Indonesia Slaps Higher Crypto Taxes, Drops VAT for Buyers

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Indonesia Slaps Higher Crypto Taxes, Drops VAT for Buyers

Written by Aaron S.,

Editor-In-Chief

Last Updated: July 30, 2025

Key Takeaways

Starting August 1, Indonesia will raise crypto taxes for sellers and miners under new rules;
VAT on crypto mining services increases to 2.2%, and a special 0.1% tax for miners ends in 2026;
Buyers get relief as VAT is removed from certain crypto transactions under the updated framework.

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Indonesia Slaps Higher Crypto Taxes, Drops VAT for Buyers

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Indonesia will introduce a new set of tax rules for digital assets starting August 1.

The updated regulations bring higher taxes for those who sell or mine crypto, while buyers will no longer have to pay value-added tax (VAT).

The Ministry of Finance announced two new rules, No. 50/2025 and No. 53/2025, on July 28. These changes are part of the government’s effort to improve how crypto transactions are taxed.

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One major change is the increase in income tax on sales made through local crypto platforms. The rate has gone up from 0.1% to 0.21%. For trades made on overseas exchanges, the tax rises from 0.2% to 1%.

The VAT on mining services has been raised from 1.1% to 2.2%. Additionally, a 0.1% special income tax that applied to mining will be removed starting in 2026. After that, miners will need to follow the general rules for either personal or corporate income tax.

According to Regulation 50/2025, miners who are registered as taxable businesses are treated like retail traders. Those who do not meet the required standards could face penalties under the country’s tax laws.

At the same time, the government is removing VAT from some types of crypto transactions. Transfers of digital assets that are treated similarly to securities will no longer be taxed under VAT rules.

According to a report by CNBC Indonesia, Finance Minister Sri Mulyani Indrawati stated that these updates are meant to provide clearer rules and keep up with changes in the crypto market.

Meanwhile, the Hong Kong Monetary Authority (HKMA) recently finalized new rules for stablecoin issuers. What do these rules cover? Read the full story.