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On April 4, according to people familiar with the matter, US Republicans are considering creating a new tax bracket for people with incomes of $1 million or more to offset part of the cost of the tax bill, which is in stark contrast to the Republican Partys decades-long opposition to tax increases. People familiar with the matter said the new top tax rate would be between 39% and 40%. Trump administration officials and allies on Capitol Hill are beginning to draft a tax plan, hoping to pass it in the coming months. In addition, Republicans are also considering raising the top tax rate on incomes over $626,350 from the current 37% to 39.6%, which means the top tax rate will return to the level set by former President Obama.US President Trump: Britain is happy with US tariffs.Foreign central banks held U.S. Treasuries worth -$1.76 billion in the week ending March 27, compared with -$14.896 billion in the previous week.Trump trade adviser Navarro: Tariffs are to protect the American people and increase revenue.April 4th, as a new wave of tariffs upends global markets, the dollar has wiped out all of its gains since Trump won the election last November. "The dollar bear market has arrived and its roaring," said Paresh Upadhyaya, director of fixed income and currency strategy at Amundi. He added that the dollar could fall 10% this year as the United States "teeters on the brink of recession." This is in stark contrast to earlier this year, when Trumps policy plans such as tax cuts and tariffs were seen as a reason to bet on a rebound in the dollar. In February, U.S. Treasury Secretary Bessant said Trumps policies were "completely consistent" with a strong dollar, confirming the governments strong dollar stance. "We may be in the early stages of a structural sell-off in the dollar," said Ed Al-Hussainy, strategist at Columbia Threadneedle Investment.

Indonesia Announces 0.1% Crypto VAT & Capital Gains Tax

Skylar Shaw

Apr 06, 2022 11:09


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On crypto transactions and investments, Indonesia imposed a 0.1 percent VAT and capital gains tax.

The taxes will take effect on May 1st.


The community has recently reacted negatively to cryptocurrency taxes.


According to a report by Reuters, Indonesia will begin collecting a Value Added Tax (VAT) and an income tax on capital gains on crypto asset-based transactions and investments on May 1. In both circumstances, the tax is set at 0.1 percent.

But why is there a tax?

Since the beginning of the Covid-19 outbreak, Indonesia has seen a tremendous increase in crypto use, which is why a tax is unsurprising. "Crypto assets would be subject to VAT since they are a commodity as defined by the commerce ministry," Hestu Yoga Saksama, an Indonesian tax officer, said during a press conference. We will apply income tax and VAT since they are not a currency."


Although the 0.1 VAT tax on crypto assets is substantially lower than the country's 11 percent VAT on other products and services.


Furthermore, the fact that these taxes will be imposed on the total transaction amount is another reason why crypto transactions have just a 0.1 percent income tax on capital gains.


Given that Indonesia executed crypto transactions worth approximately $5.8 billion (83.8 trillion Indonesian Rupiah) in February alone, even a 0.1 percent tax would net the government $5.8 million, or around 83.3 billion Indonesian Rupiah.


Besides, this is still excellent news since it indicates the country's growing embrace of cryptocurrency.

This is because the Tajdid Central Leadership (PP) Muhammadiyah, along with the Tarjih Assembly, issued a fatwa against cryptocurrency just two months ago.


The fatwa declared Bitcoin and other cryptos to be "haram," citing the volatility of crypto assets as the explanation.


Even though cryptocurrencies aren't currently recognized as a means of payment, it's a significant step forward for the country.

Around the Globe

While Indonesia is dealing with cryptocurrency in its own way, India followed suit by enacting a 30% crypto tax earlier this month, which took effect yesterday (April 1).


The government has been concerned about cryptocurrency for more than five years, from the prohibition to the lifting of the ban to now this 30% tax.


Furthermore, the government is delaying the development of a regulatory framework for digital assets until a worldwide census on the subject is conducted.


While Indian individuals have already expressed their dissatisfaction with the policy, it does not appear that they will be able to effect any change very soon.

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