One Year on, Fintech and Crypto Tax Provisions Contribute IDR 885 billion

JAKARTA. Rolling out a year ago, tax provisions on Financial Technology (Fintech) and crypto asset trading operators have contributed IDR 885.8 billion in state revenue.

Previously, the imposition of fintech and crypto taxes was contained in Minister of Finance Regulation (PMK) Number 69/PMK.03/2022, a derivative of the Law on Harmonization of Tax Regulations (HPP).

The provision shall come into force on 1 May 2022. However, the tax collection began on 1 June 2022. Two types of taxes are imposed: Value Added Tax (VAT) and Income Tax (PPh).

Read: Fintech and Online Loans are New Targets for Government Taxation

Regarding fintech transactions or what is often called online lending, there are two types of income tax imposed, namely Income Tax Article (ITA) 23 and ITA 26. ITA 23 is set on loan interest provided to domestic taxpayers and permanent establishments.

Meanwhile, ITA 26 is imposed on loan interest received by foreign taxpayers (WPLN) and non-permanent establishments at 20% or adjusted to the Double Tax Avoidance Agreement (P3B) or tax treaty between countries.

Quoting kontan.co.id, the total fintech tax revenue has reached IDR 502.4 billion by the end of July 2023, consisting of ITA 23 of IDR 367.95 billion, and ITA 26 of IDR 134.42 billion.

Meanwhile, the government has also pocketed crypto taxes with a value of IDR 383.42 billion consisting of ITA 22 on crypto asset transactions through trading through domestic electronic systems (PPMSE DN) and self-payment of IDR 181.21 billion and Domestic VAT on collection by non-treasurers of IDR 202.21 billion. (ASP/KEN)