4 May 2022

Following the newly enacted Tax Regulation Harmonisation Law No. 7 of 2021, Indonesia’s Minister of Finance (the “MoF”) has issued several implementing regulations pertaining to the collection of financial technology, crypto assets and virtual-based activities. In essence, the issuance of the implementing regulations aims to accelerate economic recovery in Indonesia as well as to create greater legal certainty with regard to the implementation of tax obligations.

Below are the key takeaways from the implementing regulations.

Imposition of Withholding Tax and Value Added Tax on Financial Technology Sectors

Effective on 1 May 2022, the MoF issued Regulation No. 69/PMK.03/2022 (“MoF Reg 69/2022”) sets out the imposition of tax for the financial technology services sector:


Type of Financial Technology ServicesType of Tax ImposedRemarks
Peer-to-peer lending services (“P2P”)

MoF Reg 69/2022 requires lenders to report in their annual tax return, the loan interest income received by them from borrowers.

Article 23 sets the imposition of withholding tax on domestic taxpayer and permanent establishment. Such loan interest will be subject to a 15% tariff of the gross amount.Imposition of withholding taxes on permanent and non-permanent establishments, and domestic and foreign taxpayers.
Article 26 sets the imposition of withholding tax on foreign taxpayer and non-permanent establishment. Such loan interest will be subject to a 20% tariff of the gross amount.
Payment service

This includes electronic money, electronic wallets, payment gateways, switching services, clearing, final settlements and transfers of funds.

Value Added Tax (“VAT”) in the amount of 11%.VAT will be imposed on the delivery of financial technology services by the entrepreneur.

The VAT tax base includes fees, commissions, or other rewards in any name and in any form received by the financial technology service providers.

Money in the form of electronic money or electronic wallets, such as bonus points, top-up points, reward points, and loyalty points are goods; fund placement or funding services through a P2P platform; financing services and online insurance services are not subject to VAT.

Settlement of investments
Capital accumulation
P2P Investment management
Online insurance
Market support

This includes the provision of comparative data in relation to products and financial services.

Other supporting services that relate to digital financial services and other financial services

This includes the following services:

  • eco-crowdfunding;
  • Islamic digital financing, e-waqfe-zakat;
  • robo-advice and credit ratings;
  • invoice trading;
  • vouchers and tokens; and
  • blockchain-based products.


Imposition of Income Tax and VAT on Crypto Assets Transactions

The imposition of income tax and VAT on trade transaction of crypto assets is regulated under the MoF’ Value Added Tax and Income Tax on Crypto Assets Trading Transaction Regulation No. 68/PMK.03/2022 (“MoF Reg 68/2022”) which came into force on 1 May 2022. Under MoF Reg 6/2022, the deliveries of the following are subject to VAT:

  1. intangible taxable goods, i.e., crypto assets;
  2. provision of electronic facilities services that are used for the trading of crypto assets by Trade through Electronic Systems Provider or Penyelenggara Perdagangan Melalui Sistem Elektronik (“PPMSE”), i.e., exchanger and e-wallet providers;
  3. crypto asset verification services (mining); and
  4. crypto asset mining pool services.

Below is a summary of the taxes imposed in relation to crypto assets transactions:


PartyTax ImposedRemarks
Crypto assets transactions
  • Final Income Tax Article 22 will be imposed either in the amount of 0.1% of the value of the crypto assets value for PPMSE that is registered under Commodity Futures Trading Regulatory Agency or Badan Pengawas Perdagangan Berjangka Komiditi (“Bappebti”), or in the amount of 0.2% of the value of the crypto assets value for PPMSE that have yet to be registered under Bappebti.
  • VAT in the amount of 0.11% will be imposed if PPMSE is registered under Bappebti, or 0.22% if PPMSE has yet to be registered under Bappebti.
MoF Reg 68/2022 stipulates that VAT will not be imposed for the following crypto assets transactions:

  • if the amount of money paid by the purchaser of the crypto assets if the payment is in the form of currency;
  • if the value of each crypto asset submitted in the transaction is a transaction by way of a crypto assets swap; and
  • if the value of crypto assets is transferred to the account of another party.

There are several selling transactions of crypto assets that will not be the subject of Final Income Tax Article 22 as regulated under MoF Reg 68/2022, i.e.:

  • the seller of crypto assets is a foreign taxpayer domiciled in countries that already have a double taxation avoidance agreement with Indonesia; and
  • the seller of crypto assets submits a tax resident domicile certificate outside the partner country or double taxation avoidance agreement partner jurisdiction to the trade organizer through the domestic electronic system.
PPMSE (marketplace) servicesVAT in the amount of 11% will be imposed for the delivery of services through electronic systems.
Mining services
  • Final Income Tax (Article 22) in the amount of 0.1% of the crypto assets income will be imposed.
  • VAT will be imposed in the amount of 1.1% of the crypto asset value.


Imposition of Non-Tax State Revenue on Virtual-Based Activities

At the end of 2021, the MoF issued the Types and Tariffs of Volatile Non-Tax State Revenue Applicable at the Ministry of Communication and Informatics Regulation No. 177/PMK.02/2021 (“MoF Reg 177/2021”). Under MoF Reg 177/2021 which comes into force from 7 January 2022, the volatile Non-Tax State Revenue or Penerimaan Negara Bukan Pajak (“PNBP”) applies to organisations conducting the following activities:

  1. training (whether basic, intermediate, advanced, and non-level training) which may be conducted by way of offline, online or a combination of both;
  2. industrial labor practices for students; and
  3. competency test (divided from level 1 to level 7) which may be conducted offline and/or online.

MoF Reg 177/2021 sets the amount of applicable PNBP to the above activities based on the following conditions:

  1. if conducted virtually, the applicable PNBP is in the amount of 80% of the offline rate (for virtual training and virtual competency tests); and
  2. if conducted by way of a combination of offline and virtual, the applicable PNBP is in the amount of 85% of the offline rate (for combo-based training).

Please also note that subject to the prior approval of the MoF, the above fares may be charged at IDR 0.00 or 0% under certain conditions that are further regulated under the Minister of Communication and Informatics Regulation.

If your businesses are affected by the regulations, please contact us for our comprehensive advice.

If you have any questions or require any additional information, please contact Hanim Hamzah, Hillary Tjandra, or David Septian Lienardo of Roosdiono & Partners (a member of ZICO Law).

This alert is for general information only and is not a substitute for legal advice.


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