The Indonesian government, through the Ministry of Finance, has issued two important regulations, namely PMK 50/2025 and PMK 53/2025. These regulations revise the tax treatment of crypto asset transactions. The new rules, effective from August 1, 2025, have a significant impact on crypto traders, exchanges, and miners in Indonesia.

VAT Abolished on Crypto Asset Transactions

One of the most significant changes is the abolition of Value Added Tax (VAT) on crypto assets. PMK 53/2025 removes articles from the previous regulation, PMK 11/2025, that governed the collection of VAT on crypto asset transactions.

Previously, PPN was imposed with an effective tariff of 1% for crypto asset physical traders (PFAK) and 2% for non-PFAK exchanges. Additionally, crypto miners were subject to VAT with an effective tariff of 10% x 11/12 of the standard VAT rate. With the new regulation, the delivery of crypto assets, which are treated as securities, is no longer subject to VAT. This means that starting from August 1, 2025, the sale of crypto assets will not be subject to VAT anymore.

Increase in PPh Final Rate and New Tax Treatment

While VAT has been abolished, the Income Tax (PPh) treatment has been adjusted. Based on Article 10 of PMK 50/2025, income received by crypto asset sellers, PPMSE, or crypto miners is considered income subject to PPh.

The PPh Pasal 22 final tax rate on the sale of crypto assets has been set at 0.21%. This tariff is higher compared to the previous rate of 0.1%. Furthermore, income received by electronic system providers (PPMSE) and crypto miners is also a taxable object subject to PPh. It should be noted that their income will be subject to PPh based on the general tariff according to the Income Tax Law and must be reported in the annual tax return (SPT Tahunan).

Summary of Important Changes:

• Crypto Asset VAT: VAT is abolished starting August 1, 2025.
• PPh Final for Sellers: The final PPh tariff has been increased to 0.21%.
• PPh for PPMSE & Miners: Their income is subject to the general PPh tariff and must be reported in their annual tax returns.

These changes reflect the government’s efforts to refine the tax framework amid the rapid development of the crypto market. While the removal of VAT is a welcome change for many, the increase in the final PPh rate and the clearer tax obligations for PPMSE and miners are crucial details that must be considered by all parties involved in the crypto asset ecosystem in Indonesia.