Indonesia mulling changes to dual taxation on crypto

The Commodity Futures Trading Regulatory Agency of Indonesia has reportedly asked the Ministry of Finance to assess its position on cryptocurrency taxation.

According to a recent local report, the executive staff members at Indonesia’s Commodity Futures Trading Regulatory Agency, also known as Bappebti, have requested to reassess the government-imposed value-added tax (VAT) of 0.11% on each crypto transaction in Indonesia, as well as the 0.1% income tax on crypto.

Tirta Karma Senjaya, head of the Bureau of Market Development and Development at Bappebti explained the reason behind this is that crypto is on track to become an integral part of Indonesia's broader economy in the near future.

"Because later on, cryptocurrencies will become part of the financial sector, we expect a commitment from the Directorate General of Taxes to evaluate these taxes."

The report further noted that total government revenue from crypto taxes in Indonesia reached the equivalent of approximately $2.49 million in January.

"In January 2024, the revenue from cryptocurrency taxes reached Rp39.13 billion," the report noted.

Although these crypto taxes have been in effect in Indonesia for nearly two years, Senjaya stated that they should undergo an annual review similar to other tax laws.

"The evaluation is necessary because this regulation has been in place for more than a year. Typically, taxes undergo evaluation annually," the report stated.