In Jakarta on April 22, tax representatives from Indonesia and Australia reached an accord to set up a system for exchanging information about cryptocurrencies.
On April 23, this new agreement was introduced with the goal of enhancing the process of identifying assets subject to taxation in both countries. Furthermore, it encourages the efficient exchange of relevant cryptocurrency data and info between tax departments. Lastly, it covers the importance of adhering to tax responsibilities.
Mekar Satria Utama, Indonesian DGT director, highlighted that the MoU underlines the significance of innovative partnerships between tax agencies. Such collaborations are essential to remain competitive in the fast-paced global financial technology arena, according to him.
“Although crypto assets are a recent development, it’s vital that fair taxation continues, as this is important for fostering economic expansion and generating funds for vital public projects such as infrastructure, education, and healthcare,” Utama explained in a release.
Australian and Indonesian tax departments have previously joined forces on various projects. Some aspects of their cooperation align with the Digital Government Technology (DGT) agenda, including the development of a digital tax assistant to enhance taxpayer services.
Additionally, the two organizations worked together to implement taxes on digital goods and services, specifically Value-Added Tax (VAT).
Indonesia is actively working on creating regulations for the cryptocurrency industry. Additionally, they have initiated collaborations with external entities from other nations and organizations to establish a robust framework for digital currencies.
Indonesia’s Financial Services Authority (OJK) takes the helm of these initiatives, collaborating with regulatory bodies in Malaysia, Singapore, and Dubai to establish a framework for cryptocurrency regulations.
Starting next January 2025, crypto businesses aiming to function legally in Indonesia must initially pass through a regulatory sandbox overseen by the Financial Services Authority (OJK). This new requirement was recently announced and will go into effect at that time. The OJK’s decision to regulate the cryptocurrency sector aligns with this change.
In Indonesia, entities offering cryptocurrency services without undergoing a sandbox evaluation beforehand will be considered as operating illegally.
Australia, like many other nations, collaborates with the Organisation for Economic Cooperation and Development (OECD) in establishing the Crypto-Asset Reporting Framework (CARF). This framework facilitates the automatic sharing of information regarding crypto-assets. The ultimate goal is to implement a unified system for taxing cryptocurrencies globally, making taxation processes more efficient and reducing instances of crypto earnings tax evasion.
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2024-04-24 12:08