How to Report Airdrop Income in Indonesia: A Complete Tax Compliance Guide

## Introduction
Receiving free crypto tokens through an airdrop feels like winning a digital lottery—but in Indonesia, it’s also a taxable event. With the Directorate General of Taxes (DJP) enforcing strict crypto asset regulations under PMK-68/2023, failing to report airdrop income can lead to penalties. This guide explains how to legally declare your airdrop earnings, calculate taxes, and avoid common mistakes. Stay compliant and maximize your crypto gains!

## Understanding Airdrop Income and Indonesian Tax Laws
Airdrops involve free distributions of cryptocurrency tokens or NFTs to wallet addresses, often as marketing rewards or protocol incentives. Under Indonesian tax regulations:

– Airdrops qualify as “Other Income” (Penghasilan Lainnya) per Article 4 of Income Tax Law.
– Taxability is based on PMK-68/2023, which classifies crypto assets as taxable commodities.
– You owe tax on the token’s fair market value at the moment you gain control of it—not when you sell it.

## How Airdrops Are Taxed in Indonesia
Indonesian tax treatment depends on your taxpayer status:

– **Individual Taxpayers**: Airdrop value is added to annual taxable income, subject to progressive rates (5%-35%) based on total yearly earnings.
– **Corporate Entities**: Taxed at a flat 22% corporate rate under Article 17.

**Valuation Rules**:
– Convert token value to IDR using exchange rates from reputable platforms (e.g., Indodax, Tokocrypto) at receipt time.
– Example: Receiving 100 XYZ tokens worth Rp500,000 means declaring Rp500,000 as income.

## Step-by-Step Guide to Reporting Airdrop Income
Follow these steps for compliant reporting:

1. **Record Transaction Details**: Log the date, token amount, wallet address, and IDR value at receipt.
2. **Calculate Taxable Income**: Sum all airdrop values received during the tax year.
3. **File Annual Tax Return (SPT Tahunan)**:
– Use Form 1770 for individuals.
– Report total under “Penghasilan Lainnya” (Other Income) in Section B.
4. **Pay Outstanding Tax**: Settle dues by March 31st for electronic SPT submissions via bank transfer or DJP Online.
5. **Document Everything**: Keep exchange records, wallet histories, and valuation proofs for 10 years.

## Common Reporting Mistakes to Avoid
Steer clear of these errors:

– **Ignoring Small Airdrops**: All income must be reported, regardless of amount.
– **Incorrect Valuation**: Using sale price instead of receipt-day value.
– **Omitting Subsequent Sales**: Selling airdropped tokens later triggers capital gains tax—report profits separately.
– **Poor Record-Keeping**: Failing to store transaction evidence risks audits.

## Frequently Asked Questions (FAQ)
### Is airdrop income really taxable if I didn’t sell the tokens?
Yes. Indonesian law taxes the value at receipt, not sale. Control over the tokens establishes taxable income immediately.

### How do I value airdrops for tokens not listed on Indonesian exchanges?
Use the token’s value on major global exchanges (e.g., Binance, Coinbase) converted to IDR at the time of receipt. Apply Bank Indonesia’s daily exchange rate if needed.

### What if I receive airdrops worth less than the Non-Taxable Income (PTKP) threshold?
You must still report it, but if your total annual income is below PTKP (Rp54 million in 2024), no tax is owed. Always file an SPT regardless.

### Can I deduct costs like gas fees when reporting airdrops?
No. Since airdrops are classified as “other income,” associated transaction fees aren’t deductible. Only capital gains from later sales allow cost deductions.

### Where do businesses report airdrop income?
Corporations declare it as ordinary business income in their corporate tax return (SPT Tahunan Badan) under gross revenue calculations.

## Conclusion
Reporting airdrop income in Indonesia is mandatory but straightforward with careful documentation and timely SPT filings. By valuing tokens accurately at receipt and declaring them as “Other Income,” you avoid penalties and contribute to Indonesia’s evolving crypto tax framework. For complex cases, consult a certified tax advisor or use DJP Online’s resources. Stay compliant—your crypto journey depends on it!