Indonesia eliminates VAT on crypto, raises income tax to support local platforms
The government has eliminated the Value Added Tax (VAT) on cryptocurrency transactions while increasing the final income tax (PPh Article 22) rate, as outlined in the newly issued Finance Minister Regulation (PMK) No. 50/2025, which tackes effect on August 1, 2025.
Director General of Taxes at the Ministry of Finance, Bimo Wijayanto, said that the removal of VAT was due to a regulatory shift that now classifies crypto assets as securities.
“VAT is no longer applied because (crypto assets) now meet the characteristics of securities,” Bimo told reporters at the Tax Directorate General headquarters on Thursday evening, July 31, 2025.
To compensate the…
