Indonesia Significantly Raises 'Cryptocurrency Transaction Tax'… Mining Tax Also Doubled

JOON HYOUNG LEE

Summary

Indonesia's Ministry of Finance announced that from the 1st of next month, domestic and overseas cryptocurrency transaction taxes will be raised to 0.21% and 1%, respectively.
The previous cryptocurrency transaction VAT has been abolished, leading to changes in the transaction cost structure.
Additionally, the cryptocurrency mining tax will be doubled, and the special income tax will be abolished next year, with general income or corporate tax being applied.

Indonesia will increase the tax rates applied to cryptocurrency transactions starting next month.

According to Reuters on the 30th (local time), Indonesia's Ministry of Finance will raise the cryptocurrency transaction tax starting from the 1st of next month. Specifically, when using domestic cryptocurrency exchanges, the tax rate will rise by 0.11 percentage points, from the previous 0.1% to 0.21%. For overseas cryptocurrency exchanges, the rate will increase from the previous 0.2% to 1%, an increase of 0.8 percentage points.

The previously applied value-added tax (VAT) on cryptocurrency transactions will be abolished. Reuters reported, "According to previous regulations, cryptocurrency buyers had to pay 0.11–0.22% VAT at the time of transaction."

The mining tax on cryptocurrency will also be increased. First, the VAT rate applied to cryptocurrency mining will double, from the previous 1.1% to 2.2%. In addition, the special income tax rate of 0.1% applied to cryptocurrency mining will be abolished starting next year. Reuters stated that "personal income tax or corporate tax rates will be applied to (cryptocurrency mining) income."

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