ANALYSIS OF INTER-COUNTRY TAX TREATMENT AS A RECOMMENDATION FOR TAX TREATMENT OF CRYPTOCURRENCIES IN INDONESIA

This study aims to analyze the tax treatment of cryptocurrencies in several countries as a basis for recommendations for formulating tax treatment of cryptocurrencies in Indonesia. The analysis applied a case study approach with aqualitative methodology. The primary data analyzed in this study are in the form of interviews with sources from the Directorate General of Taxes (DGT), tax consultants, and tax payers, while the secondary data are in the form of documents of tax treatment in Singapore, the United States, and Australia. The results show that profits from cryptocurrency transactions are objects of income tax, which a regenerally subject to normal income tax or capital gains tax rates depending on the purpose of ownership. In some countries, the supply of cryptocurrency is notsubject to VAT (GST). This study recommends the DGT to set out specific rulesthat explain the definition, recognition, and valuation of cryptocurrencies in Indonesia. Based on the analysis, it is found that final income tax and normal income tax can be imposed on cryptocurrency transactions based on where the transaction is made. Meanwhile, the supply of cryptocurrencies in Indonesia should be exempt from VAT.