Indonesia Officially Taxes Crypto Assets 1 May 2022

Rancakmedia.com – The government through the Ministry of Finance (Ministry of Finance) has finally officially taxed crypto asset transactions and mining activities starting May 1, 2022.

This was confirmed by the Special Staff of the Minister of Finance, Yustinus Prastowo today. An important first step towards realizing the national tax reform agenda, under his policy.

In Sri Mulyani's words, this strategic initiative represents the desire to balance society and eliminate injustice.

“A new round of taxation in Indonesia. For the sake of justice and equality, starting May 1, 2022, Indonesia will officially collect crypto taxes," he said. On Thursday, April 7, he made the announcement via his personal Twitter account, @prastow.

The final VAT rate is 0.11 percent, and the final PPh 22 rate is 0.10 percent," he said. As for crypto proponents, the amount of tax collected is much larger but still in a sliding group.

It is important to note that “Crypto mining” is subject to VAT 1.1% and final PPh 22 0.1%, according to him.

For information, this cryptocurrency tax imposition decision is a continuation of Law Number 7 of 2021 concerning Harmonization of Tax Regulations (HPP) (HPP).

This large regulatory umbrella was then lowered by technical regulations in Minister of Finance Regulation (PMK) Number 68/PMK.03/2022 concerning Value Added Tax and Income Tax on Crypto Asset Trading Transactions.

In addition to the crypto tax, Sri Mulyani also issued 13 additional PMKs as part of the expansion of the HPP Law.

Indonesia Officially Taxes Crypto Assets 1 May 2022

The Indonesian government stipulates crypto assets as subject to Value Added Tax (VAT) and income from digital asset trading transactions is subject to Income Tax (PPh) (PPh).

Those involved in buying and selling transactions, as well as those who offer verification services and/or management services to those in the mining and sales industry, will be taxed from May 1, 2022. -buy crypto assets .

This policy is contained in Minister of Finance Regulation Number 68/PMK.03/2022 concerning Value Added Tax and Income Tax on Crypto Asset Trading Transactions which are implementing rules of the Law on Harmonization of Tax Regulations (HPP). ) (HPP).

Minister of Finance Sri Mulyani Indrawati in this policy pointed out that the reason for the government to impose taxes on crypto assets is because digital asset transactions have become widespread in society and have become commodities traded on the futures market.

Therefore, in accordance with the statutory provisions in the trade sector, the delivery of crypto assets is included in the VAT object group and income from trading is considered an economic addition that must be subject to Income Tax Article 22.

"To ensure legal clarity, convenience and administrative ease of collecting, depositing and reporting taxes on trading crypto assets, (the government) must regulate laws related to value added tax and income tax," he wrote in PMK No. 68/PMK.03/2022.

Previously, Singapore and India also intended to tax the trading of virtual digital assets or Non-Fungible Tokens (NFT), following the example of the United States and Australia which previously adopted this policy. (AGS)

Conclusion

Minister of Finance Sri Mulyani announced that Indonesia officially taxed crypto assets as of May 1, 2022. Yustinus Prastowo guaranteed that the rates charged were quite low and set. "Crypto mining" is subject to 1% VAT and 0.1% final PPh. 22.

Crypto assets will be taxed starting May 1, 2022. Value Added Tax (VAT) and income from digital asset trading transactions are subject to Income Tax . This policy is contained in Minister of Finance Regulation Number 68/PMK.03/2022.