Are you based in Indonesia and wondering how to navigate the complex world of crypto taxes? You’re in the right place. With regulations evolving rapidly, it becomes crucial to understand your obligations. Knowing how taxes apply to your digital assets is essential whether you’re a seasoned crypto trader or just starting your journey.
In Indonesia, the Direktorat Jenderal Pajak (DJP) has taken steps to regulate cryptocurrencies, which means you could face penalties if you don’t stay informed. From understanding what counts as taxable income to learning about tax rates and filing deadlines, this guide will simplify everything you need to know.
We’ll break down complex rules, share practical tips, and help you stay compliant so you can trade with confidence and peace of mind.
Do I Have To Pay Tax On Crypto In Indonesia?
Yes, you have to pay taxes on crypto transactions in Indonesia. The Direktorat Jenderal Pajak (DJP) recognises crypto assets as commodities and has established specific tax regulations for them.
According to the Minister of Finance Regulation No. 68/PMK.03/2022 (MoF-68), any transactions involving crypto assets are subject to tax starting from May 1, 2022. Two main types of taxes apply to crypto transactions in Indonesia: the Art. 22 Income Tax and Value Added Tax (VAT).
Whenever you trade, swap, or provide services related to crypto transactions, such as using an electronic platform for crypto trading or providing asset verification services, you must pay both Income Tax and VAT.
Indonesian crypto exchanges must legally collect both income tax (PPh) and VAT on cryptocurrency transactions. The exchange automatically deducts these taxes when you sell or trade your crypto.
The applicable taxes are taken from the transaction amount before the remaining funds are credited to your account. It’s also important to remember that any losses from crypto trades can’t be used to offset gains from other investments.
How Much Tax Do I Pay On Crypto In Indonesia?
As per Bappebti, Indonesia’s Commodity Futures Trading Regulatory Agency, crypto transactions are subject to specific tax regulations under PMK 68/2022. These taxes apply to both buyers and sellers of crypto assets, with distinct rates depending on the type of exchange platform used. Here’s what you need to know about how much tax you’ll pay on crypto in Indonesia.
VAT on Crypto Transactions
As a buyer or recipient of crypto assets, you are required to pay Value Added Tax (VAT) or Pajak Pertambahan Nilai (PPN). The PPN rate is determined by whether the transaction is conducted on a registered exchange platform. If you trade on a platform registered with Bappebti, the VAT is 0.11% of the transaction value. On the other hand, if you use an unregistered exchange platform, the VAT rate doubles to 0.22%.
PPh Final Tax for Sellers
For sellers or senders of crypto assets, a PPh final tax is also applicable. The tax rate, like VAT, depends on the registration status of the exchange platform. If the platform is registered with Bappebti, the PPh final tax is set at 0.1% of the transaction value. If it’s not registered, the tax rate increases to 0.2%.
Taxes on Crypto Mining
Crypto mining activities are also subject to taxes. Miners and mining pools are required to pay VAT at a rate of 1.1% of the conversion value of the mined crypto assets and services. Moreover, income from mining is taxed at 0.1% of the earned income, excluding VAT.
Income Tax in Indonesia (Pajak Penghasilan Tax)
As per the Bappebti, tax residency determines your obligation to pay income tax or PPh (Pajak Penghasilan). If you reside in the country for more than 183 days within 12 months or intend to stay for an extended duration, you are classified as a domestic tax subject.
This classification impacts your income tax responsibilities, including income derived from cryptocurrency. If you earn income through cryptocurrency or transact in crypto for goods and services, that income is subject to Indonesian income tax.
Criteria for 'Residing in Indonesia'
The term ‘residing in Indonesia’ has a specific definition. It applies to individuals who:
- Live in Indonesia: You must have a place of residence in Indonesia that is accessible at all times. This could be a home you own, rent, or otherwise have at your disposal.
- Have Vital Interests: Your primary interests, such as family, business, or social connections, should be in Indonesia.
- Have a Habitual Abode: Your regular and customary place of living should be within the country.
The above factors combined determine if you are considered to reside in Indonesia for tax purposes.
