JAKARTA - The Ministry of Finance has issued changes to its taxation policy for crypto asset transactions, which will take effect starting in the 2026 fiscal year.
These changes are outlined in Minister of Finance Regulation (PMK) Number 50 of 2025 concerning Value Added Tax (VAT) and Income Tax (PPh) on Crypto Asset Trading Transactions, which was promulgated on July 25, 2025.
The regulation explains that the PPh rate on crypto assets will increase in 2026, while Value Added Tax (VAT) will be exempt.
"To provide legal certainty, simplicity, and administrative ease in the collection, payment, and reporting of taxes on crypto asset trading transactions, it is necessary to adjust the provisions regarding Value Added Tax and Income Tax on crypto asset trading transactions," as quoted on Wednesday, July 30.
In the PMK, crypto assets are equated with securities and therefore exempt from VAT. However, taxable services provided in the form of electronic platform services used to facilitate crypto asset trading transactions by electronic system trading providers (PMSE) and taxable services in the form of crypto asset transaction verification services by crypto asset miners remain subject to VAT.
Furthermore, services provided by electronic platform providers subject to VAT to facilitate crypto asset transactions include buying and selling crypto assets using fiat currency, exchanging crypto assets for other crypto assets (swaps), and/or electronic wallets, including deposits, withdrawals, transferring crypto assets to other accounts, and providing or managing crypto asset storage media.
The VAT on these services is 11 percent, calculated based on the 2025 VAT rate of 12 percent multiplied by an adjustment factor of 11/12 as stipulated in PMK 131/2024.
Meanwhile, the Income Tax (PPh) rate on income from crypto asset transactions has increased, which will apply to recipients or individuals earning income from the sale of crypto assets, conducting electronic trading (PMSE), and crypto asset miners.
"Income received or accrued by Crypto Asset Sellers in connection with Crypto Asset transactions as referred to in Article 10 letter a is subject to Income Tax," as stated in PMK 50/2025.
Income related to Crypto Asset transactions includes income from all types of Crypto Asset transactions, including transactions involving fiat currency payments; exchanges of Crypto Assets for other Crypto Assets (swaps); and/or other Crypto Asset transactions.
In PMK 50/2025, the final Article 22 Income Tax rate for crypto asset transactions conducted through providers registered with Bappebti increases to 0.21 percent from the previous 0.1 percent (based on PMK 68/2022).
"The final Article 22 Income Tax as referred to in paragraph (2) shall be collected, remitted, and reported by the Electronic Trading Provider," as quoted from Article 12 of PMK 50/2025.
In addition, income received or earned by Crypto Asset Sellers from Crypto Asset transactions conducted through Electronic Facilities provided by the Electronic Trading Provider is subject to Article 22 Income Tax at a rate of 1 percent of the Crypto Asset transaction value.
Furthermore, income received or earned by Crypto Asset Sellers through Electronic Facilities provided by the Electronic Trading Provider has been subject to foreign income tax by the country or jurisdiction where the income is sourced abroad. This foreign income tax cannot be credited against income tax payable in Indonesia.
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