Indonesia is implementing revised cryptocurrency tax regulations effective August 1, 2025, introducing higher levies for miners and sellers while eliminating value-added tax (VAT) for certain crypto transfers. The changes aim to refine the tax framework governing digital asset activities amid growing market participation.
Income tax on cryptocurrency sales will increase significantly across exchange platforms. Domestic transactions face a rate hike from 0.1% to 0.21%, while sales on foreign exchanges will now be subject to a new 1% tax rate. These adjustments target increased revenue collection from trading activities.
Mining operations encounter substantially higher costs as the VAT rate doubles from 1.1% to 2.2%. Additionally, the special income tax applied to mining will be phased out entirely by 2026.
Notably, VAT exemptions now apply to transfers of crypto assets classified as securities, removing the previous 0.11%-0.22% burden on buyers. This relief measure intends to stimulate trading activity by reducing transaction costs for investors.
The overhaul reflects Indonesia’s ongoing effort to balance regulatory oversight with market development in the rapidly evolving cryptocurrency sector.