Indonesia plans to increase taxes on cryptographic transactions before August 1 as cryptography investment becomes more popular, Reuters reported citing a new regulation of the Ministry of Finance.
Sellers who use exchanges located in the country must pay a 0.21% tax on the transaction value, compared to 0.1%, Reuters said. For sellers who use exchanges abroad, the load increases to 1% from 0.2%. There is some relief: encryption buyers will no longer be subject to value added tax (VAT) under the new rules.
The new measures occur after the total value of the transaction of cryptography in the country’s exchanges more than tripled 650 billion rupees ($ 39.5 billion) in 2024 since the previous year, Reuters said, citing regulator data. Reuters added a total of 20 million people used exchanges last year. Indonesia began to graduate crypto exchanges after approving legislation in 2019.
The country also increased the VAT rate for cryptography mining from 2.2% to 1.1%, Reuters reported.
