CoFTRA: Many Customers Transactions Abroad Are Impacted by Crypto Tax in Indonesia

Liputan6.com, Jakarta – The government officially imposes taxes on crypto assets through Regulation of the Minister of Finance of the Republic of Indonesia Number 68/PMK.03/2022 which has been in effect since May 1 2022. This Minister of Finance Regulation regulates Value Added Tax (VAT) and Income Tax (PPh) on crypto asset trading transactions.

Regarding this, the Head of the Commodity Futures Trading Development and Development Bureau (Bappebti), Tirta Karma Senjaya, said that crypto taxes in Indonesia have an impact on the value of domestic crypto transactions.

“The current tax imposition increases costs for customers. Many customers make transactions on foreign exchanges,” said Tirta in the Indodax Talkshow, written on Wednesday (28/2/2024).

Tirta added that the imposition of two taxes on crypto assets, namely PPH and VAT, is because crypto assets are currently still considered commodities. Tirta hopes that the crypto tax can be charged in half considering that the crypto industry in the country is still new.

“If it is imposed directly on a large scale, the Indonesian crypto industry is still embryonic. Overall the crypto industry is still new. Industries that are still new need to be given room to grow,” said Tirta.

Regarding the transition of crypto asset supervision from Bappebti to the Financial Services Authority (OJK), it is hoped that this will be an evaluation for the Director General of Taxes because later crypto assets will enter the financial sector.

“Usually there is an evaluation of taxes if the tax on crypto assets is not reduced, at least it is not subject to PPh and VAT. We and the association are ready to coordinate with the Director General of Taxes,” continued Tirta.

However, according to Tirta, taxation on crypto assets makes an extraordinary contribution to the country. In fact, crypto asset tax is more than 50 percent of fintech tax.

From the perspective of industry players, Indodax CEO, Oscar Darmawan hopes that VAT tax for crypto assets will be eliminated and PPh will only be charged like transactions on the stock market.

“Regulatory developments are getting better in Indonesia with the existence of crypto taxes, both PPh and VAT, but with no VAT, it is better,” he concluded.

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