Are you a cryptocurrency investor or trader? Have you ever wondered how the tax treatment of crypto assets will be? Want to comply with taxes, but confused about the legal certainty?
The questions above often haunt the minds of crypto asset players in Indonesia. In fact, the development of the world of crypto assets in the country in recent years has been extraordinary. As an illustration, in 2020, the transaction value of digital assets based on blockchain technology is only IDR 69.9 trillion. In 2021, the value will increase many times to Rp 859.4 trillion. Then, during January to March 2022 alone, the transaction value reached IDR 130.2 trillion, with 11.2 million investors (Ministry of Trade, 2022).
However, now all the above worries seem to have been answered. Yes, the government has just issued a regulation that regulates the tax treatment of crypto assets. The regulation in question is the Regulation of the Minister of Finance Number 68/PMK.03/2022 concerning Value Added Tax and Income Tax on Crypto Asset Trading Transactions (PMK-68/PMK.03/2022). The regulation is expected to provide justice, legal certainty, and simplicity for crypto asset players regarding their tax obligations.
VAT and PPh objects
It should be understood, this tax regulation on crypto assets is not a new type of tax. The tax imposition is still based on the types of taxes that have existed so far, for example Value Added Tax (VAT) and Income Tax (PPh). What is regulated here is only the tax collection mechanism. Of course, to provide legal certainty and simplicity earlier.
On this occasion, we will limit the discussion to taxes on crypto asset trading transactions. Trading transactions here include buying and selling crypto assets with fiat currencies, swaps between crypto assets, and exchanging crypto assets for other goods/services. We will not discuss the taxes levied on exchanges trading crypto assets or crypto asset miners.
According to Article 1 number 14 PMK-68/PMK.03/2022, crypto assets are intangible commodities in the form of digital assets, using cryptography, peer-to-peer networks, and distributed ledger, to regulate the creation of new units, verify transactions, and secure transactions without interference from other parties. Based on this definition, crypto assets meet the criteria as objects of VAT in the form of Intangible Taxable Goods (BKP) as stipulated in Article 4 paragraph (1) of Law Number 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods s.t.d.t.d. Law Number 7 of 2021 concerning Harmonization of Tax Regulations (VAT Law and its amendments).
Then Article 5 PMK-68/PMK.03/2022 stipulates that the submission of crypto assets is subject to VAT at a certain amount, namely 1% (if the transaction is made through a registered exchanger at the Commodity Futures Trading Supervisory Agency (CoFTRA), Ministry of Trade), or 2% (if the transaction is made through an exchanger not registered with CoFTRA) of the VAT rate as stipulated in the VAT Law and its amendments. In other words, for now, the VAT rate on the delivery of crypto assets is 0.11% or 0.22% of the transaction value of crypto assets, depending on whether the transaction is carried out through an exchange registered with CoFTRA or not.
The income from trading crypto assets is subject to income tax. Because, there is additional economic capacity that meets the definition of income as regulated in Article 4 paragraph (1) of Law Number 7 of 1983 concerning Income Tax s.t.d.t.d. Law Number 7 of 2021 concerning Harmonization of Tax Regulations (PPh Law and its amendments)
Furthermore, Article 21 PMK-68/PMK.03/2022 stipulates that sellers of crypto assets are subject to Article 22 Final Income Tax on income from trading crypto assets, both trading in foreign currencies fiat money, swaps, or exchange with other goods/services. The amount is 0.1% (if the transaction is made through an exchange registered with CoFTRA) or 0.2% (if the transaction is made through an exchange that is not registered with CoFTRA) of the transaction value of crypto assets.
VAT and PPh Article 22 Final above must be collected by exchangers who are facilitators in crypto asset trading transactions. For this collection, the exchanger is required to issue proof of unification deduction/collection to the transacting parties, in this case the buyers and sellers of crypto assets. Furthermore, the exchanger is required to deposit the Final Article 22 VAT and PPh to the state treasury no later than the 15th of the following month. Then, the exchanger is required to submit a Tax Return (SPT) for the 1107 Put (Modified) VAT Period and an Unification PPh Period SPT no later than 20 days after the tax period ends (the 20th of the following month).
As described above, crypto asset trading transactions include buying and selling crypto assets with fiat currency, swaps between crypto assets, and exchanging crypto assets with other goods/services. Thus, VAT is levied on the party receiving (buyer) the crypto asset. Then, Article 22 Final Income Tax is imposed on the party who releases (the seller) of crypto assets. Let’s discuss one by one with case examples to make it easier to understand.
Buy and Sell with Fiat Currency
In a transaction of buying and selling crypto assets with fiat currency, the transaction value is the value of money paid by the buyer of the crypto asset. If the transaction is made in a foreign currency, the value is converted into rupiah based on the exchange rate determined by the minister of finance (KMK rate). For simplicity, the rupiah currency will be used in the transaction in the following examples.
