Indonesia plans to raise the tax on crypto transactions by August 1, when Crypto Investing becomes more popular, Reuters reported, citing a new regulation from the Ministry of Finance.
Sellers who use exchanges located in the country have to pay a 0.21% tax on the transaction value up from 0.1%, Reuters said. For sellers using overseas exchange, the tax increases to 1% from 0.2%. There is some relief: Crypto buyers will no longer be subject to VAT tax (VAT) in accordance with the new rules.
The new measures come after the overall transaction value of crypto on the country’s exchange more than tripled to 650 trillion Rupiah ($ 39.5 billion) in 2024 from the previous year, Reuters said, citing regulator data. A total of 20 million people used the exchange last year, Reuters added. Indonesia began licensing crypto exchanges after it passed legislation in 2019.
The country also increased the VAT rate for Mining Crypto from 2.2% to 1.1%, Reported Reuters.
