Indonesia to double crypto taxes from August 1, treating digital assets as financial products; miners and traders urged to prepare.
Indonesia’s Ministry of Finance has announced a major increase in taxes on cryptocurrency transactions. According to Reuters, the new rules will take effect from August 1, 2025. These amendments will be both at the domestic and foreign platforms and are included in a broader strategy to see the cryptocurrencies as financial assets and not commodities.
Crypto Sales on Foreign Platforms to Face 1% Tax in Indonesia
In the new regulations, the crypto selling tax on the local platforms will rise by 0.1 to 0.21 percent. The rate will increase dramatically to 1% in case one is selling crypto on foreign platforms, as compared to 0.2%. This exceeds the former rate by more than 4 times.
Simultaneously, the value-added tax (VAT) on the mining of cryptocurrencies will increase as well. It will increase to 2.2% as compared to 1.1%. Nevertheless, the buyers will no longer have to pay VAT, which used to range between 0.11 and 0.22 percent.
Also, the special income tax of 0.1 percent on crypto mining will be abolished. As of 2026, revenue obtained through mining is to be taxed according to ordinary personal or corporate taxation policies. This implies that the rate of taxation could be higher on the miners depending on their earnings.
The tax reforms are one of the several changes in the Indonesian regulatory approach to digital assets. The government is transferring the oversight role of cryptocurrencies of Bappebti, the commodity regulator, to OJK, the Financial Services Authority. The shift is supposed to enhance investor protection and provide more clarity on the rules of the crypto industry.
The amendments are as the crypto boom takes place in Indonesia. In 2024, 650 trillion Indonesian Rupiah, or approximately 40 billion USD worth of transactions, were done. This is a 335.9 increase as compared to last year. Domestic crypto sites have also seen an increase in the amount of people who have signed up on their sites, which has now reached over 20 million individuals- more than the number of stock market investors in the country.
Indonesia Urges Crypto Sector to Prepare for Tax Overhaul
Crypto exchange Tokocrypto, which is backed by Binance, welcomed the move. It gives credence to the concept of treating cryptocurrencies as financial assets. Nevertheless, the company has requested the government to grant a one-month grace period to give enterprises time to adapt to new tax regime.
The government has called upon all the crypto traders, platforms, and miners to revise their operations. The Directorate General of Taxes (DJP) has noted that there is a necessity to keep adequate records of all crypto transactions, including the mining rewards and transfers. This will be relevant in making the appropriate tax returns.
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To traders, the choice of platforms is also desirable since there is a difference in the tax rate on domestic and foreign exchanges. In particular, planning in anticipation of changes taking place in taxes is especially necessary in the case of miners since this will be in full effect in 2026.
The government has yet to give a lot of information on the implementation of the new rules. This has left something unsure in the industry. Additional developments will be seen as the implementation date in August draws closer.
