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

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."