Indonesia Secures Rp 17.46 Tln in Digital Tax, Still Far from Enough

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Summary

The Directorate General of Taxation under the Finance Ministry proudly asserts its successful collection of value-added tax (VAT) from businesses operating in the Electronic Trading System (PMSE), such as Google, Facebook, and Netflix. Dwi Astuti, the spokesperson for the Directorate General of Taxation, disclosed that 153 businesses operating in the PMSE have contributed and remitted a total of Rp 17.46 trillion in VAT from 2020 up to the present.

"This amount comprises Rp 731.4 billion deposited in 2020, Rp 3.90 trillion in 2021, Rp 5.51 trillion in 2022, Rp 6.76 trillion in 2023, and Rp 551.7 billion in early 2024," Dwi said on Feb 20. The government expanded the list of businesses operating in the PMSE in January 2024, including Sandbox Interactive GmbH and Zwift Inc. In addition to appointing new businesses operating in the PMSE, the government has also rectified data in the appointment decree for Softlayer Dutch Holdings B.V. and revoked the VAT collector status for Unity Technologies ApS and Tencent Mobility Limited.

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