COINHOT – The cryptocurrency business in Indonesia will definitely continue to increase, with the potential to even reach hundreds of billions.
The government has initiated a policy of imposing value -added tax (VAT) and income tax (PPh) on crypto asset transactions in Indonesia, which will pay state revenue.
Bonarcius Sibayong, Head of the Value Added Tax Regulatory Sub -Directorate of Trade, Services and Other Indirect Taxes at the Directorate General of Taxation (DGT) of the Ministry of Finance, pointed out that estimates by tax authorities show revenue from VAT and PPh may be levied on encrypted asset transactions to IDR trillions.
“The revenue potential is that we take data on the number of crypto transactions for 2020 in Indonesia amounting to IDR 850 trillion.
For example, we took the example of tariffs from physical crypto asset traders (PFAKs) who are not registered with CoFTRA, the rate is 0.2% multiplied by the total crypto transactions, so the result is about IDR 1 trillion. ” To the Media Staff, Wednesday (6/4)) / 2022.
This large potential yield can be optimized to increase the nominal amount of direct cash assistance (BLT) to a lower category.
Therefore, Bornarsius refers to investing in this cryptocurrency as soon as you cross the paddle, two or three islands.
“It’s not bad, it’s more than 1 trillion rupiah distributed to BLT throughout Indonesia.
Then those who have more money can invest, make a profit, increase state revenue, and share with others. ”
Then, this excise tax is imposed on parties who facilitate the trading of crypto assets within and outside the country. This is the principle of justice for every commercial actor in it.
Because according to Bonarcius, these parties are vast. It can also cover domestic and foreign markets.
But of course, for foreign countries, governments have standards. But he stressed that the government will continue to implement it fairly.
On the same occasion, Public Relations Sub-Directorate DJP Dwi Astuti said that the acceptability of cryptocurrencies will also depend on the size of the transaction volume, so that the amount can go up or down from 2020.
As additional information, the government has officially issued Regulation of the Minister of Finance No. (PMK). 68 / PMK.03 / 2022 which regulates income tax (PPh) and value added tax (VAT) on cryptocurrency trading transactions.
According to the rules, a cryptocurrency is not a currency or a security but is a commodity in the form of rights and other interests in digital form, so it can be a taxable intangible commodity (BKP).
When surrendering a crypto asset, the amount of VAT collected or deposited is 1% of the total VAT rate, or about 0.11%.
Meanwhile, if the trade is not carried out by a real crypto asset trader, the amount of VAT collected and deposited can be 2% of the general VAT rate or 0.22%.
Furthermore, a seller of a crypto asset is an individual or entity that sells or exchanges a crypto asset, and the seller is subject to Article 22 of the final PPh at a rate of 0.1% to be collected, deposited and reported by the trade. regulator.
Valid from 1 May 2022
New rules on Indonesian crypto taxes have been officially published and will take effect on May 1, 2022.
Excerpted from, the amount of crypto tax is controlled by Regulation of the Minister of Finance of the Republic of Indonesia No. 68/PMK.03/2022 on Value Added Tax and Income Tax on Crypto Asset Trading Transactions.
With this rule, the trading of crypto assets will be subject to Value Added Tax (VAT) and Income Tax (PPh).
Article 2 of the rules states that VAT on crypto assets is levied on provisions:
Intangible goods are taxable in the form of crypto assets by sellers of crypto assets;
Taxable services in the form of services for the provision of electronic means used in cryptocurrency trading transactions by trade regulators through electronic systems;
and/or taxable services in the form of crypto asset transaction verification services and/or mining group management services by crypto asset miners.
In this Indonesian crypto tax base, it is stated that the amount of crypto tax or VAT rate for crypto currency varies for each shipment of taxable goods and services.
Value Added Tax on Sales of Cryptocurrencies It is explained that the delivery of crypto assets by sellers of crypto assets subject to VAT is:
Buy and sell crypto assets in fiat currency;
exchanging crypto assets with other crypto assets (swap);
and/or exchange crypto assets for goods other than crypto assets and/or services.
VAT payable on delivery of crypto assets by the seller of crypto assets and deposited in a certain amount, as specified in Article 5, is collected as follows:
1 percent of the value -added tax rate multiplied by the transaction value of the crypto asset, if the trade provider through the electronic system is a physical distributor of the crypto asset;
Or 2 percent of the VAT rate multiplied by the transaction value of the crypto asset, if the trade provider through the electronic system is not a real trader of the crypto asset.
VAT on cryptocurrency trading services Various provisions apply to VAT when providing services for the provision of electronic means used in cryptocurrency trading transactions.
Article 12 of the regulation clarifies that the provision of electronic facilities used to facilitate the transaction of crypto assets is at least in the form of service activities:
Buy and sell crypto assets using fiat currency;
exchanging crypto assets with other crypto assets (swap);
and/or electronic wallets (electronic wallets) including deposits, withdrawals, transfers (transfers and crypto assets to third party accounts, allocation and/or management of crypto asset storage media.
The amount of crypto tax on services for the provision of electronic means used in cryptocurrency trading transactions by trade regulators through electronic systems is:
VAT payable is calculated by multiplying the VAT rate by the tax base.
The basis of taxation as indicated in the form of compensation in the form of commissions or bonuses in any name and in any form, including commissions or bonuses received by trade organizers through electronic systems and which will be sent to the origin of the cryptocurrency miner.
Value Added Tax on Crypto Miner Verification Services Meanwhile, VAT will also be levied on the provision of cryptocurrency transaction verification services by crypto asset miners.
VAT payable is collected and deposited in a certain amount, which is set at 10 percent of the VAT rate multiplied by the monetary value of the crypto asset received by the crypto asset miner, including crypto assets received from the crypto asset scheme (block reward).
This is information on the amount of crypto tax, especially the VAT rate for crypto assets based on Indonesian crypto tax rules.
COO of Tokocrypto Teguh Kurniawan Harmanda said his party always supported the government’s efforts and measures to increase state revenue, one of which was the introduction of a trade tax on cryptocurrency assets in Indonesia.
Moreover, the man also known as Manda believes that the implementation of this tax could have a positive impact on the cryptocurrency industry, which is now seen to have strong legitimacy.
However, he said, Tokocrypto was still looking back and waiting for further guidance on FMD, including final VAT levels and 0.1%-0.2% PPh excise.
Manda explained to Kontan.co.id on Wednesday (6/4): “As an association and trading company for crypto assets under CoFTRA, we will always implement good corporate governance that complies with and complies with Indonesian laws and regulations. . ”).
Manda, who is also president of the Indonesian Asset Traders Association (Aspakrindo), said the association was also actively working to provide input to the government on how equal standing in cryptocurrency trading has taken place.
If these new tax words turn out to be incorrect, it is feared it will lead to a downturn in the crypto asset industry. He considered the government should involve businessmen in formulating the new policy.
“Actually we have never objected to this tax issue, but if there is a new tax, all actors in the industry must be involved. So the outcome can be fair to all.”
How much value should be taxed, Manda said, should follow the development of the industry itself. According to him, at present, the crypto asset industry in Indonesia is still new, so it requires appropriate and unrestricted regulatory certainty considerations.
If the tax imposed is too high, it will make investors feel disadvantaged and unfair. The reason is that when investors make profits they are taxable, but when they lose they are not tax deductible.
“In reality, investing in high -risk instruments will be fraught with uncertainty,” Manda added. (Kontan / Hikma Dirgantara / Bidara Pink / Muhammad Choirul Anwar)