New crypto tax starts 1 May – find out more about what this means for you
Through the Regulation of the Minister of Finance (PMK / Peraturan Menteri Keuangan (PMK) Number 68/PMK.03/2022, the Indonesian government has recently issued a new regulation related to tax for crypto assets.
There will be two types of tax imposed towards crypto transactions, which are value added tax (VAT / PPN) and final income tax (FIT / PPh). Referring to this Regulation, the establishment and the tax regulation will be effective on 1 May 2022.
Types of applicable tax and crypto asset transaction
Both Value Added Tax and Final Income Tax shall be imposed to the crypto asset transactions for Indonesian. The tax percentage set by the government is
- 0.11% Value Added Tax for crypto asset buying transactions
- 0.1% Final Income Tax for crypto asset selling transactions
What does this mean for Luno’s customers?
We always aim to provide an easy and practical service for our customers, including the process of tax collection for your crypto transactions in our app.
Change of Fee for Wallet Transactions
In order to help you comply with these tax regulations, there is a change in service charge fee, which is inclusive with 0.11% VAT and 0.1% FIT. The fee includes the tax you need to pay (applied for buying and selling transactions) and the admin fee for Wallet function in the Luno app.
For example, if you want to buy Rp100,000 worth of Ethereum ETH (ETH) using rupiah in your Luno app, you will be charged an admin fee of Rp1,100 (1.1% of Rp100,000will be collected from your rupiah balance. This fee includes the transaction’s admin fee by Luno as well as the tax imposed on your Ethereum buying transaction. This means need to have at least Rp101,000 in your rupiah Wallet.
Example of tax scheme for crypto asset bought using rupiah (crypto-fiat)
Here is an example of the amount of tax you need to pay when you buy or sell crypto assets:
- Buying crypto assets using rupiah
You want to buy Ethereum (ETH) using Rp1,000,000. You will be charged Value Added Tax of 0.11% from the total transaction. The calculation is as follows:
VAT / PPN = 0.11% x 1,000,000 = Rp1,100
The tax above (PPN) is added to your buying transaction because when you buy the crypto asset, your asset or the value you have increases, in this case, it is in the form of crypto.
- Selling crypto assets to rupiah
You want to sell Ethereum (ETH) with the value of Rp1,000,000. You will be charged Final Income Tax of 0.1% from the total transaction.
PPh = 0.1% x 1,000,000 = Rp1,000
The tax above (PPh) is imposed on your selling transaction because when you sell the crypto asset, you receive money from your buying transaction.
Change of crypto send fees
Apart from changing to an admin fee on buy and sell transaction, the send fee for crypto assets between wallets or exchanges (on-chain) is also subject to VAT of 0.11%. However, sending crypto between Luno customers (off-chain) are free of charge.
The crypto-crypto trading pair is disabled
Other than the change above, crypto/crypto trading pairs in both your Luno Wallet and on the Luno Exchange will be disabled from 29 April to comply with the Regulation of the Minister of Finance No. 68 Year 2022. Don’t worry, you can still buy and sell your crypto asset in the Luno app using fiat (rupiah). We are sorry for any inconvenience caused.
Frequently Asked Questions
Which regulations stipulate the taxes on crypto asset Transactions?
The Regulation of the Minister of Finance (PMK / Peraturan Menteri Keuangan) Number 68/PMK.03/2022. You can download the PMK by clicking this link.
When will the crypto asset tax regulation be effective?
The tax collection and other crypto asset tax regulations is effective as of 1 May 2022.
What is the impact of this crypto asset tax to Luno’s customers?
Value Added Tax will be directly imposed on the transaction of crypto asset buying using rupiah in the Luno app based on the applicable rate. The amount of crypto assetS reflected in your crypto Wallet shall be the Net amount after tax.
Final Income Tax will be directly imposed on the transaction of crypto asset buying using rupiah in the Luno app based on the applicable rate. The amount of rupiah reflected in your IDR Wallet shall be the Net amount after tax.
With this new regulation, the existence of crypto assets will be more acknowledged and will gain positive support from the government. As a good citizen, you should comply with the tax regulations, including the taxes on your crypto asset transactions. You can ask your inquiries or share your comments in our social media, or contact us through email at email@example.com if you need any assistance regarding the taxes on crypto assets in the Luno app or other inquiries.