Proving 'Intention to Stay in Indonesia'
If you intend to stay in Indonesia, you must substantiate it with specific documents. These include:
- Permanent Stay Permit: A document indicating your permanent residency.
- Limited Stay Visa: A visa that permits a limited but extended stay.
- Limited Stay Permit: A permit allowing you to stay for a defined period.
- Additional Supporting Documents: Any other documents that justify a stay of more than 183 days.
Income Tax On Foreigners
According to Bappebti, territorial taxation applies to foreigners who have become domestic tax subjects. This means that foreign individuals are only taxed on income sourced from within Indonesia, not on their global income. This tax structure is particularly beneficial for expatriates and foreign workers who earn income outside of Indonesia.
Income Tax Rates In Indonesia
In Indonesia, residents are taxed on their net taxable income through a withholding progressive tax system. This means that the more you earn, the higher your tax rate will be.
Here’s a detailed list of personal income tax rates applied to residents in Indonesia:
Personal Income Tax Rates in Indonesia | |
Annual income | Rate (%) |
Up to IDR 60 million | 5% |
Above IDR 60 million to IDR 250 million | 15% |
Above IDR 250 million to IDR 500 million | 25% |
Above IDR 500 million to IDR 5 billion | 30% |
Above IDR 5 billion | 35% |
Non-residents, on the other hand, are subject to a different tax structure. They pay a final withholding flat tax of 20% on their gross income, regardless of the amount. This flat tax rate is straightforward and applies uniformly to all non-residents, ensuring that tax is deducted at the source before the income reaches the individual.
How Are Crypto Events Taxed In Indonesia?
Here’s how different crypto transactions are taxed in Indonesia:
Buying Cryptocurrency
Buying cryptocurrency involves purchasing digital assets like Bitcoin, Ethereum, or other tokens using traditional currency or another cryptocurrency.
In Indonesia, buying cryptocurrency is not only about acquiring digital assets; it also comes with tax obligations. This tax regulation is enforced by Bappebti, Indonesia’s Commodity Futures Trading Regulatory Agency.
When you buy crypto on a registered exchange platform, the transaction is subject to a Value Added Tax (VAT) of 0.11% of the transaction value. However, if you use an unregistered platform, the VAT increases to 0.22%.
Selling Cryptocurrency
Selling cryptocurrency involves exchanging your digital assets for fiat currency. When you sell cryptocurrency in Indonesia, you need to understand that your profits are taxable. The government imposes an income tax (PPh) of 0.1% on the profits you make from selling your crypto.
Additionally, there’s a PPN of 0.11% on the transaction value. This means that every time you sell your cryptocurrency, a portion of your profit and transaction value will go to the government as tax.
Swapping Cryptocurrency
wapping cryptocurrency refers to exchanging one digital asset for another, often within the same platform or through a decentralised exchange. In Indonesia, swapping crypto is not only a simple trade but also a taxable event.
The government requires you to pay PPh at a flat rate of 0.1% on any profit gained from the swap. Besides, you’ll need to pay PPN on the transaction value. If you swap on an exchange registered in Indonesia, the rate stands at 0.11%. However, if the exchange is not registered, the rate increases to 0.22%.
Spending Crypto For Purchase Of Goods Or Services
Swapping cryptocurrency refers to exchanging one digital asset for another, often within the same platform or through a decentralised exchange. In Indonesia, swapping crypto is not only a simple trade but also a taxable event.
The government requires you to pay PPh at a flat rate of 0.1% on any profit gained from the swap. Besides, you’ll need to pay PPN on the transaction value. If you swap on an exchange registered in Indonesia, the rate stands at 0.11%. However, if the exchange is not registered, the rate increases to 0.22%.
Spending Crypto For Purchase Of Goods Or Services
Spending cryptocurrency for goods and services implicates using your digital assets to make purchases, just like using traditional money. In Indonesia, this action triggers specific tax obligations.
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 the transaction occurs on a platform registered in Indonesia, the VAT is 0.11%. For transactions on non-registered platforms, the VAT increases to 0.22%.
