Upcoming Tax Policies for Crypto Transactions

Date of Post

April 5, 2022

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lemonadecares

The Directorate General of Taxes (DGT) will stipulate income tax (PPh) and value-added tax (VAT) for crypto-asset transactions. The tax imposed is final at 0.1%. “That’s right, PPh 0.1% and VAT 0.1%, all final,” said Director of Tax Regulation I DGT, Hestu Yoga Saksama in the DGT media briefing quoted on Sunday (03/04).

The decision will be contained in an MoF Regulation, so that PPh and VAT for the purchase of crypto assets will be implemented starting May 1, 2022. According to Yoga, the government deliberately imposes VAT and PPh because Bank Indonesia (BI) and the Ministry of Trade have determined crypto as a commodity, not a means of payment. “Crypto is indeed subject to VAT because it is not money, BI never said it was a means of payment. Commodity Futures Trading Regulatory Agency (Badan Pengawas Perdagangan Berjangka Komoditi/Bappebti) of the Ministry of Trade considers it a commodity,” continued Yoga.

Meanwhile, on the same occasion, the Expert Staff of the MoF for Tax Compliance, Yon Arsal explained that the procedure for collecting crypto taxes will later be the same as when buying shares. Later, some parties will cut or collect taxes from investors. “In the derivative information, we will apply the principle of convenience, so I convey that the transaction model is more or less the same as shares on the stock exchange,” said Yon Arsal.

In accordance with the Currency Act, the only rupiah is used as a legal tender, while cryptocurrencies are still prohibited as a means of payment in the country. However, crypto is agreed upon as a commodity futures exchange, so it doesn’t matter as long as it is used as an investment or as a commodity traded by market participants.

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