Yesterday, two stories about income taxes in Indonesia and Hungary broke.
Indonesia intends to levy a tax on the proceeds of cryptocurrency transactions. According to a Tax Administration official, no final decision has been taken. The government debates how much income tax should be levied and what regions should be covered.
This information was released a few weeks ago. The local regulator Bappebti, which regulates commodity futures trading, became involved in trading income taxes.
The government intends to automate the tax collection process. The tax would have to be imposed on trading on 13 local crypto exchanges, with Bappebti in charge of the operation.
Hungary’s people are more fortunate. This country’s income tax on cryptocurrency transactions would be cut in half by 2022. This is done to increase cryptocurrency adoption in the nation. The Ministry of Finance made the details public on Tuesday.
It is worth noting that in Hungary, income from cryptocurrency trading and other digital asset-related activities is taxed at 9%. A further 2% is charged in the form of corporate tax.
Mining is taxed at a different rate than other industries. Local miners pay a 15% income tax, and another 22% of their earnings must go toward constructing the crypto sphere.
Suppose the income tax is reduced by half. This will boost the activity of cryptocurrency investors.