Receipt Of Crypto As Salary
Receiving cryptocurrency as your salary means you’re compensated with digital currencies instead of getting traditional currency. In Indonesia, this form of payment is treated as taxable income. Even though there’s no specific guideline for crypto salary, it is generally considered taxable under income tax laws.
What Happens When You Receive Salary In Crypto?
After you get your salary (in crypto), the value of the received cryptocurrency gets converted into Indonesian Rupiah (IDR) at the time you receive it. This converted amount is then added to your total income for tax purposes. Finally, the applicable income tax rate varies based on your residency status and your total income bracket.
Receipt Of Crypto As Payment For Goods Or Services
Receiving cryptocurrency as payment for goods or services means accepting digital assets instead of traditional currency for transactions. This type of transaction is considered taxable income, even though there is no specific guidance for crypto payments.
The taxable amount is determined by converting the value of the received cryptocurrency into Indonesian rupiah at the time of receipt. This converted amount then gets added to your gross income. The income tax rate you pay depends on your residential status and the applicable income tax bracket.
Receipt Of Crypto As Gift
Receiving cryptocurrency as a gift means you are acquiring digital assets without a purchase. In Indonesia, this transaction does not incur any form of taxes. Therefore, you won’t incur additional tax burdens when receiving crypto gifts.
However, keep in mind that if you sell or swap the gifted cryptocurrency later, you will need to account for taxes on any profits made from those transactions.
Receipt Of Crypto As Inheritance
Receiving cryptocurrency as inheritance means you are taking over digital assets passed down from someone who has died. In Indonesia, this type of transaction does not incur inheritance taxes.
Although you won’t face taxes at the time of receipt, any future sale or exchange of the inherited crypto will be subject to standard taxation on the profits you earn.
Donating Crypto
In Indonesia, donations of crypto can be considered taxable income for the recipient. However, if you donate to causes like disaster relief, research and development, educational institutions, sports development, or social infrastructure, you may qualify for tax deductions.
Crypto Airdrops
Crypto airdrops occur when you receive free tokens from a project, typically as part of a promotional campaign.
In Indonesia, these airdrops are taxed at a flat rate of 0.1% based on the token’s value when you receive it. If the airdropped tokens have no value at the time of receipt, you won’t owe any tax.
However, if you sell these tokens later when they gain value, you must pay PPN. The VAT rate ranges from 0.11% to 0.22%, depending on whether you use a registered or non-registered exchange.
Crypto Mining Rewards
Mining rewards refer to the cryptocurrency you earn as compensation for validating transactions and securing the blockchain network. In Indonesia, these rewards are subject to a flat income tax of 0.1% based on their value when you receive them.
If you later sell the mined cryptocurrency at a higher value, you must pay VAT on the profit. The tax rate ranges from 0.11% to 0.22%, depending on whether the exchange used for selling is registered in Indonesia or not.
Profit/Income From Dealing In Crypto Derivatives
Profits or income from dealing in crypto derivatives involve earning money through trading complex financial products linked to cryptocurrency prices. While there are no specific guidelines for crypto derivatives, these profits are treated similarly to income from regular cryptocurrency transactions.
This means they are subject to PPh tax at a rate of 0.1% on the profit. Additionally, you must pay VAT at 0.11% if using a registered exchange or 0.22% if the exchange is not registered in Indonesia.
How Are DeFi Activities Taxed In Indonesia?
DeFi, or Decentralised Finance, revolutionises traditional finance by using blockchain technology to offer financial services without intermediaries. DeFi activities include lending, borrowing, and trading cryptocurrencies on decentralised platforms. In Indonesia, understanding how these activities are taxed is crucial for compliance and financial planning.
Staking Rewards
Staking rewards involve earning additional cryptocurrency by participating in a network’s staking process. When you stake your crypto, you contribute to network security or operations and receive rewards in return.
These rewards are taxable at a flat rate of 0.1%. The tax is based on the value of the staking rewards when you receive them.
