What Taxes Are Deducted from My Staking Rewards?
Two taxes are deducted from your gross staking rewards before payout: TDS (Tax Deducted at Source) at 5% and VAT (Value Added Tax / PPN) at 0.11%. Both are deducted from the gross daily reward during the Accrual calculation. The net reward distributed every Tuesday is already after these deductions.
| Tax | Rate | Applied to |
|---|---|---|
| TDS (Pajak Penghasilan Final) | 5% | Gross daily reward |
| VAT / PPN | 0.11% | Gross daily reward |
| Net reward | = Gross − TDS − VAT | |
Example (ETH, Regular, APR 1.19%, 1 ETH staked):
- Gross daily reward = 0.0000326 ETH
- TDS (5%) = 0.00000163 ETH
- VAT (0.11%) = 0.0000000359 ETH
- Net daily accrual ≈ 0.0000309 ETH
Related questions:
Q: Do I need to report staking rewards on my personal tax return?
Pluang deducts and remits TDS and VAT on your behalf. Whether additional reporting is required depends on your personal tax situation. Consult a tax professional for guidance.
Q: Is the APY shown in the app before or after tax?
The APY shown in the app is the gross rate (before tax). The actual take-home yield after TDS 5% + VAT 0.11% will be slightly lower.
Q: Are the tax rates on staking rewards the same for all users?
Yes. TDS 5% and VAT 0.11% apply to all users regardless of account type.