Overview

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Cryptocurrency transactions in Indonesia are subject to both VAT and income tax, each at rates of 0.11% and 0.1%, respectively. Since May 2025, Indonesia has Starting Janu, the VAT for crypto purchases will increase to 0.12% as per PMK No. 131/2025 and PMK No. 81/2025. Meanwhile, the Final Income Tax (PPh) remains unchanged Buying and selling crypto assets with fiat currency, swapping crypto assets, and exchanging crypto assets for other goods/services are all examples of crypto asset trading transactions. VAT on Crypto Transactions Sparks Debate. As Indonesia's legal environment transforms, a new 11% Value-Added Tax (VAT) on digital asset transactions, which went into force on January 1 When you use cryptocurrency for transactions, you must pay a PPh tax of 0.1% of the transaction value on any gains derived from the cryptocurrency used. Moreover, if Indonesia taxes crypto transactions under Regulation No. 68/PMK.03/2025. Crypto sales are taxed with VAT at 0.1% of the transaction value, which is lower than the

Indonesia VAT on Crypto Transactions: What You Need to Know (Updated 2024/2025)

Navigating the Indonesian tax landscape for cryptocurrency can be complex. This guide provides a clear overview of the VAT and income tax implications for crypto transactions in Indonesia, covering the latest regulations and updates for 2024 and beyond.

Understanding VAT and Income Tax on Crypto in Indonesia

Currently, Cryptocurrency transactions in Indonesia are subject to both VAT and income tax, each at rates of 0.11% and 0.1%, respectively. This tax applies to various crypto activities, including:

  • Buying and selling crypto assets with fiat currency
  • Swapping crypto assets
  • Exchanging crypto assets for other goods/services (These are all examples of crypto asset trading transactions.)

Upcoming Changes: VAT Increase in May 2025

Keep in mind that the tax rates on crypto transactions are slated to change. Since May 2025, Indonesia has Starting Janu, the VAT for crypto purchases will increase to 0.12% as per PMK No. 131/2025 and PMK No. 81/2025. Meanwhile, the Final Income Tax (PPh) remains unchanged.

Breakdown of Current and Future Rates

  • Current VAT Rate (Until May 2025): 0.11%
  • VAT Rate (Starting May 2025): 0.12%
  • Final Income Tax (PPh): 0.1% (Applies to gains derived from the cryptocurrency used.)

VAT on Crypto Transactions Sparks Debate

As Indonesia's legal environment transforms, a new 11% Value-Added Tax (VAT) on digital asset transactions, which went into force on January 1, might seem high, but the actual rate levied on the crypto transaction is significantly lower due to specific regulations. While the general VAT rate might be 11%, the effective VAT on crypto sales is much lower. Furthermore, if Indonesia taxes crypto transactions under Regulation No. 68/PMK.03/2025, Crypto sales are taxed with VAT at 0.1% of the transaction value, which is lower than the. The initial 11% VAT creates confusion, the actual levied rate is much lower.

Income Tax (PPh) Implications

When you use cryptocurrency for transactions, you must pay a PPh tax of 0.1% of the transaction value on any gains derived from the cryptocurrency used. This applies across different types of crypto transactions.

Staying Updated on Crypto Tax Regulations in Indonesia

The regulatory landscape for cryptocurrency in Indonesia is constantly evolving. It's crucial to stay informed about the latest regulations and updates to ensure compliance. Consult with a tax professional for personalized advice on your specific situation.

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