INDODAX Complies With The Latest Tax Rules And Encourages More Ideal Policies

INDODAX CEO, Oscar Darmawan. (Photo: Doc. INDODAX)

JAKARTA - As a form of compliance with the latest tax regulations, INDODAX, the largest crypto exchange in Indonesia, has adjusted the Value Added Tax Rate (VAT) which is effective starting January 1, 2025. This adjustment is in accordance with the Regulation of the Minister of Finance (PMK) No. 131 of 2024 and PMK No. 81 of 2024, which regulates VAT rates for crypto asset transactions and other certain goods.

Now, the VAT tariff for crypto asset purchase transactions through Crypto Asset Physical Traders (PFAK) is set at 0.12 percent (1 percent x 12 percent) of the transaction value. Meanwhile, other transactions, such as deposit fees, rupiah withdrawal fees, and trading costs, are subject to an effective VAT rate of 11 percent, in accordance with PMK No. 131 of 2024 Article 3.

It is important to note that this VAT is imposed on the transaction fee, not on the amount of money deposited or withdrawn. This provision is part of the government's efforts to provide special tax treatment for crypto assets, given their unique nature and is different from conventional goods or services.

INDODAX CEO Oscar Darmawan stated, as an industry player, INDODAX ensures full compliance with applicable regulations by intensively consulting with relevant authorities, including the Tax Office.

"This VAT tariff adjustment is an important step in supporting tax transparency in Indonesia while ensuring the safety and convenience of transactions for our users," said Oscar, Saturday, January 4.

Oscar also emphasized the importance of clear regulations to encourage trust in the crypto asset sector.

"We understand that interpretation of tax regulations often presents challenges. However, through cooperation with relevant authorities, we believe this step will provide long-term benefits for the crypto ecosystem in Indonesia," he added.

Oscar explained, regarding taxes, INDODAX members do not need to worry, because all costs on INDODAX already include tax components, CFX costs, and so on.

"Thus, all costs have been automatically paid, so that the use of the INDODAX platform becomes simpler and easier for members," he explained.

Although INDODAX fully supports existing tax regulations, the company also provides constructive input for future more ideal policies. Given the crypto nature similar to financial transactions, INDODAX hopes that cryptocurrencies can be excluded from VAT, as has been implemented in several other countries. This will accelerate the adoption of crypto assets as an inclusive and innovative financial instrument in Indonesia.

In addition, with the elimination of VAT, it has the potential to increase state revenue from the final Income Tax (PPh) on crypto transactions. This is because the volume of crypto trading can grow bigger than the current conditions, as the cost burden is reduced for market participants.

"We believe that balanced regulations will create a more conducive ecosystem. In many countries, crypto assets are not subject to VAT because they are considered part of financial transactions. We hope that Indonesia can also consider similar policies to support the growth of this industry," said Oscar Darmawan.

With this adjustment step, INDODAX remains committed to becoming a trusted platform for its users, while continuing to encourage the development of the crypto industry in the country.