Indonesia plans to charge 0.1% VAT, income tax on cryptocurrencies - Reuters

As interest in cryptocurrencies continues takes hold, Indonesia is looking to impose a value-added tax ("VAT") on digital asset transactions and an income tax on capital gains at a rate of 0.1%, Reuters reported Friday, citing a tax official. Note that those in Indonesia are allowed to trade cryptos as a commodity but not to use as a means of payment. Recall in early March when Thailand also blocked the use of cryptos as a means of payment effective Friday. "Crypto assets will be subject to VAT because they are a commodity as defined by the trade ministry. They are not a currency," Reuters reported, citing tax official Hestu Yoga Saksama. Meanwhile, the government is still working on implementing regulation for the taxes, the official added. Looking at intraday crypto price action, bitcoin (BTC-USD +1.8%) is rising slightly to $46.5K and ethereum (ETH-USD +5.2%) is climbing to $3.44K. At the beginning of February,