Crypto Taxes in Indonesia are Very High, Here’s the Review

Cryptocurrency Taxes have become a hot topic in Indonesia, especially with the increasing popularity and adoption of digital assets in the country. Many cryptocurrency investors and users are confused about how tax regulations apply to their transactions and investments in the crypto world. This article will review the high cryptocurrency taxes in Indonesia and how tax regulations can impact digital market participants in the country.

Cryptocurrency Taxes in Indonesia

Since being recognized as a legal asset in Indonesia in 2018, cryptocurrency has attracted the interest of many investors and users across the country. However, despite its increasing popularity, the Indonesian government considers this digital asset as a significant tax subject.

  1. Income Tax (PPh) Income tax is one of the main taxes imposed on cryptocurrency transactions in Indonesia. Income tax on profits from trading, investing, and exchanging cryptocurrency is levied according to the rates set by the government. These rates can vary depending on the type of activity and the amount of profits generated.
  2. Value-Added Tax (PPN) In addition to income tax, value-added tax also applies to some cryptocurrency transactions. VAT is imposed on the buying and selling of certain digital assets and related services in Indonesia. Users and market participants must be aware of VAT obligations when participating in digital asset transactions.
  3. Corporate Income Tax (PPh Badan) For companies or businesses operating in the cryptocurrency field, corporate income tax is also levied on the profits they gain from digital asset transactions and operations. Corporate income tax rates are determined based on the company’s income scale.

High Crypto Taxes and Their Impact

Strict and high tax regulations for cryptocurrency in Indonesia have created several impacts on market participants and users of digital assets.

  1. Tax Compliance Complex and high tax regulations make it challenging for some cryptocurrency users and investors to understand their tax obligations. Some may struggle to calculate and pay the correct taxes, leading to compliance issues with tax authorities.
  2. Impact on Trading and Investment High cryptocurrency taxes can influence the interest of investors to trade or invest in digital assets in Indonesia. Some investors may shift to markets with lower taxes, affecting the liquidity of the crypto market in Indonesia.
  3. Potential Tax Evasion Strict tax regulations can also increase the potential for tax evasion in the cryptocurrency market. Some market participants may attempt to avoid tax payments or hide their profits, leading to losses in state revenue.


Cryptocurrency taxes in Indonesia are a serious concern for users and market participants in the digital asset space. High and complex tax regulations can impact tax compliance, investment, and market liquidity. To create a healthier and more beneficial environment for the crypto market in Indonesia, it is crucial for the government to reconsider existing tax policies and find wiser ways to regulate these digital assets.

It is important for all parties involved in the cryptocurrency market to understand and comply with applicable tax regulations. In doing so, they can contribute to the sustainable development and wider adoption of blockchain technology and digital assets in Indonesia.


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