How to Pay Taxes on Crypto Income in Indonesia: Your 2024 Guide

Understanding Crypto Taxation in Indonesia

As cryptocurrency adoption surges in Indonesia, the Directorate General of Taxes (DJP) has clarified regulations requiring investors to pay taxes on crypto income. Since May 2021, crypto assets are classified as “commodities” under BAPPEBTI regulation, making transactions taxable under Indonesian law. Non-compliance risks penalties including fines up to 200% of unpaid taxes and criminal charges. This guide breaks down everything you need to know about reporting crypto earnings accurately.

Types of Crypto Income Subject to Tax

Indonesian taxpayers must declare these crypto-related activities:

• Trading Profits: Gains from selling crypto at higher prices than purchase cost
• Mining Rewards: Value of crypto received from mining operations
• Staking/Yield Farming: Earnings from proof-of-stake networks or DeFi protocols
• Airdrops & Forks: Free token distributions exceeding IDR 10 million annually
• Crypto Payments: Income from goods/services paid in cryptocurrency

How Crypto Taxes Are Calculated

Indonesia applies two primary taxes to crypto:

• Income Tax (PPh):
  • Individuals: Progressive rates (5%-30%) based on annual net profit after IDR 60 million deductible
  • Businesses: 22% corporate tax rate on net gains
• VAT (PPN): 11% levy on crypto purchase transactions (paid by exchanges, passed to users)

Calculation Example: If you buy 1 BTC for IDR 500 million and sell for IDR 700 million:
Taxable Profit = IDR 200 million
After IDR 60 million deduction = IDR 140 million
Tax (assuming 15% bracket) = IDR 21 million

Step-by-Step Tax Reporting Process

1. Track Transactions: Maintain records of all buys/sells/trades using crypto tax software or spreadsheets
2. Calculate Net Gains: Subtract total costs (purchases + fees) from total sales revenue
3. File SPT Tahunan: Report earnings in your annual tax return via DJP Online:
   • Use Form 1770 for individuals
   • Enter profits under “Other Income” (Penghasilan Lainnya)
4. Pay Before Deadline: Settle liabilities by March 31 following the tax year

Penalties for Non-Compliance

Failure to report crypto income may result in:

• 2% monthly interest on unpaid taxes (max 48%)
• Administrative fines up to 200% of owed amounts
• Criminal prosecution for severe evasion cases
• Asset freezes or travel bans for high-value defaults

FAQs: Crypto Taxes in Indonesia

Q: Do I pay tax if I hold crypto without selling?
A: No – taxes apply only upon disposal (selling, trading, or spending).

Q: Are losses deductible?
A: Yes – capital losses can offset gains within the same tax year.

Q: How does VAT work for crypto purchases?
A: Exchanges add 11% VAT when you buy crypto. This is separate from income tax on profits.

Q: Must I report small crypto earnings?
A: Only if annual net profits exceed IDR 60 million (approx $3,800). Below this, no tax is due.

Q: Can the DJP track my crypto transactions?
A: Yes – Indonesian exchanges must report user data to tax authorities under PMK-68/2023 regulation.

Q: Are NFTs taxed differently?
A: No – NFT sales follow the same commodity tax rules as cryptocurrencies.

Staying Compliant in 2024

With Indonesia tightening crypto oversight, maintaining detailed transaction records is essential. Use authorized exchanges like Tokocrypto or Indodax that automatically deduct VAT and provide tax reports. Consult a certified tax advisor for complex cases involving DeFi or cross-border transactions. By declaring crypto income accurately, you avoid penalties while supporting Indonesia’s growing digital economy.