Indonesia Shocks Crypto Market with 1% Tax on Overseas Sellers and 2.2% Miner VAT
Indonesia has announced a major overhaul of its cryptocurrency tax policy, hiking levies on overseas sellers and doubling VAT for miners. Starting August 1, these changes aim to close revenue gaps and bring more oversight to the booming crypto market. With over 20 million local traders, how will this impact Bitcoin and Ethereum transactions?
Indonesia Crypto Tax: What’s Changing?
The new tax framework introduces several key changes:
- Overseas crypto sellers face a tax increase from 0.5% to 1%
- Domestic sellers’ rates rise from 0.1% to 0.21%
- Miners will see VAT doubled to 2.2%
- Buyers are now fully exempt from VAT
Why is Indonesia Targeting Overseas Crypto Sellers?
The government aims to reduce offshore competition by eliminating tax advantages foreign platforms previously enjoyed. Domestic exchanges like Tokocrypto and INDODAX argue this levels the playing field.
Impact on Bitcoin and Ethereum Traders
With transaction volumes reaching 650 trillion rupiah in 2024, primarily driven by young traders (18-30 years old) dealing in Bitcoin, Ethereum, and USDT, these changes could significantly affect market activity.
Miner VAT Doubles: What Does This Mean?
The VAT increase to 2.2% for miners comes as Indonesia seeks to capitalize on the growing crypto mining sector while maintaining regulatory oversight.
Frequently Asked Questions
When do the new crypto taxes take effect in Indonesia?
The revised tax framework becomes effective August 1, 2025.
How will the tax changes affect foreign crypto platforms?
Overseas sellers will face higher taxes (1% vs previous 0.5%), potentially making Indonesian platforms more competitive.
Are there any exemptions in the new tax policy?
Yes, buyers are now fully exempt from VAT, which previously ranged between 0.11% and 0.22%.
What’s driving Indonesia’s crypto tax reforms?
The government cites a 63% drop in crypto tax revenue in 2023 despite Bitcoin’s price surge, as traders avoided domestic platforms to evade taxes.
