In 2023, an unusual event occurred in Indonesia: despite a substantial price rise, tax receipts from cryptocurrency and Bitcoin transactions fell by 63%.
Despite the fact that Indonesia introduced a new cryptocurrency tax system in 2022, the regime’s income fell by 63% in 2023. Actually, only 467.27 billion Indonesian rupiahs, or $31.7 million, were received in 2023.
Dwi Astuti, the Director of Public Relations at DJP, reportedly told Always Kontan.co.id that exceptional deposits in 2023 totaled a meager 127.66 billion rupiah.
The reasons behind this significant decline have not been revealed, but it is believed that some users and companies have shifted their crypto activity to foreign exchanges due to the numerous complaints from industry operators regarding the implementation of cryptocurrency taxes in 2022, which led to a decline in crypto transaction volumes in Indonesia.
The Ministry of Finance’s rule 68/PMK.03/2022, which came into effect in May 2022, levied a 0.1% income tax and a 0.11% value added tax on all crypto transactions conducted in Indonesia.
Consequently, the focus is on taxes on all crypto transactions, not just Bitcoin or financial gains from selling cryptocurrencies. Taxes of about 0.04% on transactions will also be levied on crypto exchanges beginning in 2022.
Users in Indonesia simply chose fewer transactions once it was revealed in 2023 that they had paid a lot in taxes on crypto transactions conducted in 2022. To further evade local tax authorities, they may have relocated their cryptocurrency operations to offshore platforms. The Indonesian DJP claims that it has amassed 1,110 billion rupiah in cryptocurrency taxes so far.
Also Read: IRS adds a query regarding cryptocurrency income tax to four additional tax forms January 24, 2024
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