This agreement will facilitate the sharing of data about holders of digital assets, providing a stronger framework to prevent tax evasion and ensure compliance with tax laws.
“As the world of cryptocurrency continues to evolve, it is crucial for tax authorities to work together in exchanging valuable information to ensure fair taxation, promote economic growth, and support public investments,” stated a representative from the DGT.
In 2024, the international system for automated exchange of tax information (CRS) is set to be launched. Currently, countries with tax information exchange agreements require financial institutions such as banks, brokers, investment companies, exchanges, and insurers to disclose information about non-residential accounts to their local tax authorities. This information is then shared with the tax authorities of the countries in which the account holders reside.
In late 2020, Indonesian law enforcement reported seizing over 1,300 crypto-mining devices and detaining 26 individuals on suspicion of electricity theft for their mining operations.