Crypto Tax Levies Adjusted to Digital Asset Characteristics

The government is finalizing the Draft Regulation of the Minister of Finance on Value-Added Tax (Pajak Pertambahan Nilai - “PPN”) and Income Tax (Pajak Penghasilan - “PPh”) on Crypto Asset Trading Transactions (“Draft Regulation”). One of the points encourages the tax treatment of crypto assets to be adjusted to the characteristics of digital financial assets.

“We hope that the tax rules will eventually align with the nature of digital assets, no longer as high as when crypto assets were still considered commodities,” said Hasan Fawzi, Executive Director of the Financial Technology Innovation Supervisory Authority (Inovasi Teknologi Sektor Keuangan - “ITSK”), Digital Financial Assets, and Crypto Assets at the Financial Services Authority (Otoritas Jasa Keuangan - “OJK”), to Hukumonline.

This policy will also focus on provisions related to Electronic Trading System Operators (Perdagangan Melalui Sistem Elektronik - “PMSE”) which are part of the cryptocurrency ecosystem. The role of PMSE is considered crucial in ensuring that governance and tax oversight operate optimally in the dynamic digital realm.

“It is still under discussion and harmonization among government agencies,” he concluded.