Indonesia Introduces New 0.21% Income Tax on Crypto Transactions

New Tax Rule Takes Effect August 1

Starting August 1, 2025, crypto asset purchases in Indonesia are now subject to a final income tax (PPh) of 0.21% per transaction value, according to Minister of Finance Regulation (PMK) No. 50/2025. The regulation, signed by Finance Minister Sri Mulyani, replaces the previous tax rules outlined in PMK No. 81/2024, which set lower income tax rates of 0.1% or 0.2%.

Income Tax Rises as VAT is Eliminated

The adjustment reflects a policy shift in how crypto assets are classified and taxed. According to Bimo Wijayanto, Director General of Taxes at the Ministry of Finance, the increase in income tax accompanies the removal of the value-added tax (VAT) on crypto transactions.

“The tax rate of 0.21% is derived by combining the previous 0.1% income tax rate with the now-removed 0.11% VAT,” explained Bimo. “This change follows the reclassification of cryptocurrencies from commodities to digital financial assets, aligning them more closely with securities.”

As a result, crypto assets will no longer be subject to VAT due to their financial instrument nature.

Domestic vs. Foreign Platforms

The new regulation also distinguishes between domestic and foreign crypto trading platforms. Domestic Electronic Trading System Providers (PPMSE) are required to collect the 0.21% PPh on each transaction. However, foreign PPMSEs face a higher final income tax rate of 1% on crypto transactions, adding further incentives for users to trade on local platforms.

Regulation Welcomed by Crypto Industry

Indonesia’s leading crypto exchange, INDODAX, expressed support for the new regulation, calling it a step forward for legal clarity and tax structure in the digital asset industry.

Oscar Darmawan, Chairman of INDODAX, praised the regulation, stating that PMK 50/2025 demonstrates the government’s commitment to building a more structured and measurable tax framework for digital assets.

“We appreciate the legal clarity provided by this regulation. Setting the VAT at 0% is a major milestone that aligns crypto with other financial products that are also VAT-exempt,” Oscar said in a statement released Friday, August 1, as quoted by CNBC Indonesia.

Simplification and Strategic Benefits

Oscar highlighted the strategic importance of eliminating VAT on crypto, which he believes simplifies reporting and encourages users to trade on regulated local platforms.

“A 0% VAT is a smart, forward-looking move. It will improve cost-efficiency in transactions and foster trust in compliant platforms,” he said.

He added that this shift would help strengthen Indonesia’s legal and transparent digital asset trading ecosystem, enhancing public confidence in the crypto sector.

Paving the Way for Growth

Oscar emphasized that a clear and structured tax policy like PMK 50/2025 can significantly increase public and investor participation in Indonesia’s growing and increasingly competitive digital asset market.

“We believe this kind of structured taxation provides a strong foundation for the sustainable growth of the crypto industry. INDODAX is fully prepared to support the technical and operational implementation of this policy,” he concluded.