Indonesia Raises Crypto Taxes With 0.21% for Domestic, 1% for Overseas

Indonesia is set to introduce higher tax rates on cryptocurrency trades beginning August 1, following a newly issued regulation by the finance ministry. The update targets both local and international exchanges, with significantly steeper rates applied to transactions processed through overseas platforms.

Domestic Versus Foreign Platforms

Under the revised rules, individuals selling digital assets through domestic platforms will now pay a 0.21% levy on each trade, a rise from the previous 0.1%. In contrast, those using foreign-based platforms will be subject to a 1% charge, a sharp increase from the former 0.2% rate.

The disparity signals the government’s effort to encourage the use of local exchanges while tightening oversight on offshore operations. On the buyer’s end, there is some relief. It scrapped the value-added tax (VAT) that previously ranged from 0.11% to 0.22% entirely, meaning purchasers will no longer incur VAT when acquiring crypto assets.

Indonesia Raises Mining and Income Tax

The updated policy also revises tax rules related to cryptocurrency mining. It doubled the VAT applied to mining operations to 2.2%, up from the previous rate of 1.1%. Additionally, it also eliminates a special 0.1% income tax that had previously applied to profits generated from mining.

Beginning in 2026, the country will tax income from mining under existing personal or corporate income tax regimes, depending on the miner’s classification. These changes reflect a broader reclassification of crypto assets from commodities to financial instruments, aligning the treatment of digital assets more closely with traditional investment products like stocks.

Industry Reaction

Tokocrypto, a Binance-affiliated digital asset exchange, expressed support for the revised policies, citing the government’s recognition of cryptocurrencies as financial investments rather than tradable goods. However, the company urged authorities to allow a grace period of at least one month to enable businesses to align with the new requirements.

The firm also stressed the need for robust enforcement of taxes on trades made via foreign platforms, a move seen as crucial in ensuring fairness and boosting local compliance. Moreover, Tokocrypto advocated for fiscal incentives to nurture innovation within the digital asset ecosystem, especially as crypto transactions will now face higher tax rates than capital gains from stock investments.