Digital Tax Revenue Reached IDR 7.1 Trillion, with a Total Deposit of IDR 2.5 Trillion So Far This Year!
Delivered by the Coordinating Minister for the Economy, Airlangga Hartarto, in Nusa Dua, Bali, President Joko Widodo gave his guidance regarding the digital economy at the 2022 Indonesian Digital Financial Economy Festival. The festival is part of a series of events planned for the G20 meeting in Bali this November.
The digital economy is one of the topics to be discussed at the G20 meeting. According to President Widodo, the G20 meeting, presided by Indonesia, is an opportunity to strengthen policies that will create the country’s foundation for even more advancement.
"Synergy encourages stability in economic recovery, including promoting health and institutions so that efficiency in productivity can be achieved. The G20 presidency, with its theme, Recover Stronger, Recover Together, is creating momentum for strengthening the economy, especially the digitalization of financial services, inter-state payments, and excise regulations between inter-country import duties," said President Widodo.
The Number of Digital Tax Collectors Continues to Increase
The Ministry of Finance noted that the total digital tax collected up to the end of June 2022 (Semester I) reached IDR 7.1 trillion. This amount comes from a Value Added Tax (VAT) on the use of intangible goods and services within Indonesia for trading companies from outside Indonesia that use the electronic system (PMSE).
The more tax that is collected from companies, the higher the potential for digital tax revenue to increase. The Director of Counseling, Services, and Public Relations of the Directorate General of Taxes at the Ministry of Finance, Neilmaldrin Noor, explained that as of June 30th, 2022, 97 PMSE operators collected digital taxes on transactions on their related platform.
"Following PMK-60/PMK.03/2022, PMSE businesses who have been appointed as collectors are required to collect VAT at a rate of 11 percent on foreign products sold in Indonesia," said Neilmaldrin Noor.
He also said there are several criteria for PMSE businesses to become digital tax collectors. Among them the value of transactions with Indonesian buyers must exceed IDR 600 million a year, or IDR 50 million a month, and/or the amount of transaction traffic in Indonesia must exceed 12,000 a year or a thousand per month. This is to be followed by proof of billing in the form of commercial invoices, bills, order receipts, or other similar documents stating that VAT has been collected and paid.
**By: Stefani W. Anggraeni — Marketing Communications & Social Media Specialist