Andri Kenz owns 1 Botcoin (BOTC) and Dino Salmanan owns rupiah, which is stored in an e-wallet provided by an exchange called WarungKripto. On April 18, 2022, through the platform provided by WarungKripto, Andri Kenz sold 0.5 BOTC to Dino Salmanan at a price of 1 BOTC = Rp1 billion. WarungKripto is an exchanger registered with CoFTRA.
For this transaction, WarungKripto is required to collect VAT from Dino Salmanan in the amount of IDR550 thousand (0.11% x 0.5 BOTC x IDR1 billion). WarungKripto is also required to collect Article 22 Final Income Tax from Andri Kenz in the amount of IDR 500 thousand (0.1% x 0.5 BOTC x IDR 1 billion). Then, for the collection of VAT and PPh Article 22 Final, WarungKripto is required to issue proof of unification deduction/collection, deposit it into the state treasury no later than 15 May 2022, and report the 1107 Put (Modified) VAT Period SPT and Unification PPh Period SPT at the latest May 20, 2022.
Swap between Crypto Assets
In swap transactions between crypto sets, the transaction value is the value of each crypto asset submitted by the transacting parties. This value is the conversion value of crypto assets into rupiah currency based on the value determined by the futures exchange that trades crypto assets or the value in the system owned by the exchange, which is applied consistently.
In this swap transaction, both parties to the transaction are both the parties receiving and releasing crypto assets. So, both parties are equally subject to VAT and Article 22 Final Income Tax.
Continuing the previous case example, on April 20, 2022, Andri Kenz made a swap transaction of 0.3 BOTC which he still has with 30 Othoreum (OTH) owned by Punda Sjahrir through the platform provided by WarungKripto. On April 20, 2022, the conversion value of 1 BOTC and 1 OTH into rupiah currency is Rp. 1 billion and Rp. 10 million, respectively.
For this transaction, WarungKripto is required to collect VAT of IDR330 thousand (0.11% x 30 OTH x IDR10 million) and Article 22 Final Income Tax of IDR300 thousand (0.1% x 0.3 BOTC x Rp1 billion) to Andri Kenz. On the other hand, WarungKripto is also required to collect VAT of IDR 330 thousand (0.11% x 0.3 BOTC x IDR 1 billion) and PPh Article 22 Final of IDR 300 thousand (0.1% x 30 OTH x IDR 10 million) to Punda Sjahrir. Then, for the collection of VAT and PPh Article 22 Final, WarungKripto is required to issue proof of unification deduction/collection, deposit it into the state treasury no later than 15 May 2022, and report the 1107 Put (Modified) VAT Period SPT and Unification PPh Period SPT at the latest May 20, 2022.
Exchange with other goods/services
In practice, crypto assets are like a medium of exchange. Crypto assets can be exchanged for other goods/services. In this case, the value of the transaction is the value of the crypto asset transferred (transferred) to the account of another party. This value is the conversion value of crypto assets into rupiah currency based on the value determined by the futures exchange that trades crypto assets or the value in the system owned by the exchange, which is applied consistently.
Continuing the previous case example, on April 22, 2022, Andri Kenz exchanged the remaining 0.2 BOTC he owned for a Tasle car sold by PT Tasle Cheap Really. On April 22, 2022, the conversion value of 1 BOTC into rupiah currency is Rp. 1 billion. Andri Kenz transferred the 0.2 BOTC to an e-wallet owned by PT Tasle Cheap Really provided by WarungKripto.
For this transaction, WarungKripto is required to collect VAT from PT Tasle Cheap Banget in the amount of Rp220 thousand (0.11% x 0.2 BOTC x Rp1 billion). WarungKripto is also required to collect Article 22 Final Income Tax from Andri Kenz in the amount of IDR 200 thousand (0.1% x 0.2 BOTC x IDR 1 billion). Then, for the collection of VAT and PPh Article 22 Final, WarungKripto is required to issue proof of unification deduction/collection, deposit it into the state treasury no later than 15 May 2022, and report the 1107 Put (Modified) VAT Period SPT and Unification PPh Period SPT at the latest May 20, 2022.
So what about the taxes on the delivery of the Tasle? Upon delivery of the Tasle car, VAT is payable as stipulated in the provisions of the legislation in the field of VAT. Then, on the income from the sale of Tasle cars, PT Tasle Cheap Really is subject to income tax as stipulated in the provisions of the laws and regulations in the field of income tax.
As a cryptocurrency player, we certainly welcome this arrangement that provides justice, legal certainty and simplicity. There will be no more worries because now we are in an “aquarium” which is transparent and the water is clear, with good governance in it. And most importantly, we can contribute to building Indonesia, through crypto assets of course!
Sumber https://pajak.go.id/id/artikel/main-aset-kripto-begini-ketentuan-pajaknya