1 month ago
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January 5, 2025 | 10:49 pm
TEMPO.CO, Jakarta - Crypto asset industry players in Indonesia hope that they will not be subject to value added tax (VAT) in order to accelerate the adoption of crypto assets as an inclusive and innovative financial instrument in Indonesia. Indodax CEO Oscar Darmawan stated that the nature of crypto is similar to financial transactions so that crypto can be exempted from VAT, as has been implemented in several other countries.
"With the elimination of VAT, it has the potential to increase state revenue from final income tax (PPh) on crypto transactions," he said in his statement in Jakarta, Saturday, January 4, 2025.
This, he added, is because the volume of crypto trading can grow larger than the current conditions, as the cost burden for market players decreases. "We believe that balanced regulations will create a more conducive ecosystem. In many countries, crypto assets are not subject to VAT because they are considered part of financial transactions," he said.
Oscar hopes that Indonesia can also consider similar policies to support the growth of the crypto asset industry in the country. However, he continued, currently his party remains compliant with the latest tax regulations by adjusting the VAT rates that will be effective starting January 1, 2025.
This adjustment is in accordance with the Regulation of the Minister of Finance (PMK) No. 131 of 2024 and PMK No. 81 of 2024, which regulate VAT rates for crypto asset transactions and certain other goods.
Now, according to him, the VAT rate for crypto asset purchase transactions through Physical Crypto Asset Traders (PFAK) is set at 0.12 percent of the transaction value. Meanwhile, other transactions, such as deposit fees, rupiah withdrawal fees, and trading fees, are subject to an effective VAT rate of 11 percent, in accordance with PMK No. 131 of 2024 Article 3.
Oscar explained that VAT is imposed on these transaction fees, not on the amount of money deposited or withdrawn. This provision is part of the government's efforts to provide special tax treatment for crypto assets, considering their unique nature and different from conventional goods or services. "As an industry player, we ensure full compliance with applicable regulations by consulting intensively with relevant authorities, including the Tax Office," he said.
The adjustment of VAT rates, he added, is an important step in supporting tax transparency in Indonesia while ensuring the security and convenience of transactions for Indodax platform users.
On that occasion, he emphasized that members need not worry, because all costs at Indodax include tax components, CFX fees, and so on. "Thus, all costs are automatically paid, so that the use of the Indodax platform becomes simpler and easier for members," he said.
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