GOVERNMENT OFFICIALLY RELEASES NEW CRYPTO TAX RULES: INCOME TAX RISES TO 0.21%

INCOME TAX INCREASED, VAT REMOVED?

The Government of Indonesia, through the Ministry of Finance, has officially set a final Income Tax (PPh) rate of 0.21% on cryptocurrency transactions. This rate is an increase from the previous range of 0.1–0.2%.

The policy is stipulated in the Minister of Finance Regulation (PMK) Number 50 of 2025 and is effective as of August 1, 2025.

"It has now been changed to 0.21% solely for income tax. So essentially, the tax burden remains the same, although the burden now falls on the seller," said Hestu Yoga Saksama, Director of Tax Regulation I at the Directorate General of Taxes (DJP), during a media briefing at the DJP office in Jakarta, Thursday (31/07/2025).

INCOME TAX RAISED DUE TO GROWTH OF INDONESIA'S CRYPTO INDUSTRY

According to the Financial Services Authority (OJK), the value of cryptocurrency transactions in Indonesia in Q1 2025 reached IDR 109.3 trillion. Although this figure declined from Q1 2024, where total crypto trades amounted to IDR 158.84 trillion, the government sees the crypto sector as growing and maturing.

Along with this new regulation, the government also removed the application of Value Added Tax (VAT) on crypto assets.

VAT REMOVED STARTING AUGUST 1, 2025

The Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu) has eliminated VAT on crypto asset transactions starting August 1, 2025. This is due to a shift in the legal status of crypto in Indonesia—from a commodity to a digital financial asset with characteristics similar to securities.

INVESTORS STILL TAXED EVEN IN LOSS SCENARIOS

The final income tax on crypto transactions has now increased from the previous 0.1%–0.2% to a flat 0.21%. It is important to note that this final tax scheme has a significant drawback—it is imposed regardless of whether the investor makes a profit or incurs a loss. This differs from capital gains tax, which is only levied on profitable investments.

EXAMPLES OF CRYPTO TAX CALCULATIONS

First Example: BTC Sale

If someone sells 0.7 BTC to another person through a crypto exchange company, assuming the price of 1 BTC = IDR 500 million, the total transaction value would be IDR 350 million.

They will be subject to a Final Income Tax (PPh) of 0.21% = IDR 735,000.

Second Example: Crypto Swap

If a trader swaps 0.3 units of Crypto F (IDR 500 million per coin) with 30 units of Crypto E (IDR 5 million per coin) owned by another trader,

the first person will be subject to a tax of:

0.21% × (0.3 × IDR 500 million) = IDR 315,000.00 on the transfer of Crypto As
set F.

Meanwhile, the second trader will be subject to a tax of:

0.21% × (30 × IDR 5 million) = IDR 315,000.00 on the transfer of Crypto Asset G.

Thus, all deductions will be automatically carried out by the PMSE (Electronic System Trading Operator/registered crypto exchange).