Offering Liquidity To Liquid Pools
Offering liquidity to liquid pools concerns providing your cryptocurrency to a liquidity pool on a decentralised exchange. This action helps facilitate trading on the platform. And, you will need to pay taxes on any rewards earned from providing liquidity.
The tax is applied at a flat rate of 0.1%. The value of the tokens you receive as rewards will be assessed at the time you earn them, and this value will determine the amount subject to tax.
Lending Crypto
Lending cryptocurrency involves temporarily giving your digital assets to another party in exchange for interest or other benefits. Lending crypto does not trigger any tax obligations. This means you won’t face taxes specifically related to the act of lending.
Borrowing Crypto
When you borrow cryptocurrency, you’re essentially taking out a loan in digital assets that you need to return later. In Indonesia, this type of transaction is not subject to taxes. Since borrowing doesn’t change ownership, it does not trigger any tax liability. However, if you use the borrowed crypto to make a profit, you might face tax implications on those earnings.
Wrapping Tokens
Wrapping tokens involves converting one type of cryptocurrency into a wrapped version of itself, often to use on a different blockchain or platform. This transaction is subject to tax. The tax rate applied is a flat 0.1% income tax (PPh) on the value of the wrapped tokens.
Yield Farming
Yield farming means using your cryptocurrency to provide liquidity or participate in lending, earning extra tokens or interest in return. As per the Indonesian tax laws, the profits you make from yield farming are subject to a tax of 0.1%. This tax applies to the income you generate from these activities, so be sure to include it in your tax reporting.
How Do You Report Crypto Taxes In Indonesia?
Crypto exchanges in Indonesia are required to remit the 0.1% income tax (PPh) deducted from users’ transactions to the Directorate General of Taxes (DJP) by the 15th of each month for the previous month’s transactions.
All crypto service providers must follow specific steps to report their taxes. Here’s a brief overview:
- Prepare Documentation: Gather all necessary documents, including transaction records and proof of tax deductions.
- Log in to DJP Online: Access the DJP Online portal using your NPWP (Taxpayer Identification Number), password, and security code.
- Select e-Form PDF: Navigate to the “Report” menu and choose “e-Form PDF.”
- Create SPT: Select “Create SPT” and answer the required questions.
- Fill in the SPT 1770 Form: Enter the relevant data, including income from crypto sales in the “Other Income” section.
- Upload Supporting Documents: Attach proof of deductions and any other supporting documents.
- Submit and Save: Click “Save” and “Send” to submit your tax return online. Print an electronic receipt as proof of your SPT reporting.
These steps ensure compliance with Indonesian tax regulations for crypto transactions.
How To Calculate Crypto Taxes in Indonesia?
To calculate your crypto tax in Indonesia, you can use this formula:
Final Income Tax (PPh) = Final PPh rate × transaction value
VAT = (VAT rate × transaction value) + (Additional VAT rate × transaction value)
Example:
If you buy 1 Ethereum for IDR 200 million and sell it for IDR 250 million:
- VAT on Purchase: (0.11% x IDR 200 million) = IDR 220,000
- VAT on Sale: (0.11% x IDR 250 million) = IDR 275,000
- Income Tax on Purchase: (0.1% x IDR 200 million) = IDR 200,000
- Income Tax on Sale: (0.1% x (IDR 250 million – IDR 200 million)) = IDR 50,000
Total Tax: Add VAT and income tax amounts: IDR 220,000 + IDR 275,000 + IDR 200,000 + IDR 50,000 = IDR 745,000.
When Should You File Crypto Taxes in Indonesia?
In Indonesia, you should file your crypto taxes annually, along with your regular income tax return. The deadline for filing your annual tax return (SPT) is typically March 31st of the following year. For example, for income earned in 2024, you would need to file your tax return by March 31, 2025.
Moreover, It’s important to keep detailed records of all your crypto transactions throughout the year to ensure accurate reporting.
Late Filing Penalty
If you file your PPh (Personal Income Tax) return late in Indonesia, you could face penalties. The late filing fee is usually a fixed amount, ranging from IDR 100,000 to IDR 1,000,000, depending on the specific tax type. On top of that, if you delay your tax payment, you’ll incur an interest penalty of 2% per month, which can be charged for up to 24 months.
