According to reporting from Cryptopolitan, the total tax revenue collected from digital economic activities in Indonesia has seen a significant jump due to a surge in cryptocurrency transactions. This comes as digital assets are gaining traction in the country, with more individuals turning to crypto to hedge volatility.
Figures from the Directorate General of Taxes (DJP) at the Ministry of Finance show a steady month-on-month growth in tax revenue contribution from the cryptocurrency industry in June.
According to the DJP, the crypto sector recorded IDR 798.84 billion or USD 49 million between May and June this year. This amount represents 3 percent of the total tax that was collected from digital economic activities in the country, which amounted to IDR 25.88 trillion.
Indonesia Business Post says the increase in crypto industry revenue is reflective of the strong interest from the domestic market.
The DJP has revealed a rapid increase in crypto tax receipts early this year. The first quarter of 2024 as first quarter alone recorded tax collection of IDR 112.93 billion, which came from the crypto market alone.
Cryptopolitan reports that since May 1, 2022, the government has imposed taxes on crypto assets through Minister of Finance Regulation No. 68/PMK.03/2022. This regulation stipulates an income tax (PPh) rate of 0.1 percent on the transaction value for sellers of crypto assets and a value-added tax (PPN) rate of 0.11 percent on the transaction value for buyers of crypto assets.
However, physical crypto assets traders who are not registered with the Commodity Futures Trading Regulatory Agency (Bappebti) pay more as the tax rates are higher at 0.2 percent per PPh and 0.22 percent for PPN.
Bappebti revealed that the total value of crypto transactions amounted to IDR 301.75 trillion during the first half of this year. This represents a year-on-year increase of 354.17 percent compared to IDR 66.44 trillion recorded in 2023.
The number of registered crypto asset customers reached 20.24 million by June 2024. The figure is expected to reach 28 million users by end of 2025, according to Statista.
Source: Cryptopolitan
Stock photo by Alesia Kozik on Pexels
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