The Indonesian government, through the Ministry of Finance, has officially set a final income tax (PPh final) rate of 0.21% on cryptocurrency transactions, as regulated under Minister of Finance Regulation (PMK) Number 50 of 2025. This new rule will come into effect on Friday, August 1, 2025.

However, the same regulation also amends a previous provision, now stating that cryptocurrency assets are no longer directly subject to Value Added Tax (VAT), contrary to earlier policies.

Under the new policy, cryptocurrency is treated similarly to securities, meaning it is exempt from VAT, in line with Article 4A, Paragraph (2), Letter d of Law Number 8 of 1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods.

As written in Article 2, Paragraph (1) of the regulation: "The transfer of Cryptocurrency Assets, which are treated the same as securities, is not subject to Value Added Tax," according to the regulation quoted on Wednesday, July 30, 2025.

Nevertheless, the regulation excludes certain taxable services, such as those provided by electronic platforms (PMSE) facilitating cryptocurrency trading, as well as taxable services related to transaction verification performed by crypto miners.

These services remain subject to VAT, as stipulated in PMK Number 131 of 2024, which has been effective since the beginning of this year.

From an income tax perspective, the PPh rate has increased, where previously it ranged between 0.1% and 0.2%. The updated regulation also defines the tax subjects under PPh, which include crypto asset sellers, crypto exchanges or electronic trading platforms, and crypto miners, as stated in Article 10 on Income Tax Treatment for Earnings Related to Crypto Assets.

The taxable crypto-related activities include: buying and selling using fiat currency, swapping one crypto asset for another, and the use of e-wallets—such as depositing, withdrawing, transferring crypto to third-party accounts, and providing and/or managing crypto storage facilities.

The implementation of income tax on crypto trading also considers the transfer of supervisory authority over the digital finance industry to the Financial Services Authority (OJK), in accordance with the mandate of the Financial Sector Development and Strengthening Law (UU P2SK) Number 4 of 2025.