Jakarta, CNBC Indonesia – The government imposes value added tax (VAT) and income tax (PPh) rates with a value greater than crypto assets registered with the Commodity Futures Trading Supervisory Agency (CoFTRA).
The imposition of the VAT and PPh rates will be levied through trade providers through an electronic system (PPMSE) that facilitates transactions, both buying and selling crypto assets.
This rule will take effect from 1 May in accordance with Minister of Finance Regulation (PMK) Number 68 of 2022 concerning Income Tax and Value Added Tax on the Implementation of Financial Technology (Fintech).
Head of the Sub-Directorate of Value Added Tax for Trade, Services and Other Indirect Taxes, Directorate General of Taxes (DGT), Ministry of Finance, Bonarsius Sipayung explained that the basis for the withdrawal of VAT and PPh was seen from the movement of crypto assets themselves.
“When the asset moves, from one account to another. Whether it is in the context of buying and selling or in the context of an exchange, it is VAT payable. […] It’s not in the context of the money that comes out of the e-wallet and VAT is payable,” Bonarsius explained in a media briefing, Wednesday (6/4/2022).
Therefore, the parties responsible for collecting VAT and PPh are those who facilitate the buying and selling of crypto assets. DGT noted that currently there are 13 marketplaces that have been recognized as parties for buying and selling crypto assets and registered with CoFTRA.
Now, the DGT revealed that lower rates will apply to PPMSE registered with CoFTRA. Bonarsius explained that the difference in rates was because PMSE, which is a PFAK and registered with CoFTRA, has a neater administrative system so that its activities can be monitored by CoFTRA.
“If PPMSE is a physical trader of crypto assets (PFAK) registered with CoFTRA, the VAT rate is 1% of the VAT rate or 0.11% multiplied by the value of crypto assets and the final PPh 22 rate is 0.1%,” he said in a media briefing. , Wednesday (6/4/2022).
As is known, in Article 3 paragraph (2) of PMK 68/2022, it is explained that the submission of crypto assets that are payable VAT is buying and selling crypto assets using fiat currency, exchanging crypto assets, and exchanging crypto assets with goods other than crypto assets and/or service.
If done through a CoFTRA registered exchanger, the VAT rate charged is 0.11%. If the exchanger is not registered, the VAT rate will be 0.22%.
In terms of income tax, Article 20 paragraph (2) of PMK 68/2022 states that income related to crypto asset transactions can be in the form of fiat currency payment transactions, exchange of crypto assets, and other transactions.
The final Article 22 income tax imposed is 0.1%. If the transaction is made through an unregistered exchanger, the final Article 22 income tax rate will be 0.2%.