The imposition of a crypto asset tax has a positive impact, says the CEO of indodax - Navigasi Berita a -->
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The imposition of a crypto asset tax has a positive impact, says the CEO of indodax

Navigasi - The local crypto exchange company in Indonesia, namely Indodax, has made tax deposits from the results of the PMK 68 regulation (Value Added Tax (VAT) and Income Tax (PPh) on crypto asset trading transactions of Rp. 58 billion. The PMK 68 regulation has been in effect since 1 May This 2022 is welcomed by Indodax as an industry player.

Indodax CEO Oscar Darmawan said Indodax supports the implementation of the PMK 68 tax which has a positive impact on investors and crypto industry players. “This is clear evidence of Indodax as a company that contributes to the country. Indodax will continue to be committed to carrying out its tax obligations,"

Indodax CEO Oscar Darmawan said that the imposition of taxes on crypto asset trading by the government would have a positive impact from a legal perspective. As is known, the Ministry of Finance (Kemenkeu) issued the Minister of Finance Regulation (PMK) Number 68/PMK.03/2022 concerning Value Added Tax and Income Tax on Crypto Asset Trading Transactions. The PMK explains that starting May 1, 2022, trading crypto assets will be subject to Value Added Tax (VAT) and Income Tax (PPh).

According to him, as a physical trader of legal crypto assets that has been regulated by the Commodity Futures Trading Regulatory Agency (CoFTRA), Indodax has an obligation to collect VAT and PPh for every investor who makes buying and selling transactions on its platform.

“Previously, crypto was recognized as a commodity through regulations from the Ministry of Trade (Kemendag) and regulated by an institution called CoFTRA. On the positive side, with the imposition of taxes on crypto, I think it will increase the legality of crypto as a digital commodity that is recognized and legally traded," he said in a written statement in Jakarta, quoted by on Friday (29/04).

Although the imposition of taxes has a positive side, he added that it certainly raises pros and cons in the domestic crypto community regarding the amount of transaction fees or fees that will be charged to investors, which will increase by 0.1 percent for PPh and 0.11 percent. for VAT.

As a tax-compliant crypto asset trader, Oscar continued that in this case Indodax will certainly comply with existing regulations, although as an industry player he hopes that the percentage of the tax rate can be lowered over time so that the fees can be cheaper.

"This tax regulation will be launched for the first time on May 1st. While we look at the development of domestic crypto consumers. However, I hope that over time the tax rates will be lower,” he said.

In addition, Oscar reminded that domestic crypto investment should not be sluggish due to this policy. This is of course very unfortunate considering the high trend of crypto investment provides great opportunities for the growth of Indonesia's digital economy.

"This also happens so that the domestic industry is not less competitive with foreign crypto industries," he added.

But on the other hand, as an industry player, Oscar also feels good regarding the fast steps of the government issuing the PMK regulation, so that there is legal certainty regarding the ownership of crypto assets. Crypto asset traders who transact on CoFTRA regulated exchanges will be subject to a final tax of 0.21 percent and which will definitely be much cheaper than transacting on exchanges that are not designated as tax collectors where these traders will be subject to normal income tax rates.

"With this PMK, I think this is a signal from the government that we crypto asset traders must be tax-compliant from now on, especially since the government has provided tax incentives like this. Through this PMK, crypto asset traders get the convenience of tax rates for transactions on crypto exchanges registered and regulated by CoFTRA,” he concluded.