On 30 March 2022, the Minister of Finance (“MoF”) issued a new regulation No. 68/PMK.03/2022 (“PMK-68”) regarding Value Added Tax (“VAT”) and Income Tax on Crypto Asset Trading Transactions as the implementation of Law on Harmonization of Tax Regulations No. 7/2021 whereby sale of crypto assets is a commodity and income from crypto asset transactions is defined as any increase in economic capacity received by a Taxpayer from Indonesia as well as from offshore.

The main points of this regulations are summarized as follows:

1. VAT
   

   Withholding Agent of VAT	Taxable Goods/ Services Type	Details of Goods and Services	VAT Rate	Other Information
   Trade Operator through Electronic System	Intangible Goods in the form of Crypto Assets	·      Trading transaction using fiat currency ·      Swap of crypto assets for crypto assets ·      Swap of crypto assets for goods and/or services other than crypto assets	·      1% (if trade operator is a physical trader of crypto assets) ·      2% (if trade operator is not a physical trader of crypto assets)	·      VAT should be settled by 15th of the following month at the latest ·      VAT should be reported by 20th of the following month at the latest through a Monthly VAT Return of 1107 PUT
   Trade Operator through Electronic System	Providing electronic services for crypto asset trading transactions	·      Trading transaction using fiat currency ·      Swap of crypto assets for crypto assets ·      Electronic wallets, including deposits and withdrawals of funds, transfer of crypto assets to accounts of other parties ·      Provision/ management of crypto asset storage media	11% of the value of the commission or service fee	·      A tax invoice should be issued invoice if the trade operator is a VATable Entrepreneur ·      Should be reported through Monthly VAT Return
   Crypto Asset Miner	Verification services and/or mining pool management services	Fees in connection with the verification of services and/or crypto asset mining group management (mining pool) transactions	10% of the VAT rate multiplied by the value of the crypto asset	·      A tax invoice should be issued if the miner is a VATable Entrepreneur ·      Should be reported through Monthly VAT Return

    

2. Income Tax
   

   Tax subject	Details of Income	Income Tax Tariff	Other Information
   Trade Operator through Electronic System	·      Trading transaction using fiat currency ·      Swap of crypto assets for crypto assets ·      Other crypto asset transactions	·      Article 22 Income Tax of 0.1% from the transaction value excluding VAT (if trade operator is a physical trader of crypto assets) ·      Article 22 Income Tax of 0.2% from the transaction value excluding VAT (if trade operator is not a physical trader of crypto assets)	·      Unification WHT slip should be issued ·      The WHT slip could be certain documents to represent unification slip ·      Article 22 WHT should be settled by the 15th of the following month at the latest ·      Should be reported by the 20th of the following month at the latest through the Unification Income Tax Return
   Crypto Asset Seller that is exempted as Article 22 Income Tax Agent	Income earned on crypto asset transactions	·      Article 22 Income Tax of 0.1% from the transaction value (excluding VAT) (if trade operator has obtained approval from the authorized official) ·      Article 22 Income Tax of 0.2% from the transaction value (if trade operator has not obtained approval from the authorized official)	·      Should be settled by the Crypto Asset Seller by the 15th of the following month at the latest ·      Automatically reported if it has received validation with NTPN
   Trade Operator through Electronic System	Income derived from providing electronic trading of crypto assets	General rate according to Income Tax Law
   Trade Operator through Electronic System on its own behalf	Income derived from providing electronic trading of crypto assets	Income Tax based on Article 21
   Crypto Asset Miner	Service fees in the form of block rewards, transaction fees, other income	Income Tax of 0.1% of income received	Should be settled by the Crypto Asset Miner
   Crypto Asset Miner through electronic system trading provider	Service fees in the form of block rewards, transaction fees, other income	Income Tax based on Article 21

PMK-68/2022 becomes effective on 1 May 2022.