The Indonesian Ministry of Finance has announced increased tax rates on cryptocurrency transactions starting August 1. The new rates will affect both domestic and international platforms.
New Tax Rates for Cryptocurrencies
According to the new regulations, the tax rate for sales of cryptocurrencies on domestic exchanges will increase from 0.1% to 0.21%, while the rate for international platforms will rise from 0.2% to 1%. Moreover, VAT on cryptocurrency transactions will come into effect on the same date.
Changes in Mining and Sales Taxes
The value-added tax (VAT) on Bitcoin and cryptocurrency mining will also rise from 1.1% to 2.2%. At the same time, the previously imposed VAT on cryptocurrency purchases will be abolished, and the current 0.1% special income tax on mining will be phased out by 2026.
Reactions from Crypto Exchanges and Predictions
The Binance-backed exchange Tokocrypto welcomed the changes, noting that they reflect Indonesia's shift to classifying cryptocurrencies as financial assets. However, the exchange recommended a minimum one-month compliance period for companies. According to projections, the total transaction value of cryptocurrencies in Indonesia is expected to exceed 650 trillion rupiah ($39.67 billion) in 2024.
The increase in tax rates on cryptocurrencies in Indonesia is linked to the growing interest in the sector and a volatile economic landscape. This may impact the future development and regulation of the cryptocurrency market in the country.
