The Memorandum of Understanding (MoU) seeks to facilitate the exchange of cryptocurrency-related information among tax authorities and promote compliance with tax obligations. Mekar Satria Utama, a director at the Indonesian Directorate General of Taxes (DGT), emphasized the importance of innovation and collaboration in the MoU, highlighting the need to keep pace with the evolving landscape of financial technologies.
He emphasized the necessity of ensuring fair taxation to support economic growth and fund essential public investments in areas such as infrastructure, education, and healthcare. Australia and Indonesia have previously collaborated on various tax-related initiatives, including the digitization of taxpayer services and the introduction of value-added tax (VAT) for digital goods and services.
The Financial Services Authority (OJK) in Indonesia has been collaborating with financial regulators in Malaysia, Singapore, and Dubai to establish a foundation for crypto regulation. As part of recent regulatory changes, crypto companies wishing to operate in Indonesia will undergo a regulatory sandbox before obtaining a license, a requirement set to take effect in January 2025.
Australia is collaborating with the Organisation for Economic Cooperation and Development (OECD) to create the Crypto-Asset Reporting Framework (CARF), which aims to establish a standardized approach for the global taxation of cryptocurrencies. The goal is to enable the automatic exchange of information about crypto-assets.