Crypto asset sale VAT exempt; but trading and mining services taxable
Indonesia is overhauling its approach to taxing cryptocurrency as part of its effort to align digital assets with traditional financial instruments. A new regulation—Minister of Finance Regulation (PMK) Number 50 of 2025, signed by Finance Minister Sri Mulyani on 25 July 2025, and effective the start of August 2025—introduces significant changes for crypto investors, exchanges, and miners.
This reflects the global VAT position in other jurisdictions including: Canada; EU; UK; UAE: Thailand;
Crypto Asset Sales Exempt from VAT
Under the new rules, crypto asset transactions will no longer be subject to Value Added Tax (VAT). The government has formally reclassified crypto assets as financial securities rather than commodities, meaning that their transfer is treated like the sale of stocks or bonds. This exemption is outlined in Chapter II, Article 2, Paragraph 1 of PMK 50/2025.
The shift eliminates VAT on the sale or transfer of crypto assets, providing legal clarity and easing tax compliance for traders. It also reflects Indonesia’s broader policy move to treat digital assets like other financial instruments.
Service Providers Face New VAT Rules
While the sale of crypto itself is now VAT-exempt, platforms and service providers remain subject to taxation:
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Crypto exchanges and electronic trading platforms will charge VAT on services such as trading facilitation, asset swaps, and digital wallet transactions.
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Crypto mining and verification services face a new effective VAT rate of 2.2%, up from 1.1%, while the 0.1% special income tax on mining is abolished. From 2026, mining income will be taxed under the standard corporate or personal income tax rates.
These measures are designed to simplify tax collection, payment, and reporting, while ensuring the government captures revenue from crypto-related service activities rather than asset transfers themselves.
A Growing Crypto Market
The changes come amid a surge in Indonesia’s crypto market, which now counts over 20 million users and a transaction volume of 650 trillion rupiah (~$40 billion) in 2024—more than triple the previous year. By removing VAT on asset transfers and clarifying obligations for service providers, the government aims to balance market growth with tax compliance.
In summary, Indonesia’s new tax framework exempts crypto asset sales from VAT but targets exchanges and miners with service-based VAT, signaling the country’s transition toward treating digital assets as mainstream financial products.
