Indonesian authorities are planning to tax the profits generated from transactions with cryptocurrencies, reports Reuters with reference to the representative of Indonesia’s tax office Neilmaldrin Noor.

According to him, a specific mechanism for taxing cryptocurrencies is under discussion.

“It is important to know that… if there is a profit or capital gain generated from a transaction, the profit is an object of income tax. So the tax payer who receives capital gain has to pay the tax and report it,” Neilmaldrin said.

Indonesian legislation equates digital currencies with commodities but prohibits their use as a means of payment.

Recall, according to a study by The Block, in October 2020, Indonesia accounted for 4.3% of the total traffic of bitcoin exchanges.