,” he said.
Southeast Asia’s greatest economy bans utilization of cryptocurrencies as payment instruments yet permits them as a tradable commodity.
Indodax, a crypto exchange platform claims to be the biggest in Indonesia. And also said that by April number of active members hit 3 million by the time bitcoin reached record high. Start of the year, around 2.3 million members rose at Indodax rose.
Indonesia Financial Services Authority has cautioned investors about the danger of investing in cryptocurrency. And also said that it doesn’t have essential worth and costs and are profoundly unstable.