Good news for us crypto asset traders and holders. The Indonesian government has finally determined that crypto assets are no longer subject to Value Added Tax (VAT). This policy is officially stipulated in Article 2 of the Minister of Finance Regulation (PMK) Number 50 of 2025, which states that "The transfer of Crypto Assets that are equated with securities is not subject to VAT."
For me, this is a step forward. There has been confusion regarding taxation in the rapidly growing crypto sector. It is now clear that crypto assets, as goods (or in this case, securities), are not subject to VAT. This means we can more freely buy and sell or hold assets without worrying about double taxation.
However, don't misunderstand. This doesn't mean all crypto activities are tax-free. The government still imposes VAT on services that support crypto transactions. These include:
Platform services (exchanges) that facilitate the buying and selling of crypto.
Exchanging crypto assets for other crypto (swaps).
Digital wallet services such as deposits, withdrawals, and asset transfers.
Crypto mining services.
The rates are not small either. The VAT payable is set at 12 percent of the tax base, calculated as 1 1/2 of the commission or reward received by the electronic trading system organizer (PMSE). If payments are made in foreign currency or crypto assets, the value must be converted to rupiah based on the official exchange rate or stock exchange price.
For crypto miners, the rules are even stricter. Those who have been confirmed as Taxable Entrepreneurs (PKP) are required to remit VAT, calculated using a specific rate: 20 percent multiplied by 1 1/12 of the VAT rate on the value of the crypto assets received, including block rewards.
So, the good news: the crypto assets we own are exempt from VAT. However, every time we transact through the platform, there are still applicable taxes. Personally, I think this is a fairly fair measure. The government still receives revenue from crypto business activities, while we as traders don't feel overly burdened.
What's important now is that we, as crypto players, must be aware of tax regulations. Don't let the excitement of "VAT-free" cause us to neglect our other obligations.[]
