Currency exchange is no longer always in physical form, such as coins and paper money. Currently, Crypto Assets can be recognized as a new medium of exchange, and public interest in investing in Crypto Assets is also increasing. On August 1, 2025, the Indonesian government, through the Director General of Taxes, issued Minister of Finance Regulation No. 50 of 2025 (PMK 50/2025) regarding transactions involving the trading of Crypto Assets.
VAT Aspects
Crypto Assets are now classified as financial assets equivalent to securities or financial products that are not subject to VAT. Therefore, PMK 50/2025 removes the imposition of VAT on Crypto Asset transfer transactions on official platforms. VAT is levied on the transfer of Taxable Services (“JKP”) in the form of:
- services for the provision of Electronic Facilities used to facilitate Crypto Asset trading transactions by Electronic Trading System Operators (“PPMSE”); and/or
- services for the verification of Crypto Asset transactions by Crypto Asset Miners.
VAT on the provision of electronic platforms used to facilitate Crypto Asset trading transactions by PPMSE is calculated by multiplying the 12% rate by the taxable value (“DPP”) of other values. The taxable value of other values is calculated as 11/12 of the taxable value in the form of compensation, i.e., commissions or rewards of any name or form. The invoice for the provision of JKP is designated as a specific document equivalent to a Tax Invoice.
VAT on the provision of Crypto Asset transaction verification services by Crypto Asset Miners is calculated at a specific rate of 2.2% (20% multiplied by 11/12 of the 12% rate) multiplied by the tax base in the form of compensation. Compensation refers to the monetary value of Crypto Asset received by Crypto Miners, including Crypto Asset received from the Crypto Asset system (block reward). A tax invoice must be issued in accordance with the provisions of applicable laws and regulations governing tax invoices for the provision of taxable services to recipients of taxable services with the characteristics of end consumers.
VAT must be collected, remitted, and reported by PPMSE and Crypto Asset Miners who have been confirmed as Taxable Entrepreneurs (“PKP”).
Income Tax Aspects
Income Tax (PPh) is imposed on income received or obtained by:
- Crypto Asset Sellers;
- PPMSE; or
- Crypto Asset Miners
The income referred to in connection with Crypto Asset transactions conducted through electronic platforms provided by PPMSE includes:
- transactions involving fiat currency payments;
- exchanging Crypto Asset for another Crypto Asset (swap); and/or
- other Crypto Asset transactions.
PMK 50/2025 stipulates the Final Income Tax Article 22 for crypto transactions as follows:
- 0.21% of the transaction value if conducted through a domestic PPMSE.
- 1% of the transaction value if conducted through a foreign PPMSE and/or when the seller must make the payment themselves.
A Crypto Asset Miners is an individual or entity that verifies Crypto Asset transactions to receive rewards in the form of Crypto Assets, either individually or as part of a Crypto Asset mining pool. Income received by Crypto Asset Miners is subject to income tax at the general rate in accordance with the Income Tax Law, including:
- income in the form of service fees received or earned by Crypto Asset Miners;
- income from the Crypto Asset system in the form of block rewards, fees for transaction verification services, or other income from the Crypto Asset system; and
- other income.
Final Income Tax Article 22 of 0.21% levied on Crypto Asset Miners for the sale of Crypto Assets through facilities provided by PPMSE.
PMK 50/2025 is effective as of August 1, 2025; however, the provisions regarding the imposition of Income Tax on income received or earned by Crypto Asset Miners will apply starting from the 2026 tax year.
For Tax Service Assistance, please contact:
Rani Widianti
T. (+6221) 2222-0200
Alvina Oktavia
T. (+6221) 2222-0200
E. alvina.oktavia@shinewing.id
