Jakarta, July 31, 2025 — The Indonesian government, through the Ministry of Finance, has officially issued Peraturan Menteri Keuangan (PMK) Nomor 50 Tahun 2025 which states that crypto assets are no longer subject to Value Added Tax (VAT). This policy takes effect starting August 1, 2025, and is part of the government’s effort to simplify tax regulations and encourage the growth of the digital ecosystem in Indonesia.

In the regulation signed by Minister of Finance Sri Mulyani Indrawati, crypto asset trading transactions are explicitly excluded from VAT objects, replacing the previous provision under PMK Number 68 of 2022 which imposed a 0.11% VAT on crypto transactions.

“The removal of VAT on crypto assets aims to create a more competitive digital investment climate, aligned with the principle of tax neutrality treatment on digital assets,” said Director General of Taxes, Suryo Utomo, at a press conference in Jakarta, Wednesday (7/31).

Final Income Tax Still Applies

Although crypto is no longer subject to VAT, it is still subject to Final Income Tax (PPh Final) of 0.1% of the transaction value when conducted through a registered crypto trading platform. This provision still refers to the previous PMK and has not been changed in PMK 50/2025.

Impact on Industry

Several industry players have welcomed this policy positively. The CEO of a local crypto exchange stated that the removal of VAT would make transactions more efficient and could increase trading volume.

“This move shows the government’s seriousness in supporting digital innovation and blockchain technology,” said Rizky Aditya, CEO of Bursa Digital Nusantara.

Step Toward Digital Tax Harmonization PMK 50/2025 is also part of the tax harmonization steps in the digital sector, in line with the acceleration of Indonesia’s digital economic transformation. The government is striving to balance potential tax revenues with support for the growth of innovative sectors such as crypto assets, NFTs, and Web3