Crypto Taxation in Indonesia

Other developed countries have already legalized crypto asset trading. Tax imposition also varies in each country. Meanwhile, in Indonesia crypto assets are regulated in Minister of Finance Article 68 of 2022 concerning the Imposition of Value Added Tax (VAT) and Income Tax (PPh) on Crypto Asset Trading Transactions.

VAT is imposed on the delivery of intangible Taxable Goods (BKP) in the form of crypto assets, Taxable Services (JKP) in the form of services providing electronic means used in trading crypto assets and JKP in the form of crypto asset verification services or management services (mining pool) by miners crypto assets.

This handover includes handing over crypto assets within the customs area via electronic means organized by Electronic Trading System (PMSE) organizers. This delivery takes the form of buying and selling crypto assets, exchanging with other crypto assets or exchanging with assets other than crypto. VAT payable on this delivery is collected, deposited and reported by the PMSE organizer.(Trading Through Electronic System)

Income Tax for sellers of registered crypto assets, the tax that must be paid is 0.1% of the transaction value, while VAT is 0.11% of the transaction value. Meanwhile, for those who have not registered with Bappebti, the tax levy is higher, namely Article21 Income Tax 0.2% and VAT of 0.22%.

Income from crypto asset transactions received by PMSE operators acting on their own behalf is subject to Article 21 Income Tax 21 in accordance with tax provisions. There are privileges for PMSE organizers, PMSE organizers who reside or are located in a customs area who have been appointed as VAT collectors can also be appointed as income tax collectors.

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