Indonesia's Crypto Tax Regulations 2025: What Will Change Starting August 1st?

Bittime - The Indonesian government is reforming its crypto asset tax regulations, which will take effect on August 1, 2025.

This amendment shifts the fiscal treatment of crypto from VAT-taxable goods to financial instrument-like treatment, thereby eliminating VAT on crypto sales but introducing and/or increasing final income tax levies on transactions.

In summary: VAT on crypto sales has been removed; transactions will be subject to final Article 22 Income Tax of 0.21% for domestic exchanges and 1% for foreign exchanges. 

The following statement summarizes the key changes and their implications.

Core Tax Changes (PMK & New Rules)

Starting August 1, 2025, the Ministry of Finance issued a regulation redefining crypto assets as specific financial instruments, not simply commodities subject to VAT upon delivery. As a result:

• VAT on transfers of crypto assets removed(Crypto sales/purchases are no longer subject to VAT). However, related services (e.g., platform services, certain mining services) may still be subject to VAT in accordance with the service provisions.
  
   
• Final Income Tax Article 22 levied on the sale of crypto assets: tariffs 0,21%from the transaction value for transactions through domestic Electronic Trading System Providers (PPMSE); and1%For transactions through overseas PPMSE, PPMSE acts as a collector and withholding agent.
  
   
• Specific provisions for miners and supporting services are subject to change (e.g., VAT charges on supporting services and changes to the mining tax treatment). Some analyses suggest that input taxes for mining will be increased on a specific basis.

Official sources from the Directorate General of Taxes and the Ministry of Finance also explain the collection mechanism and certain exceptions for foreign subjects who can show proof of tax residency.

Read Also: OJK Issues Crypto Asset Trading Regulations

Why Did the Government Change This Rule?

The changes aim to:

1. Streamlining crypto transactionswith financial instruments to avoid overlapping taxes (e.g. double VAT).
   
    
2. Improving fiscal certaintyand facilitate tax collection through PPMSE (exchange platform) as a collector.
   
    
3. Securing state revenuefrom the rapidly growing crypto activity—shifting the tax burden from VAT to final income tax collected directly per transaction.

Impact on Investors & Industry Players

• Effective transaction costs changeEven if VAT is omitted, sellers/transaction participants will experience a final income tax deduction (0.21%/1%), which is final—directly deducted from sales proceeds. For small-scale trades, the difference may be small; however, for large volumes, the final tax is important to consider.
  
   
• Preference to domestic vs foreign exchangesThe 0.21% domestic rate is significantly lower than the 1% foreign rate, making the local exchange potentially more competitive. However, foreign investors or those using foreign exchanges should be wary of the higher tax burden.
  
   
• Impact on exchange business models: PPMSE (exchanges) are responsible for collecting, reporting, and remitting final income tax; this adds to the operational and system compliance burden for exchanges—especially for foreign exchanges serving Indonesian users.
  
   
• Miners & service providersAlthough crypto sales are exempt from VAT, mining and related services may still be subject to VAT or be subject to different tax treatment. Some analyses suggest that mining tax treatment has undergone adjustments.

Read Also: What is Tax Amnesty? Will There Be a Third Version in the Purbaya Era?

Suggested Practical Steps

1. Check reports and exchange systems: make sure the platform where you trade has implemented PPh deductions according to PMK.
   
    
2. Include tax costs in trading calculations: adjust the buying and selling strategy so that the internal margin is still healthy after the final income tax.
   
    
3. For those who receive payment: if you receive crypto as income, consult your tax advisor regarding the income/corporate tax treatment.
   
    
4. Foreign investors: prepare tax domicile documents if you want to claim exemptions or different treatment.
   
    
5. Industry players (exchange, miners): update collection/reporting system & prepare compliance workflow.

Read Also: This is the Risk of Hyperinflation from Finance Minister Purbaya's 200T Policy

Conclusion

Indonesia's crypto tax reforms effective August 1, 2025, are a significant step toward more mature regulation: eliminating VAT on crypto sales but imposing final income tax per transaction.

For investors and industry players, technical adaptation, reporting, and strategic adjustments are key to achieving compliance without sacrificing business efficiency.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

FAQ

What are the main changes to crypto taxes as of August 1, 2025?

The main thing is: VAT on crypto sales removed, And Final Article 22 Income Tax enforced: 0,21%for transactions via domestic exchanges and 1% for overseas exchanges.

Who collects taxes on crypto transactions?

The Electronic System Trade Organizer (PPMSE / exchange) acts as a collector/deductor who collects the final PPh and deposits it into the national treasury.

Are miners also affected by the new tax?

Miners remain taxed on their income, and some tax provisions for supporting services (including VAT on certain services) are regulated differently; the details depend on the Ministerial Regulation and its derivative regulations.

How does it affect retail users?

For retail users, transaction costs may vary slightly: even without VAT, final income tax still adds to the deduction when selling crypto. For high-volume traders, the impact is more pronounced.