Due to COVID 19, cryptocurrency gained rapid popularity in Indonesia with crypto asset holders amounting to 11 million by the end of 2021 and crypto investment transactions increased 5 times. While crypto trading is legal in Indonesia, payments with crypto are not allowed. Recently, the Indonesian government announced VAT and income tax rates to be levied on crypto transactions.
Do you have to pay crypto tax in Indonesia?
Yes, crypto is taxed in Indonesia under both income tax and VAT.
When do you have to pay tax on crypto in Indonesia?
All transactions involving crypto are taxable in Indonesia, except transferring crypto from one wallet to another, without any income generation.
What crypto transactions are taxable in Indonesia?
- Purchase of crypto
- Sale of crypto
- Swapping for fiat or another crypto
- Any income from crypto.
What are the Crypto Tax Rates in Indonesia?
|S NO.||TYPE OF TRANSACTION||ARTICLE 22 INCOME TAX RATE||VAT RATE|
|1.||Sale and purchase of crypto asset using fiat currency||0.1%||0.11%|
|2.||Exchange/swap between one crypto to another crypto currency||0.1%||0.11%|
|3.||Exchange between crypto with goods other than crypto and/or service||0.1%||0.11%|
|4.||Provision of electronic platform to facilitate crypto transaction||0.1%||11%|
|5.||Crypto verification service and/or management service of crypto mining pool||0.1%||1.1%|
|6.||Other income from crypto||0.1%||N/A|
Indonesia Income Tax Brackets (2023)
|Taxable income (IDR*)||Tax rate (%)|
|Up to IDR 60 million||5|
|Above IDR 60 million to IDR 250 million||15|
|Above IDR 250 million to IDR 500 million||25|
|Above IDR 500 million to IDR 5 billion||30|
|Above IDR 5 billion||35|
Indonesia Capital Gain Tax Rates (2023)
Capital Gains in Indonesia are taxed at ordinary income rates. However, only stock exchanges and crypto transactions are taxed at 0.1% under capital gain tax rates.
How is Tax Calculated on Cryptocurrency in Indonesia?
On exchanging crypto, the gains made while doing so are taxable. When selling crypto, the profit made from the sale is taxable. While purchasing crypto, the amount you paid is subject to a 0.1% tax rate.
In order to determine the gains made from the sale of crypto, two methods are used: FIFO (First In First Out) and ACB (Average Cost Based).
According to FIFO Method, you sell your oldest acquired coin first and cost is calculated according to the respective prices at which the coin was bought. Whereas, in ACB, time of buying doesnt matter and average cost is taken into account.
Let’s take an example,
Say you bought 2 BTC for IDR 20,000 in 2020 and 4 BTC for IDR 60,000 in 2021. Then you sold 4 BTC in 2022 for IDR 100,000:
- FIFO METHOD
You sell 2 BTC from 2020 and 2 BTC from 2021. So cost price is:
= 20,000 + (2/4)*60,000
= IDR 50,000
Profit = 100,000 – 50,000
Here, taxes are levied on IDR 50,000 .
- ACB METHOD:
All coins are of the same denomination. Therefore, cost price for one coin:
= (20,000 + 60,000)/6
= IDR 13,333
So, cost price of 4 coins:
= IDR 53,333
Profit = 100,000 – 53,333
Here, taxes are levied on IDR 46,666.
Is there any Crypto Tax Free in Indonesia?
Transferring crypto from one wallet to another is not taxable in Indonesia.
Crypto Tax in Indonesia – FAQs
Do you have to pay tax when you buy crypto in Indonesia?
Yes, you have to pay tax when you buy crypto in Indonesia.
Do you have to pay tax when you sell crypto in Indonesia?
Yes, you have to pay tax when you sell crypto in Indonesia.
Do you have to pay tax when transferring crypto in Indonesia?
No, you do not have to pay tax when transferring crypto in Indonesia.
Do you have to pay tax when spending crypto in Indonesia?
Payments via crypto are not allowed in Indonesia.
Is swapping crypto taxable?
Yes, swapping crypto is taxable in Indonesia.
How much tax on crypto gains in Indonesia?
S NO. TYPE OF TRANSACTION ARTICLE 22 INCOME TAX RATE VAT RATE 1. Sale and purchase of crypto asset using fiat currency 0.1% 0.11% 2. Exchange/swap between one crypto to another crypto currency 0.1% 0.11% 3. Exchange between crypto with goods other than crypto and/or service 0.1% 0.11% 4. Provision of electronic platform to facilitate crypto transaction 0.1% 11% 5. Crypto verification service and/or management service of crypto mining pool 0.1% 1.1% 6. Other income from crypto 0.1% N/A
How do I avoid capital gains tax on crypto in Indonesia?
All the transactions are taxable in Indonesia except transferring crypto.