How to Report DeFi Yield in Indonesia: Complete Tax Guide & Compliance Steps

Understanding DeFi Yield Taxation in Indonesia

Decentralized Finance (DeFi) has revolutionized how Indonesians earn passive income through yield farming, staking, and liquidity mining. However, with innovation comes regulatory responsibility. Indonesia’s Directorate General of Taxes (DJP) classifies DeFi earnings as taxable income under PMK-68/PMK.03/2022. Failure to report these gains can result in penalties up to 200% of unpaid taxes. This guide simplifies compliance for Indonesian crypto investors navigating this complex landscape.

Is DeFi Yield Taxable in Indonesia?

Yes. According to Indonesian tax regulations:

• All crypto-to-crypto or crypto-to-fiat conversions are taxable events
• Yield from staking, lending, or liquidity pools qualifies as “Other Income” (PPh Pasal 4 Ayat 2)
• Tax rates range from 0.1% to 30% based on annual income brackets
• Non-residents earning yield from Indonesian platforms face 20% withholding tax

Step-by-Step Guide to Reporting DeFi Yield

Step 1: Track All Transactions

• Use portfolio trackers like Koinly or CoinTracker
• Export CSV files from exchanges/wallets monthly
• Record: Dates, asset types, yield amounts, and IDR values at transaction time

Step 2: Calculate Taxable Income

• Convert yield to IDR using BI’s exchange rate at receipt time
• Deduct verifiable costs (gas fees, platform charges)
• Separate short-term (<1 year) vs long-term holdings for rate differences

Step 3: File Through Official Channels

1. Register for NPWP if unregistered
2. Use e-Filing on pajak.go.id
3. Report under “Penghasilan Lainnya” (Other Income) in SPT Tahunan
4. Pay via virtual accounts listed on DJP Online

Essential Documentation for Compliance

• Wallet addresses and transaction IDs for all yield receipts
• Bank statements showing fiat conversions
• Screenshots of DeFi platform dashboards
• Records of acquisition costs for staked assets
• DJP’s Form 1770S/1770 for individual taxpayers

Penalties for Non-Compliance

Indonesian tax authorities enforce strict consequences:

• 2% monthly interest on unpaid taxes
• Administrative fines up to Rp50 million
• Criminal charges for evasion exceeding Rp50 billion
• Asset freezing for repeat offenders

FAQs on DeFi Yield Reporting in Indonesia

Q: Are stablecoin yields taxed differently?
A: No. All yield—whether in stablecoins, ETH, or tokens—is taxed as income at IDR value when received.

Q: How do I report yield from foreign DeFi platforms?
A: You must still declare it. Use the platform’s transaction history and convert to IDR using Bank Indonesia’s daily rate.

Q: Can losses from impermanent loss offset taxes?
A: Yes. Documented liquidity pool losses can reduce taxable income if reported accurately.

Q: Is there a minimum threshold before I must report?
A> No. All DeFi yield must be reported regardless of amount per PMK-68/2022.

Q: When are taxes due?
A> Annually by March 31st for individuals, with monthly prepayments required if you’re a registered business entity.

Staying Compliant in 2024

Indonesia’s DJP is increasing crypto tax audits using blockchain analytics tools. Consult certified tax advisors (like those registered with IAPI) for complex cases. Maintain immutable records for 10 years as required by Law No. 28/2007. As regulations evolve, subscribe to DJP’s newsletter for updates on crypto taxation.