The Indonesian General Directorate of Taxation (DGT) and the Australian Taxation Office (ATO) have signed a memorandum of understanding on a mechanism for exchanging information on cryptocurrencies regarding persons and entities whose tax liabilities may arise in both jurisdictions.

In accordance with the agreement, the tax authorities of the two countries will exchange data on holders of digital assets to prevent evasion of taxes to the state budget.

“Although the collection of income from cryptocurrency activities is a relatively new area of ​​​​tax supervision, the need to exchange information is important for the sake of fair taxation, promoting economic growth of countries and public investment,” said a DGT representative.

The international automated tax exchange system (CRS) was launched in 2024. Under current rules, countries that have signed tax information exchange agreements oblige banks, brokers, investment companies, exchanges and insurers to send information about non-resident accounts to local tax authorities. Which, in turn, transmit information to the tax authorities of those countries where the account holders are residents.

Late last year, Indonesian law enforcement authorities reported seizing more than 1,300 crypto-mining devices and detaining 26 local residents on suspicion of stealing electricity for mining purposes.