According to Reuters, Indonesia’s Ministry of Finance announced that tax rates on cryptocurrency transactions will increase from August 1st.
According to new regulations from the Indonesian Ministry of Finance, cryptocurrency transactions will be taxed from August 1, and transactions made on overseas exchanges will be taxed at a higher rate.
The tax rate for sellers on domestic platforms will be increased from 0.1% to 0.21%, while the tax rate for sellers on international platforms will be increased from 0.2% to 1%.
Value Added Tax (VAT) for Bitcoin and Cryptocurrency Mining will also increase from 1.1% to 2.2%.
Meanwhile, the value-added tax (VAT) previously imposed on buyers will also be abolished. Additionally, the current 0.1% special income tax on mining will be phased out by 2026, with mining revenues subject to standard personal or corporate tax rates.
Bitcoin and cryptocurrencies are popular investment options in Southeast Asia’s largest economy, and are legally bought and sold, but cannot be used as payments.
Regulatory data shows that the total transaction value of cryptocurrencies is expected to exceed 650 trillion rupees ($39.67 billion) in 2024 from the previous year.
Binance Backed Exchange Tokocrypto said it welcomed the change reflecting Indonesia’s shift from cryptocurrency classification to financial assets classification, but recommended a minimum of one month period for businesses to follow.
*This is not investment advice.
