Indonesia MOF Issues Ministerial Regulation Clarifying Tax Treatment of Digital Currency Transactions

The Indonesian Ministry of Finance March 30 issued Ministerial Regulation No. 68/PMK.03/2022, clarifying the tax treatment of digital currency transactions. The regulation includes measures to: 1) set a 0.1 percent tax rate on the transaction value, excluding VAT; 2) set a 0.2 percent tax rate on transactions performed through an electronic system; 3) impose a 10 percent VAT rate on income from digital currency mining; 4) set a 1 percent VAT rate on the transaction value of digital currency for trades done through an electronic system by a trader; 5) set a 2 percent VAT rate on the transaction value ...