How to Report Crypto Income in Indonesia: A Complete Tax Guide

As cryptocurrency adoption surges in Indonesia, understanding how to report crypto income is crucial for compliance with tax regulations. The Indonesian government classifies crypto assets as commodities subject to taxation under PMK-68/PMK.03/2022. Failure to report accurately can lead to penalties, audits, or legal consequences. This guide breaks down Indonesia’s crypto tax framework into actionable steps, helping you navigate obligations confidently.

Understanding Indonesia’s Crypto Tax Regulations

Indonesia’s Directorate General of Taxes (DJP) mandates that all crypto transactions—including trading, mining, staking, and airdrops—are taxable events. Key principles include:

• Capital Gains Tax: Applies to profits from selling crypto. Taxed at 0.1% per transaction for VAT and 0.1% for Income Tax (final tax).
• Withholding Tax: Crypto exchanges deduct 0.1% income tax on every transaction automatically.
• Taxable Threshold: No minimum exemption—all crypto income must be reported regardless of amount.
• Non-Taxable Events: Transferring crypto between personal wallets or buying crypto with fiat isn’t taxed.

Records must be maintained for 10 years, including transaction dates, values in IDR, and counterparty details.

Step-by-Step Guide to Reporting Crypto Income

1. Gather Transaction Records
   Compile data from all exchanges (e.g., Tokocrypto, Indodax), wallets, and DeFi platforms. Use CSV exports or third-party tools like Koinly for reconciliation.
2. Convert to IDR
   Calculate the IDR value of each transaction using Bank Indonesia’s exchange rate on the transaction date.
3. Calculate Taxable Income
   Sum all profits from sales, mining rewards, staking yields, and airdrops. Deduct allowable costs like trading fees.
4. File SPT Tahunan (Annual Tax Return)
   Report crypto income under “Penghasilan Lainnya” (Other Income) in Form 1770/1770S. Include total gains and taxes withheld by exchanges.
5. Pay Outstanding Balances
   If taxes withheld are less than 0.1% of total gains, settle the difference via bank transfer to DJP. Deadlines align with annual tax returns (March 31).
6. Keep Audit-Ready Documentation
   Store transaction histories, exchange statements, and tax calculations securely.

Common Crypto Tax Mistakes to Avoid

• Ignoring Small Transactions: Even minor trades or rewards must be reported.
• Using Incorrect Exchange Rates: Always apply BI’s daily rate, not platform approximations.
• Overlooking DeFi Activities: Yield farming, liquidity mining, and governance rewards are taxable.
• Mishandling Losses: Crypto losses can’t offset other income taxes—only reduce future crypto gains.
• Missing Deadlines: Late filings incur 2% monthly penalties on unpaid taxes.

Frequently Asked Questions (FAQ)

Do I pay tax if I hold crypto without selling?

No—tax applies only upon disposal (selling, trading, or spending crypto).

How is crypto received from airdrops or forks taxed?

Yes, these are treated as ordinary income at fair market value when received.

Can I deduct crypto investment losses?

Losses reduce taxable crypto gains within the same year but can’t be carried forward.

Are foreign exchange transactions reportable?

Yes—all transactions, even on international platforms like Binance, must be declared.

What if I use crypto for purchases?

Spending crypto is a taxable disposal event. You must calculate gains based on acquisition cost.

Pro Tip: Use DJP’s e-Filing portal for seamless reporting and consult a tax consultant bersertifikat for complex cases. Staying compliant not only avoids penalties but also legitimizes your crypto activities in Indonesia’s evolving digital economy.