DGT Finalizes Crypto Tax Rules Along With Changes In Status To Financial Instruments

Director General of Taxes Bimo Wijayanto (Photo: Aris Nurjani/VOI)

The Directorate General of Taxes (DGT) of the Ministry of Finance (Kemenkeu) is currently finalizing a number of policies related to the imposition of taxes on crypto asset transactions.

Director General of Taxes Bimo Wijayanto explained that the adjustment of this rule was made in line with the change in the status of crypto assets in Indonesia, from what was originally categorized as a commodity to a financial instrument.

"In the past, we regulated the crypto as part of the commodity, then when he switched to financial instrument, we had to adjust the rules," said Bimo at the Press Conference, Tuesday, July 22.

However, Bimo has not disclosed in detail the points that will be regulated in the latest policy.

For information, currently the imposition of taxes on crypto assets is regulated in the Minister of Finance Regulation (PMK) Number 68 of 2022 concerning Value Added Tax (VAT) and Income Tax (PPh) on Crypto Asset Trading Transactions.

As for article 5 of the regulation stipulates that the delivery of crypto assets is subject to VAT with a certain amount, which is 1 percent (if transactions are carried out through exchangers registered with the Commodity Futures Trading Supervisory Agency (CoFTRA), the Ministry of Trade), or 2 percent (if transactions are carried out through exchangers that are not registered with CoFTRA) of VAT rates as stipulated in the VAT Law and its amendments.

On the other hand, for now, the VAT rate for the delivery of crypto assets is 0.11 percent or 0.22 percent of the transaction value of crypto assets, depending on whether transactions are made through exchangers registered with CoFTRA or not.

Meanwhile, Article 21 PMK 68/2022 stipulates that crypto asset sellers are subject to Article 22 Finals on income from crypto asset trading, either buying and selling with fiat currency, swaps, or exchanges with other goods/services.

The amount is 0.1 percent (if the transaction is carried out through an exchanger registered with CoFTRA) or 0.2 percent (if the transaction is carried out through an unregistered exchanger on CoFTRA) from the transaction value of a crypto asset.