Indonesia Reclassifies Crypto as a “Financial Asset,” Overhauls Tax System

Indonesia will raise taxes on crypto transactions starting August with a 0.21% tax on domestic exchanges and 1% on overseas platforms. The government is reclassifying cryptocurrencies from commodities to financial assets. Crypto mining VAT will rise to 2.2%, and income from mining will be subject to personal or corporate tax rates starting in 2026. Indonesia has announced new tax regulations for Bitcoin and crypto transactions, effective from August 1, 2025. The adjustments aim to increase revenue and align with the growing role of cryptocurrencies as financial instruments, and will see tax rates rise for both local and international crypto exchanges. Higher Tax Rates for Local and Overseas Crypto Exchanges For sellers using domestic exchanges, the tax rate will rise from 0.1% to 0.21% of the transaction value. For transactions on overseas exchanges, which have historically been a grey area, the tax rate will jump from 0.2% to 1%. Interestingly, the Indonesian government has removed the Value Added Tax (VAT) on crypto purchases, which had previously ranged between 0.11% to 0.22% depending on whether the transaction was conducted through a domestic or fo… The post Indonesia Reclassifies Crypto as a “Financial Asset,” Overhauls Tax System appeared first on Coin Edition .

Source: Coin Edition