The government has officially levied a tax on crypto assets traded in Indonesia. The tax withdrawn is Value Added Tax (VAT) and also Income Tax (PPh).
This taxation is contained in Minister of Finance Regulation (PMK) number 68 of 2022 concerning Value Added Tax and also Income Tax on crypto asset trading transactions which was released today, Tuesday (5/4/2022).
“That income from trading crypto assets is an additional economic capability received or obtained by taxpayers both from Indonesia and from outside Indonesia who are the object of income tax,” the PMK wrote.
The basis for taxation of crypto assets is the amount of the selling price, replacement, import value, export value, or other value used as the basis for calculating the tax payable.
In chapter II, article 2 of this PMK it is stated that the imposition of VAT on crypto transactions to consumers is carried out by sellers of crypto assets. In this case, the seller of crypto assets will be the right hand of the government to collect VAT from consumers.
The tax rates imposed for crypto transactions from sellers to consumers are:
- 1% of the VAT rate multiplied by the transaction value of crypto assets if the PMSE Operator is a physical trader of crypto assets.
- 2% of the VAT rate multiplied by the transaction value of crypto assets if the PMS operator is not a physical trader of crypto assets.
VAT is collected when:
- crypto asset buyers make payments to PMSE organizers
- exchange of crypto assets to other parties’ accounts or exchange among crypto assets
- transfer of crypto assets to the account of another party in this case the transaction of exchanging crypto assets with goods other than crypto
After collecting VAT from the buyer, the PMSE organizer or digital company reports the VAT that has been collected using the 1107 PUT VAT Period SPT.
Meanwhile, PPh is levied on PMSE organizers or digital companies for the income earned from selling crypto assets as well as for crypto asset miners.
“Income received or earned by sellers of crypto assets in connection with crypto asset transactions is subject to income tax,” the PMK wrote.
The income tax imposed is Article 22 with the following rates:
- 0.1% of the transaction value of crypto assets, excluding VAT and PPnBM, in the event that PMSE has obtained government approval to sell crypto assets.
- 0.2% of the transaction value of crypto assets, excluding VAT and PPnBM, in the event that PMSE does not obtain government approval to sell crypto assets.