coindoo.com
Indonesia is preparing to overhaul how it taxes cryptocurrency activity, marking a significant shift in its approach to digital assets.
Beginning August 1, traders and miners will face higher levies, with stricter measures applied to foreign exchange usage.
The Ministry of Finance confirmed the changes this week, introducing a revised tax framework that hikes transaction taxes and adjusts how crypto mining is treated. The new rules double the tax burden for local sellers, who will now pay 0.21% per transaction—up from 0.1%. Traders using offshore platforms face an even steeper increase, with rates jumping from 0.2% to 1%.
In addition to transaction tax changes, the government is raising the VAT on crypto mining activities from 1.1% to 2.2%. Meanwhile, VAT previously charged to buyers will be eliminated altogether. Authorities also plan to phase out the 0.1% special income tax on mining by 2026, opting instead to apply standard personal or corporate income tax rates to mining profits.
This policy shift signals Indonesia’s growing intention to treat cryptocurrencies more like financial instruments than commodities. While crypto can be freely traded in the country, it still isn’t recognized as a legal means of payment. Nevertheless, interest in the sector has exploded—crypto-related transactions are projected to surpass 650 trillion rupiah (nearly $40 billion) in 2024, with more than 20 million users engaged on regulated exchanges.
Tokocrypto, a major exchange backed by Binance, responded to the new rules by expressing support for the broader regulatory transition. The platform emphasized that clearer rules are a welcome step, but urged authorities to provide a minimum 30-day grace period for compliance to avoid operational hurdles.
The updated tax framework arrives as Indonesia repositions its stance on digital assets, aiming to strike a balance between growing adoption and fiscal oversight.