Increased Taxes on Cryptocurrency Trading Implemented in Indonesia, Focus on Foreign Exchange Platforms
In a significant move for the Indonesian financial sector, the Directorate General of Taxes (Direktorat Jenderal Pajak) has announced that higher cryptocurrency transaction taxes will be imposed starting August 1, 2025. This decision, which was reported by Reuters on Wednesday, aims to regulate and generate revenue from the rapidly growing cryptocurrency market in the country.
Currently, Indonesia boasts more than 20 million crypto exchange users, surpassing the number of stock market investors in the country. This surge in crypto adoption has led to a tripling of transaction values in the Indonesian cryptocurrency market in 2024, reaching over 650 trillion rupiah ($39.67 billion).
Under the new regulations, sellers on domestic crypto exchanges will pay a 0.21% tax on transaction value, up from the previous 0.1% rate. Sellers using overseas exchanges, on the other hand, will face a tax rate of 1%, a significant increase from the prior 0.2% rate.
Cryptocurrencies are legal for trading in Indonesia but cannot be used as payment methods under current regulations. In line with this, crypto buyers in Indonesia no longer pay value-added tax (VAT), as the new system abolishes the previous rates of 0.11-0.22%.
Starting in 2026, crypto mining income will be taxed under standard personal or corporate tax rates, instead of the current 0.1% special income tax rate. This change is expected to provide a more streamlined approach to taxing crypto mining activities.
The increased VAT rates for crypto transactions also apply to crypto mining, rising to 2.2% from the previous 1.1%. These new tax rates are aimed at generating revenue and regulating the cryptocurrency market in Indonesia.
In conclusion, the Indonesian government's decision to impose higher cryptocurrency transaction taxes is a significant step towards regulating and generating revenue from the rapidly growing crypto market in the country. The new regulations, which will take effect on August 1, 2025, are expected to provide a more streamlined approach to taxing crypto mining activities and trading on domestic and overseas exchanges.
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