The Directorate General of Taxes (DJP) at the Ministry of Finance is finalizing regulations for taxation on crypto asset transactions.

The tax treatment of crypto assets is shifting from being categorized as commodities to financial instruments, which requires adjustments in tax rules.

Crypto Moves from Commodity to Financial Instrument

Director General of Taxes Bimo Wijayanto explained that crypto was initially regulated as part of commodities.

With the shift to financial instruments, the tax rules need to be revised accordingly.

“We initially regulated crypto as part of commodities. When it transitions into a financial instrument, the rules must be adjusted,” said Bimo on Tuesday (July 22, 2025).

Further details on the tax collection plans were not disclosed by Bimo.

VAT on Crypto Transactions by Digital Platforms

Referring to Ministry of Finance Regulation (PMK) No. 68/2022, income from crypto trading is subject to income tax and value-added tax (VAT).

The taxable base includes sale price, replacement value, import/export value, or other values used to calculate the tax.

VAT on crypto transactions is collected from consumers by the crypto asset sellers. The VAT rates are:

• 1% of the transaction value if the Electronic System Operator (PMSE) is a physical crypto asset trader.
• 2% if the PMSE is not a physical crypto asset trader.

VAT collection happens when:

• Buyers pay PMSE for crypto assets.
• Crypto assets are exchanged to another account or swapped among crypto assets.
• Crypto assets are transferred to another account in exchange for non-crypto goods.

The PMSE must report collected VAT using the SPT Masa PPN 1107 PUT form.

Income Tax on Crypto Sellers and Miners

Income tax (PPh) applies to PMSE or digital companies earning from crypto sales and to crypto miners. According to the regulation:

“Income received or obtained by crypto asset sellers related to crypto transactions is taxable income,” the PMK states.

Income tax rates under Article 22 are:

• 0.1% of the transaction value (excluding VAT and luxury goods sales tax) if PMSE has government approval to sell crypto.
• 0.2% if PMSE lacks such approval.

PHOTO: UNSPLASH

This article was created with AI assistance.