Indonesia, Australia Authorities Ink Crypto Taxation Deal
Indonesia and Australia’s taxation authorities on Monday signed a pact in Jakarta to establish a crypto information-sharing arrangement.
The purpose of this agreement, announced Tuesday, is to improve identifying assets potentially subject to taxation in either nation. It is also meant to facilitate a more efficient exchange of crypto-related data and information between the tax authorities. Further, it addresses adherence to tax responsibilities.
According to Mekar Satria Utama, a director at the Indonesian Directorate General of Taxes (DGT), the MoU underscores the importance of innovation and collaboration amongst tax authorities. This approach is crucial to keep pace with the rapid advancements in the global landscape of financial technologies, he added.
“While crypto assets are relatively new, the need to ensure equitable taxation remains essential to promote economic growth and provide revenue for crucial public investments in areas like infrastructure, education and healthcare,” Utama said.
A history of collaboration exists between the Australian Taxation Office (ATO) and the Indonesian DGT. This partnership has included various DGT priorities. It includes aspects like the digitization of taxpayer services through the introduction of a virtual tax assistant.
Additionally, the two entities have worked together on the implementation of value-added tax (VAT) for digital goods and services.
Indonesia has been proactively formulating regulations for the crypto sector. It has also fostered collaborations with foreign countries and international entities to craft a strong crypto framework.
Spearheading these initiatives is Indonesia’s Financial Services Authority (OJK), which has been collaborating with financial regulators
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