In Indonesia, cryptocurrencies are currently classified as commodities or assets rather than legal tender or currency. They are treated as intangible assets for tax purposes. Various types of cryptocurrency transactions, including buying, selling, mining, and trading, are categorized as capital transactions subject to capital gains tax.
Taxable events for cryptocurrencies include selling, exchanging, or disposing of cryptocurrencies for fiat currency or other assets. Additionally, mining activities that result in the creation of new cryptocurrencies may also trigger tax liabilities.
Tax liabilities on cryptocurrencies are calculated based on the gains realized from cryptocurrency transactions. The gain is typically determined as the difference between the selling price of the cryptocurrency and its acquisition cost, adjusted for any relevant expenses.
Gains from cryptocurrency transactions are subject to capital gains tax, while losses may be deductible against other capital gains. Specific rules and documentation requirements may apply for reporting gains and losses from cryptocurrency transactions.
Rates: Value-added tax (VAT) and income tax on crypto asset transactions and capital gains set at 0.1% each.
There are currently no specific exemptions or deductions available for cryptocurrency transactions in Indonesia. However, individuals or entities may be eligible for general tax deductions or credits applicable to capital gains.
Applicable Law: The taxation of cryptocurrencies in Indonesia is governed by Law No. 36 of 2008 on Income Tax ("Undang-Undang Nomor 36 Tahun 2008 tentang Pajak Penghasilan").
Articles of the Law:
- Article 4(1)(b) of Law No. 36/2008 includes gains from the sale of cryptocurrencies as one of the categories of income subject to taxation.
- Article 17 outlines the general provisions for calculating taxable income, including gains from capital transactions.
- Article 4(2)(c) specifies that gains from the sale of cryptocurrencies are subject to corporate income tax.
