Crypto Tax in Indonesia: Based on Minister of Finance Ministerial Decree PMK 68/2022

Since May 1, 2022, new regulations regarding taxes on crypto transactions have been implemented in Indonesia, based on Decree of the Minister of Finance of the Republic of Indonesia No. 68/PMK.03/2022 (PMK 68/2022). This regulation brings significant changes in the procedures for imposing Value Added Tax (VAT) and Income Tax (PPh) on crypto asset trading transactions. This article will discuss in depth the implications of PMK 68/2022 for crypto market players in Indonesia.

Value Added Tax (VAT) on Crypto Transactions

PMK 68/2022 establishes new rules for imposing VAT on buyers or recipients of crypto assets. The amount of tax charged varies depending on the location of the transaction:

• Transactions on Bappebti Registered Exchanges : For transactions carried out on crypto exchanges registered with the Commodity Futures Trading Supervisory Agency (Bappebti) such as Bittime , the VAT rate charged is 0.11% of the transaction value.
• Transactions on Exchanges Not Registered with Bappebti : If crypto transactions are carried out on platforms or exchanges that are not registered with Bappebti or exchanges outside Indonesia such as Binance, Bybit, kucoin, gate.io, coinbase, the VAT rate applied increases to 0.22% of the value transaction.

Income Tax (PPh) for Crypto Asset Sellers

PMK 68/2022 also regulates the PPh that must be paid by the seller or party handing over crypto assets. Just like VAT, PPh rates also vary:

• Sales on CoFTRA Registered Exchanges: For transactions that occur on CoFTRA registered exchanges, sellers of crypto assets will be subject to PPh of 0.1% of the trading value.
• Sales on Exchanges That Are Not Registered with CoFTRA: If sales are made on platforms that are not registered with CoFTRA, the PPh rate is increased to 0.2% of the trading value.

Check Price :

Impact and Implications of PMK 68/2022

The implementation of PMK 68/2022 has a significant impact on crypto market players in Indonesia. The imposition of this tax not only affects buyers and sellers of crypto assets but also provides legal and regulatory clarity in the growing crypto market. Apart from that, this regulation also encourages transparency and security in crypto transactions and contributes to state revenues from the digital economic sector.

The Importance of Compliance with Tax Regulations

For crypto market players in Indonesia, understanding and complying with PMK 68/2022 is essential. Compliance with tax regulations not only avoids legal risks but also shows social responsibility and contribution to the country's economy.

Is Crypto Taxable in Indonesia?

Yes, cryptocurrency/crypto asset transactions are taxable in Indonesia. The Indonesian government through the Directorate General of Taxes (DJP) has determined that crypto transactions are tax objects. This indicates the government's commitment to regulating these digital assets so that they contribute to state revenues.

How Much Is Crypto Transaction Tax?

Crypto tax rate is the final tax for VAT for purchasing crypto assets from the total gross value of transactions & PPH for selling crypto assets from the total gross value of transactions 0.11% & 0.1% respectively.  Taxes on crypto transactions in Indonesia are still in the development and adjustment stage. However, in general, these taxes can include Income Tax (PPh) and Value Added Tax (VAT). The amount of this tax depends on regulations issued by the government and can change over time.

Crypto Tax on Indodax, Bittime, Tokocrypto & Pintu

Indodax, Bittime, Tokocrypto & Pintu as crypto exchange platforms in Indonesia, are also subject to applicable tax regulations. Taxes applied on the exchange are in accordance with Indonesian tax regulations, with PPh being charged at 0.1% for every crypto asset purchase transaction and VAT at 0.11% for every crypto asset seller transaction.

Are crypto capital gains taxable?

Yes, capital gains from crypto transactions are also subject to tax. This means that if there is a profit or gain from the difference between the selling price and the buying price of the crypto asset, then the profit will be subject to income tax. This is a common practice in asset taxation, not only in Indonesia but also in many other countries.

Why is crypto taxable?

The imposition of a tax on crypto in Indonesia is based on the principle that any economic profits obtained by taxpayers from transactions must be taxed. This is in accordance with the global tax principle that tax is the taxpayer's contribution to his income. Crypto, as an asset with profit potential, is considered eligible for taxation.

Differences between Crypto Tax and Stock Tax

Taxes on crypto and shares in Indonesia have several differences. The final share tax rate is 0.1% of the total gross value of share sales transactions. Well, the good news is, we don't need to bother calculating and paying this tax ourselves because the Stock Exchange and securities brokers will take care of it when the share sale transaction is completed. Taxes on shares usually include dividend tax and capital gains tax. Meanwhile, for crypto, the tax rate is also final tax but is subject to VAT for purchases of crypto assets from the total gross value of transactions and PPH for sales of crypto assets from the total gross value of transactions, respectively 0.11% and 0.1%.

Conclusion

Taxes on crypto transactions in Indonesia are an important step in digital asset regulation. Even though it is still developing, clarity in this regulation is important to provide legal certainty for crypto market players. This tax not only functions as a source of state revenue, but also as part of the government's efforts to regulate and monitor digital economic activities. With this tax regulation, it is hoped that it can increase transparency and security in crypto transactions in Indonesia.

Read Also:

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.