Indonesian crypto seller tax soars 110% but gov’t gives buyers VAT-free trading

Indonesia’s Ministry of Finance has introduced sweeping changes to its crypto tax policy, significantly increasing the Indonesian crypto seller tax while removing value-added tax (VAT) for buyers.

The updated regulations, No. 50/2025 and No. 53/2025, take effect on August 1, 2025, and mark a pivotal shift in how digital assets are taxed in Southeast Asia’s largest economy.

The revised rules raise income tax on domestic crypto sales from 0.1% to 0.21%, while foreign exchange transactions face a steeper hike—from 0.2% to 1%. Meanwhile, crypto miners will see their VAT rate double from 1.1% to 2.2%, and a special 0.1% mining tax will be replaced by standard income tax rates in 2026.

“To provide legal certainty for crypto asset trading and adapt to market developments, we must adjust tax provisions,” said Finance Minister Sri Mulyani Indrawati in the official document.

Higher Indonesian crypto seller tax targets traders and miners

The most significant change under the new policy is the increased Indonesian crypto seller tax, which now applies a tiered structure based on transaction origin. Domestic sellers face a 0.21% levy, while those using offshore platforms will pay nearly five times more at 1%.

Miners, previously taxed at 1.1%, will now be subject to a 2.2% VAT, with additional income tax obligations kicking in next year. The regulations explicitly state that miners failing to comply will face penalties under general tax law.

“Crypto asset miners confirmed as taxable entrepreneurs will be treated as retail traders,” states Regulation 50/2025. “Those who don’t comply will face sanctions as per tax procedure laws.”

The move aligns with Indonesia’s efforts to tighten oversight of its growing crypto sector, which saw $8.5 billion in trading volume in 2024, according to government data.

VAT exemption for buyers: A relief or a trade-off?

While sellers and miners brace for higher costs, buyers get a reprieve—the ministry has eliminated VAT on crypto purchases, previously set at 0.11%–0.22%. Articles 343 and 354, which mandated the tax, were removed from Regulation 53/2025.

The exemption aims to encourage retail participation, but critics argue it disproportionately benefits buyers while squeezing small-scale traders and miners.

“This policy favors investors but could push local sellers to offshore platforms,” said Andi Putra, a Jakarta-based crypto analyst.

The decision reflects a balancing act: incentivizing adoption while ensuring tax revenue from the Indonesian crypto seller tax and mining sectors.

Industry reactions and global comparisons

The mixed adjustments have drawn polarized responses. Proponents argue the VAT removal could boost Indonesia’s crypto adoption, while opponents warn the Indonesian crypto seller tax hikes may stifle domestic trading activity.

Comparisons are being drawn to neighboring Thailand and Malaysia, which impose flat capital gains taxes on crypto profits rather than transaction-based levies.

“Indonesia’s approach is more fragmented,” noted Maria Tan, a Singapore-based tax consultant. “The lack of a unified framework could create compliance challenges.”

With the regulations set to take effect next month, exchanges and miners are scrambling to adapt. The long-term impact on Indonesia’s crypto economy—ranked 6th in global adoption by Chainalysis—remains uncertain.

Key takeaways

• Indonesian crypto seller tax rises to 0.21% (domestic) and 1% (foreign).

• Miners face doubled VAT (2.2%) and new income tax rules in 2026.

• Buyers exempted from VAT, potentially boosting retail participation.

• Policy mirrors global trends of tightening crypto taxation but with uneven burdens.