How Can KoinX Help With Your Crypto Taxes?
Handling crypto taxes in Indonesia can be a daunting task, especially if you’re juggling multiple exchanges, wallets, and digital assets. But with KoinX, managing your crypto taxes becomes much easier. KoinX is an automated platform designed to simplify crypto tax reporting, ensuring you never miss a detail or make costly mistakes. Here’s what makes us unique:
Simplified Integration Across Platforms
KoinX simplifies the process of crypto tax generation by integrating with over 270 platforms, including popular exchanges and wallets. This integration automatically fetches your transaction history, eliminating the need for manual tracking or sorting through numerous statements.
Automatic Transaction Import for Accuracy
Manual data entry can lead to errors, which may result in incorrect tax calculations and potential penalties. KoinX eliminates this risk by automatically importing your transaction data. This feature ensures that every transaction, whether it’s buying, selling, or transferring cryptocurrencies, is accurately recorded.
Unified Portfolio Overview for Clear Insights
Keeping track of your crypto investments is vital for managing your tax obligations. KoinX offers a unified portfolio overview, allowing you to see all your crypto holdings in one place. This feature helps you quickly assess your investments and their potential tax implications. With this consolidated view, you can easily identify taxable events, such as capital gains or losses, and plan your tax strategies accordingly.
Auto-Classification of Transactions According to Tax Laws
Indonesian tax regulations can be complicated, especially for crypto transactions. KoinX’s auto-classification feature categorises your transactions according to Indonesian tax rules. Whether it is buying, selling, or staking, KoinX intelligently assigns the correct tax treatment to each transaction.
This process ensures that your tax report accurately reflects the requirements set by the Indonesian tax authorities, saving you time and effort in understanding and applying these regulations.
Instant Tax Report Export for Compliance
Once KoinX has categorised and calculated all your transactions, it generates a tax report formatted explicitly for the Indonesian tax authorities. This report is ready for submission, allowing you to file your taxes confidently and immediately.
You can easily export this report, ensuring compliance with all necessary regulations while avoiding penalties for incorrect or late submissions.
So why wait? By signing up with KoinX, you can make the complex process of filing your crypto taxes in Indonesia smooth, accurate, and stress-free
Conclusion
Understanding crypto taxes in Indonesia doesn’t have to be overwhelming. You can avoid unnecessary headaches and penalties by staying informed about the latest regulations and knowing how to properly report your crypto income. Make sure you keep detailed records of all crypto transactions; for that you can use KoinX. Our platform is designed to help you manage your crypto taxes effortlessly and ensure you stay on top of your obligations. So register on KoinX today and let go of the hassle of calculating crypto taxes.
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Frequently Asked Questions
Is It Legal To Buy Cryptocurrency In Indonesia?
Yes, it is legal to buy cryptocurrency in Indonesia. Cryptocurrencies were legalised in September 2018 when the Ministry of Trade approved the trading of Bitcoin and other crypto assets as commodities. However, it’s important to note that while you can trade cryptocurrencies, they are not considered legal tender and cannot be used for payments.
Can DJP Track My Crypto Transactions?
Yes, the Directorate General of Taxes (DJP) in Indonesia can track your crypto transactions. This is possible because cryptocurrency transactions are recorded on public blockchains, which are transparent and accessible to anyone.
Is It Mandatory To Declare Cryptocurrency In Indonesia?
Yes, it is mandatory to declare cryptocurrency holdings and transactions in Indonesia. Crypto assets are considered taxable commodities, and you must report any income or gains from crypto trading in your annual tax return (SPT). This includes profits from buying, selling, or trading cryptocurrencies. Failure to declare your crypto assets can result in penalties and interest charges.
Should I Pay Tax On Lost or Stolen Cryptocurrencies?
In Indonesia, the tax treatment of lost or stolen cryptocurrencies isn’t explicitly detailed in the current regulations. However, it is assumed that such transactions aren’t taxable in the eyes of DJP if you can offer the necessary proofs to support your claims.
