Changes to Crypto Transaction Taxation Under Minister of Finance Regulation Number 50/2025

The Government has introduced a new regulatory framework governing the taxation of crypto asset transactions, covering both the taxation of crypto transactions and services related thereto. One of the most significant changes under this policy is the abolition of Value Added Tax (“VAT”) on crypto transactions.

The removal of VAT provides a direct impact in the form of reduced transaction costs, thereby easing the burden of crypto transactions. This policy is expected to enhance the competitiveness of the national crypto industry by positioning domestic platforms more favorably compared to foreign platforms.

By increasing the attractiveness of domestic platforms, the Government aims to encourage a shift in transaction volume towards local platforms, which in turn is expected to expand the economic value of the national crypto industry. Moreover, the increase in transactions conducted through domestic platforms will broaden the state’s revenue base, particularly through Income Tax imposed on crypto transactions and related services.

Overall, this policy reflects the Government’s effort to balance the need for increasing state revenue with the objective of strengthening a sustainable crypto transaction in Indonesia. Find out more our insights about this topic in our Legal Brief publication.

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