Indonesia to hike crypto transaction taxes starting August: Reuters
Quick Take
- Indonesia will raise taxes on cryptocurrency transactions starting Aug. 1, with higher rates for trades via foreign exchanges.
- Seller tax on domestic crypto exchanges will increase from 0.1% to 0.21%; on foreign exchanges, it will rise from 0.2% to 1%.
Indonesia is set to implement higher taxes on cryptocurrency transactions starting Aug. 1, including a steep increase on trades conducted through overseas exchanges, Reuters reported Wednesday.
Under the new framework mandated by the country's finance ministry, crypto sellers using domestic crypto exchanges will face a 0.21% tax on transaction values, doubling the previous rate of 0.1%. Foreign exchange users will encounter even higher costs, with seller taxes jumping from 0.2% to 1% — a fivefold increase.
The changes bring some relief for buyers, however, as they will no longer be subject to value-added tax, according to the report. Previously, purchasers paid VAT rates ranging from 0.11% to 0.22%.
Meanwhile, crypto mining operations will also see increased tax burdens, with VAT rates rising to 2.2% from 1.1%. Additionally, a special 0.1% income tax rate for mining activities is set to be eliminated in 2026, subjecting mining income to standard personal or corporate tax rates instead.
Indonesia appears to be attracting interest from overseas exchanges as its market gains appeal. Hong Kong's OSL, for example, announced last month a $15 million acquisition deal for a 90% stake in Evergreen Crest, which runs an Indonesian crypto exchange.
"Indonesia possesses key attributes conducive to growth in this sector, including a substantial and youthful demographic, robust economic growth fundamentals, and a rapidly increasing rate of cryptocurrency adoption," OSL said in a regulatory filing last month.
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