Indonesia -- Cryptocurrency Tax Framework Regulatory Overview

Indonesia treats cryptocurrency (referred to as crypto assets or digital financial assets) primarily as financial instruments subject to a final income tax on transactions, with VAT exemptions on sales but applicable to certain services. This shifted from earlier commodity treatment under BAPPEBTI to regulation by OJK, with key updates via PMK 50/2025, PMK 37/2025, and PMK-504 (issued July 28, 2025).[1][3][5]

Capital Gains Tax and Income Tax on Crypto Transactions

• Trading gains and sales are subject to final income tax (PPh 22 Final) at 0.21% of the gross transaction value for domestic exchanges (up from 0.1%, effective around August 2025).[1][2][5]
• For overseas or non-approved exchanges, the rate is 1% (up from 0.2%).[2][5]
• This is a flat final tax on transaction value, not traditional capital gains based on profit; it applies to sellers, collected by approved exchanges (PPMSEs).[1][4][5]
• Crypto-to-crypto trades may trigger VAT in some cases under PMK 50/2025, but trading gains remain under final income tax.[3]
• Mining/staking income: No special 0.1% rate; subject to standard personal or corporate income tax rates (effective 2026); mining VAT doubled to 2.2%.[2][3]
• Older rates (pre-2025): 0.1% domestic, 0.2% foreign; some sources note 0.12% VAT + 0.1% income tax per transaction.[4][6]

VAT/GST Treatment

• Sales of crypto assets are exempt from VAT (previously 0.11%-0.22% when treated as commodities).[1][2]
• VAT (12%, up from 11%) applies to exchange services (commissions/fees), with base at 11/12 of fees to maintain effective burden; miners face 2.2% VAT.[1][2][3]
• Certain crypto-to-crypto trades may be VAT-taxable under 2025 rules.[3]

Reporting Requirements

• Individuals/Sellers: Approved exchanges collect/remit 0.21% PPh; self-remit/report via Unification Monthly Income Tax Return if exchange fails or for limited-service/foreign platforms. Thresholds apply for foreign platforms with Indonesian users/transactions.[5]
• Businesses/Exchanges (PPMSEs): Must collect/remit taxes; report services under normal income tax (no withholding). Foreign platforms with significant Indonesian activity (e.g., IP addresses, phone codes) must comply.[5]
• Residents need tax ID; exchanges handle collection for approved ones. Exemption possible for foreign income tax if from tax treaty country (with domicile certificate).[5]

Crypto-Specific Legislation

• PMK 50/2025: Reshapes crypto taxation, final income tax on trading, VAT expansions/exemptions.[3]
• PMK 37/2025: Broader digital platform rules.[3]
• PMK-504 (July 28, 2025): Aligns tax with OJK supervision; details PPh rates, collections.[5]
• Oversight now by OJK (from BAPPEBTI).[1][5]

Note: Regulations evolved rapidly in 2025; rates post-August 2025 supersede older ones (e.g., 0.1%). Consult Direktorat Jenderal Pajak (pajak.go.id) or a tax advisor for latest compliance, as some sources conflict on pre-2025 vs. current rates.[1][2][3][5] Specific authority references (from results):

• PMK-504: https://www.pwc.com/id/en/taxflash/assets/english/2025/taxflash-2025-11.pdf[5]
• PMK 50/2025 & 37/2025: https://www.itrworldtax.com/NewsAndAnalysis/Indonesias-Shift-in-Digital-Crypto-Taxation-2025-Reforms-and-Industry-Impacts/Index/2149[3]
• General: https://www.pajak.go.id/id/node/83906[7]