Indonesia's Crypto Regulator Calls for Tax Reform Ahead of Regulatory Changes

Indonesia's cryptocurrency regulator, the Commodity Futures Trading Supervisory Agency , is advocating for a reevaluation of taxes on digital assets as the country prepares for a regulatory shift in 2025. Currently, cryptocurrencies are taxed as commodities, subject to value-added tax (VAT) and income tax. However, with oversight set to transition to the financial services authority OJK, Bappebti is urging the Finance Minister to review these tax rates, citing the need to provide space for the digital asset industry to mature before imposing significant tax burdens. The industry has criticised current taxes as burdensome, attributing a significant decline in trading volumes to tax-related concerns. While specifics on tax revisions remain unspecified, the industry anticipates potential changes aligned with how stocks are treated, particularly the removal of VAT. The Ministry of Finance has welcomed input from Bappebti and the public, signaling a forthcoming internal discussion on tax issues