Indonesia Raises Crypto Tax to 1% as U.S. Moves Toward Zero Capital Gains
Indonesia is rolling out a major update to its cryptocurrency tax framework effective August 1 for both local and international trades.
Quick overview
- Indonesia is updating its cryptocurrency tax framework, increasing domestic transaction tax to 0.21% and international trades to 1%.
- The changes aim to boost state revenue from the growing crypto market, which has over 20 million users and tripled transaction volume in 2024.
- The revised law eliminates VAT for crypto buyers, imposes double VAT on mining, and replaces a special income tax for miners with standard income tax in 2026.
- In contrast, the US is considering eliminating capital gains tax on crypto to encourage adoption and innovation in the digital asset space.
Indonesia is rolling out a major update to its cryptocurrency tax framework effective August 1 for both local and international trades. As reported by Reuters, the new structure imposes a 0.21% tax on domestic crypto transactions, up from 0.1%, and a 1% tax on trades via international exchanges, a fivefold increase from the previous 0.2%.
The move aims to generate more state revenue from the booming crypto industry which now has over 20 million Indonesian users—more than the country’s stock market participants. The crypto transaction volume tripled in 2024, reaching $39.67 billion (650 trillion rupiah), prompting the government to tighten the oversight and capture more taxable value.
Other changes in the revised law include:
- No Value-Added Tax (VAT) for crypto buyers
- Double VAT on mining operations
- Termination of 0.1% special income tax for miners (to be replaced by standard income tax in 2026)
Tokocrypto, backed by Binance, has cautiously welcomed the move. They requested a 30 days transition period for platforms and traders to adapt to the new rules.
The Strategy Behind the Tax Overhaul
Indonesia’s tax revision is part of a broader strategy to strengthen domestic trading ecosystems. By offering a lower tax rate for local platforms, the government hopes to move traders away from international exchanges and bring liquidity back home.
Analysts believe the move is driven by several key goals:
- More government revenue from a growing market
- Level the playing field between local and global platforms
- Boost domestic exchanges adoption
The Ministry of Finance also emphasized the need for a clear and comprehensive legal framework for digital assets, building on Indonesia’s recognition of crypto as a commodity since 2019.
US Takes Opposite Path on Crypto Tax
In contrast to Indonesia’s tax hike, US may be going the other way. As reported by CoinGape, Donald Trump has proposed to eliminate capital gains tax on cryptocurrency holdings for US citizens. The policy is to encourage crypto use for everyday transactions and foster innovation in the domestic digital asset space.
If implemented, this tax exemption could:
- Make US a crypto friendly market for startups
- Boost crypto payments adoption
- Spark global competition in regulatory race
Indonesia wants to tax the boom, US may be betting on long term growth through deregulation. Two different paths, crypto taxation is becoming the key to the future of national digital economies.
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