- Indonesia increases crypto tax for local and foreign sellers
- Domestic exchanges will pay 0.21%, up from 0.1%
- Overseas exchanges face a steeper 1% tax rate
Starting August 1, Indonesia will enforce higher taxes on cryptocurrency transactions. The country’s tax authority has revised the Value Added Tax (VAT) and income tax rates for crypto trades, with significant increases for both domestic and overseas platforms.
The new structure will see local exchanges taxed at 0.21%, more than double the current 0.1% rate. Meanwhile, foreign exchanges will bear a heavier burden, facing a 1% tax, up from just 0.2%. This move aims to boost tax revenue from the growing crypto sector while enforcing better compliance and clarity in regulation .
Why the Sudden Tax Hike?
Indonesia has been trying to balance crypto adoption with regulatory oversight. Officials have expressed concern over unregulated trading, particularly on offshore platforms. By increasing the tax on overseas exchanges fivefold, the government likely hopes to push more users toward registered domestic exchanges.
Tax officials stated that the adjustments were based on market activity and reflect the need for updated rules since crypto was classified as a commodity in 2022. The decision also aligns with broader fiscal efforts to monitor and profit from digital assets more efficiently.
Impact on Traders and Exchanges
For Indonesian crypto users, this means more cost per transaction. Traders using international platforms could see a major dent in profits due to the higher 1% fee. Domestic platforms might still offer better conditions but will also see increased tax costs, potentially passed on to users through fees.
The global crypto community is watching closely. As more countries adopt strict tax frameworks, Indonesia’s model could influence other emerging markets in Southeast Asia.
Read Also :
- Hungary Criminalizes Unauthorized Crypto Exchanges
- $1.5B in Bitcoin Shorts at Risk Above $120K
