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An overview by PB Taxand, Taxand Indonesia
In Indonesia, crypto asset transfers treated as securities are VAT-exempt, but services facilitating trading – provided by Electronic Trading System Operators (ETSO) or miners – are subject to VAT, calculated on commissions or remuneration and payable in rupiah. ETSOs and miners must collect, remit, and report VAT, issuing invoices equivalent to tax invoices.
Income from crypto asset transactions is subject to Income Tax Article 22: domestic ETSOs collect a final 0.21% tax on sellers’ income, while foreign ETSOs collect 1%. ETSOs’ own income from providing trading channels, wallets, transfers, deposits, and storage is taxed under general income tax rules.
Operators providing only e-wallets or simply connecting buyers and sellers are exempt, and all foreign currency or crypto payments must be converted to rupiah for tax purposes.
Tax experts from our Indonesian member firm PB Taxand have published a more detailed overview of this approach, which can be read here.
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Compliance | Digital Economy | Income Tax | Indirect Tax | Indonesia | OECD | Tax | VAT