TL;DR
From tax year 2026, income received by crypto asset miners in Indonesia is no longer subject to 0.1% final PPh Article 22. Mining income now falls under the general PPh rates of Article 17 of Law No. 7 of 1983 (as last amended by the HPP Law). In parallel, the VAT rate on verification services rendered by miners to the network, classified as Taxable Services (JKP), rises from 1.1% to 2.2%. The legal basis is Minister of Finance Regulation No. 50 of 2025 (MoF Reg 50/2025).
What Changed
Before MoF Reg 50/2025, Indonesian crypto miners faced a single simple PPh layer: 0.1% final Article 22 of the crypto asset value received. That approach came from MoF Reg 68/PMK.03/2022, which still treated crypto assets as commodities.
With Law No. 4 of 2023 on Financial Sector Development and Strengthening (UU P2SK), crypto assets were reclassified from commodities to digital financial assets. MoF Reg 50/2025 aligns the implementing rules.
The PPh provisions on miners apply from tax year 2026. With the transition period now closed, miners receiving block rewards, transaction fees, or similar compensation throughout 2026 must follow the new regime.
Who Is a Crypto Miner
A crypto miner is a party that verifies transactions on a blockchain network and receives new crypto assets or transaction fees as compensation. MoF Reg 50/2025 technically defines this as a party rendering crypto verification services.
In Indonesia, mining covers proof-of-work (e.g. Bitcoin), staking, and similar consensus models, as long as identifiable verification services are rendered.
PPh Rate: Article 17 of the PPh Law
For individual taxpayers, the progressive rates under Article 17(1)(a) apply: 5%, 15%, 25%, 30%, and 35% brackets.
For corporate taxpayers, the single 22% rate under Article 17(1)(b) applies.
This means miners must keep proper books for income and related expenses. Hardware (rigs, GPUs, ASICs), electricity, rent, and other operating costs may qualify as deductions from gross income provided they meet the 3M test under Article 6 of the PPh Law.
VAT Rate: Raised to 2.2%
Verification services by miners remain Taxable Services. What changed is the specific-rate VAT applied to such services.
The specific-rate VAT rises from 1.1% to 2.2% of the converted value of crypto assets at the time of receipt. The aim is to align the VAT burden on miners with the post-MoF Reg 50/2025 ecosystem.
Administrative Obligations
Miners without an NPWP should register promptly. PKP (VAT-registered) status is mandatory if verification-service turnover exceeds IDR 4.8 billion in a single book year, under Article 3A of the VAT Law.
Reporting obligations include monthly VAT returns (SPT Masa PPN) and annual income tax returns (SPT Tahunan PPh), individual or corporate. Withholding evidence previously generated under the 0.1% final PPh 22 mechanism is no longer relevant for mining rewards from 2026.
Impact on Taxpayers
Administrative burden rises substantially. Comprehensive bookkeeping is no longer optional. On the upside, treating mining as regular income unlocks expense recognition that was unavailable under the prior final-tax regime.
Small-scale individual miners may consider the Net Income Calculation Norm (NPPN) option under Article 14 of the PPh Law if turnover stays below IDR 4.8 billion.
Transition Notes
The DGT has yet to publish detailed technical guidance on reporting mining rewards in the annual tax return under the new regime. While guidance is pending, miners should: first, separate operational and personal wallets. Second, document the timestamp and IDR-converted value of each reward at the moment of receipt, using the Ministry of Finance tax rate of exchange. Third, archive electricity bills and rig ownership records as supporting evidence for cost deductions.
Integration with Coretax as the new reporting system is the next step, especially for small-scale miners entering the bookkeeping regime for the first time.
Official References
Readers who want the full text can access MoF Reg 50/2025 via JDIH Kemenkeu. The DGT's official commentary is available on pajak.go.id, including the articles MoF Reg 50/2025: A New Era for Crypto Asset Taxation and Tax Aspects of Crypto Transactions Then and Now.