Indonesia plans to raise taxes on crypto transactions by Aug. 1 as crypto investing grows more popular, Reuters reported citing a new regulation from the Ministry of Finance.
Sellers using exchanges located in the country will have to pay a 0.21% tax on the transaction value, up from 0.1%, Reuters said. For sellers using overseas exchanges the charge increases to 1% from 0.2%. There is some relief: Crypto buyers will no longer be subject to value added tax (VAT) under the new rules.
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The new measures come after the total transaction value of crypto on the country’s exchanges more than tripled to 650 trillion rupiah ($39.5 billion) in 2024 from the year before, Reuters said, citing regulator data. A total of 20 million people used the exchanges last year, Reuters added. Indonesia started licensing crypto exchanges after it passed legislation in 2019.
The country also increased the VAT rate for mining crypto from 2.2% to 1.1%, Reuters reported.
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