Indonesia Doubles Crypto Taxes, Eliminates VAT on Purchases

Key Points

• Starting August 1, Indonesia will double taxes on crypto transactions and eliminate VAT for buyers.
• Crypto assets are now classified as financial assets, aligning with stock market instruments.

Indonesia is set to implement significant changes to its crypto regulations, doubling taxes on crypto transactions and removing the value-added tax (VAT) for buyers starting August 1, according to Reuters.

Under the new regulations from the Ministry of Finance:

• Domestic exchanges: Sellers will face a 0.21% transaction tax, increased from 0.1%.
• Overseas platforms: Users will see a more significant increase to 1% from the previous 0.2%.

The government is also adjusting taxes on crypto mining activities:

• VAT will double to 2.2% from 1.1%.
• The 0.1% special income tax will be eliminated.
• Starting in 2026, mining income will be taxed at standard personal or corporate rates.

Tokocrypto, a Binance-backed exchange, has welcomed these regulatory changes but has requested a one-month grace period for companies to adjust to the new rules. They also emphasized the importance of consistent enforcement across all foreign platforms.

These tax revisions follow Indonesia's decision to reclassify crypto assets from commodities to financial assets, bringing them closer to regulations applied to stock market instruments.

Indonesia has emerged as one of Southeast Asia’s largest crypto markets, with over 20 million users and total transaction volume exceeding 650 trillion rupiah (approximately $40 billion) in 2024. This volume more than triples the figures from the previous year, highlighting the market's rapid growth.

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