The government has officially implemented  a crypto asset or cryptocurrency tax in Indonesia. Crypto asset tax rates are stipulated in PMK No. 68/PMK.03/2022 . Check out a complete review of Bitcoin, ethereum & cryptocurrency taxes in Indonesia in Indonesia as well as crypto tax rates in the world as well as who collects VAT and crypto tax PPh in this article. 

How Are Bitcoin, Ethereum & Other Cryptocurrencies Taxed?

Considering that the number of crypto asset transactions in Indonesia and the world is increasing, and the demand for crypto assets is expanding, are crypto asset transactions such as Bitcoin , Dogecoin , Ethereum , BNB , ORDI , ADA , SOL and other crypto subject to cryptocurrency tax ? 

1. Bitcoin or Cryptocurrency Tax in Indonesia

As in the initial paragraph above, the government officially imposes Bitcoin tax in Indonesia under the legal umbrella of the HPP Law with technical implementing regulations through PMK 68/PMK.03/2022.

At the time this article was written, Bitcoin prices rose 157% in a period of 1 year from early December 2022 to early December 2023. It is not surprising that people consider crypto assets to be a tempting investment instrument.

Director of Counseling, Services and Public Relations (P2Humas) of the Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu), Neilmaldrin Noor, in press release Number SP-29/2022 stated how tax views crypto assets as commodities that meet the criteria as VAT objects.

Who are the Subjects of Crypto Tax in Indonesia?

Referring to Article 19 PMK 68/2022, the subjects of crypto tax or those subject to income tax or crypto PPh are:

• Crypto asset seller
• PMSE Organizer
• Crypto Asset miner (miner)

Meanwhile, the subject of crypto VAT or those subject to VAT on crypto asset transactions are:

• Crypto asset buyers
• Crypto asset seller

What are the cryptocurrency tax rates in Indonesia?

The following is a list of crypto tax rates or crypto VAT and crypto PPh which are based on PMK 68 of 2022 regulations:

• VAT rate for trading crypto assets: 0.11%:

The VAT rate on crypto asset trading is 0.11% of the transaction value in the event that the trading organizer is a local exchange such as Bittime

• VAT rate on crypto asset trading: 0.22% 

The VAT rate on crypto asset trading is 0.22% of the transaction value in the case of trading organizers not by local exchanges such as Binance

• VAT rate on mining services: 1.1% 

The VAT rate for mining services is 1.1% of the crypto asset conversion value and mining services already have asset transaction verification.

• Article 22 Final Income Tax rate on crypto asset trading income: 0.1%

The PPh Article 22 rate for trading crypto assets is 0.1% of the value of the crypto asset (if it is PFAK) imposed on sellers trading crypto assets.

• Article 22 Final Income Tax rate on crypto asset trading income: 0.2% 

Charge Article 22 Income Tax on crypto asset mining of 0.2% of the crypto asset value (if not PFAK).

• Article 22 Final Income Tax rate on crypto asset mining income: 0.1% 

Article 22 Final Income Tax rate on crypto asset mining income is 0.1% of the income received or earned by crypto asset miners, excluding VAT.

Crypto VAT Rates with Certain Amounts

Referring to Article 16 paragraph (1) PMK 68/2022, VAT on the provision of crypto asset transaction verification services and/or crypto asset miner group management services (mining pool) by crypto asset miners as PKP, VAT is collected and deposited in a certain amount.

The specific amount of VAT on the provision of crypto asset transaction verification services and/or crypto asset miner group management services by crypto asset miners is 10% of the VAT rate multiplied by the monetary value of crypto assets received by crypto asset miners, including crypto assets received from crypto asset system (block reward).

Example of Bitcoin Tax Collection simulation by Bittime in accordance with PMK 68/2022

Bitcoin Buy and Sell Transactions on December 5, 2023:

• Transaction Scenario:

  • Customer A has Bitcoin he wants to sell.
  • Customer B wants to buy Bitcoin.
  • Both use the Bittime platform for this transaction.
  • The price per Bitcoin is set at IDR 680,000,000.

• Tax Collection Details:

  • Income Tax (PPh) from Customer A:
    • Customer A sells 0.7 Bitcoin.
    • The income tax charged is 0.1% of the transaction value.
    • Income Tax Calculation: 0.1% x (0.7 Bitcoin x IDR 680,000,000) = IDR 476,000.-
  • Value Added Tax (VAT) from Customer B:
    • VAT of 0.11% of the transaction value is charged to Customer B.
    • VAT calculation: 0.11% x (0.7 Bitcoin x IDR 680,000,000) = IDR 533,600.-

2. Taxation of Bitcoin or Cryptocurrency in the World