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Indonesia Raises Crypto Transaction Taxes, Eliminates Buyer VAT Starting August

The Finance Ministry’s regulation doubles VAT on crypto mining alongside a phased end to a special mining income tax by 2026 under clearer financial asset rules.

Representations of cryptocurrency Bitcoin are placed on a PC motherboard, in this illustration taken June 16, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
Indonesia
Indonesia to double crypto transaction taxes, scrap VAT for buyers starting August 1
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Overview

  • From August 1, sellers on domestic exchanges face a 0.21% tax on transaction value, up from 0.1%, while trades on offshore platforms incur a 1% levy instead of 0.2%.
  • Crypto buyers will no longer pay value-added tax, removing the previous 0.11–0.22% VAT charge on purchases.
  • The VAT on crypto mining increases to 2.2% from 1.1%, and the 0.1% special mining income tax will be phased out in favor of standard personal or corporate rates in 2026.
  • The overhaul builds on January’s reclassification of cryptocurrencies as financial assets and seeks to tap revenue from a market that grew to over 650 trillion rupiah in transaction volume last year.
  • Major exchange Tokocrypto welcomed the clarity but requested a minimum one-month grace period for firms to adjust to the new rules.