The Indonesian Ministry of Finance has announced plans to increase tax rates on cryptocurrency transactions starting August 1, 2025. This decision will affect transactions on both domestic and international platforms.
Increase in Cryptocurrency Tax Rates
Under the new regulation, tax for sellers on local platforms will rise to 0.21%, while international platforms will face a 1% tax. Additionally, value-added tax (VAT) will no longer apply to cryptocurrency buyers, simplifying tax compliance. However, mining services will see VAT doubled to 2.2%, affecting their cost structures.
Reclassification of Cryptocurrency as a Financial Asset
The new changes indicate a reclassification of cryptocurrency as a financial asset. This aligns Indonesia with international standards seen in countries like Singapore and Hong Kong. Previously, starting from May 2022, cryptocurrency was classified as a commodity.
Impact on Domestic and Overseas Platforms
Industry groups such as the Indonesia Crypto Network are calling for gradual adaptation and necessary oversight of overseas platforms. The impact of the new taxes may reflect on assets like BTC, ETH, USDT, and DOGE, drawing attention to major local exchanges focusing on compliance with new requirements.
The measures in Indonesia's cryptocurrency tax policy aim to increase revenue and create a clearer regulatory environment. However, a consideration of the adjustment period for market participants will be essential for successful implementation.
