Thailand Imposes Tax Rules for Crypto, What about Indonesia?

Crypto News - Posted on 20 February 2024 Reading time 5 minutes

DIGIVESTASI - Thailand has taken a progressive step in taxation regulations related to digital assets by eliminating the 7% value-added tax (VAT) on cryptocurrency trading transactions. This decision aims to support and encourage the growth of the digital asset industry in the country.

 

The VAT exemption targets virtual currency exchanges, brokers, and virtual currency platforms that operate under the close supervision of the Securities and Exchange Commission of Thailand. By implementing this policy from January 1, 2024, Thailand is demonstrating its strong commitment to the development of the digital economy.

 

This move is not the first, as Thailand has already exempted VAT on the transfer of crypto assets in May 2023. This tax-free policy is expected to revitalize Thailand's digital asset market and strengthen the country's position as a hub for digital asset innovation and trading in the region.

 

Compare this to Indonesia where the government still imposes a VAT of 0.11% and an individual income tax (PPh) of 0.1% on transactions made through a registered crypto exchange or dealer. This situation raises concerns for those involved in Indonesia's cryptocurrency industry.

 

ToKoCrypto CEO Yudno Lawis has proposed some important changes to the crypto tax system in Indonesia to ensure that the country continues to implement regulations that support the growth of the crypto ecosystem. "We are optimistic about the development of virtual currency tax policy in Thailand.

 

We hope that Indonesia can take similar steps to create more friendly and competitive crypto regulations. "This is expected to encourage innovation and growth of the domestic cryptocurrency industry and provide legal clarity that can increase investor and user confidence," he said.

 

He said that Indonesia should return to only taxing capital gains and change the VAT rules, considering that crypto assets fall into the category of financial assets or securities, not goods, based on the Financial Sector Development and Strengthening Law (PPSK), I suggest that it be done. Furthermore, he also proposed reducing the current tax rate to improve competitiveness and not hinder the development of Indonesia's cryptocurrency industry.

 

Meanwhile, Vice Chairman of the Indonesian Cryptocurrency Traders Association (Aspakurindo) explained that the capital gains regime only taxes the profit from the sale of crypto assets, not the entire transaction. This approach is considered more fair and efficient, as investors are only taxed if they gain actual economic benefits. "This can encourage more people to invest in crypto assets without having to worry about high taxes on every transaction," he said. Yud explained that this system will make it easier to file taxes because investors only need to report transactions that generate profits.

 

The introduction of such a taxation system is expected to improve tax transparency and compliance in the cryptocurrency space. Thailand's policy to eliminate value-added tax on cryptocurrency transactions is an example of how friendly regulations can help countries make the transition to a more inclusive and innovative digital economy.

 

Indonesia, with its huge digital economy potential, can take inspiration from Thailand to create a more enabling environment for digital economic growth, including in the digital assets sector. "With the right regulatory measures, virtual currencies can become one of the key drivers of Indonesia's digital economy, opening up new opportunities and increasing financial inclusion across the region," he emphasized.


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Source: indotelko.com

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