In light of recent reviews and compliance assessments, the Tax Department has enacted a temporary policy revision impacting cryptocurrency tax liabilities.

Effective October 7, 2025, the deferred or installment-based payment structure for crypto taxes—previously permitted under Section 4B of the Digital Asset Taxation Act—has been discontinued. Taxpayers are now required to make full payments on all cryptocurrency-related tax obligations at the point of filing.

This decision, though sudden, was deemed necessary due to widespread exploitation of the installment avenue, which has contributed to a spike in non-compliance rates and disrupted revenue collection targets.

The part-payment framework was intended to facilitate smoother compliance and promote voluntary disclosure. However, its misuse has created vulnerabilities in the tax system that require immediate containment.

The part-payment option is expected to return in March 2027, contingent upon the implementation of stronger compliance safeguards and verification mechanisms.

The department remains committed to transparent and fair tax administration. For inquiries or further clarification, please contact our compliance team.