March 2024, Digital Economy Business Tax Reaches IDR 23.04 Trillion

JAKARTA - The Directorate General of Taxes (DJP) noted that until March 31, 2024, the government recorded revenue from the digital economy business sector of IDR 23.04 trillion.

Director of Counseling, Services and Public Relations Dwi Astuti said that the amount came from the collection of Value Added Tax (VAT) for Trade Through Electronic Systems (PMSE) of Rp. 18.74 trillion, crypto tax of Rp. 580.2 billion, and fintech tax (P2P lending) of Rp. 1.95 trillion.

Furthermore, taxes collected by other parties on goods and/or services procurement transactions through the Government Procurement Information System (SIPP tax) amounted to Rp1.77 trillion.

Meanwhile, until March 2024, the government has appointed 167 PMSE business actors to become Value Added Tax collectors (VAT).

This amount includes two corrections or changes to PMSE VAT collection data. The corrections in March 2024 are Vonage Business Inc. and Twitch Interactive Singapore Private Limited. Of the total collections that have been appointed, 154 PMSE have collected and deposited PMSE VAT amounting to Rp18.74 trillion.

"This amount comes from IDR 731.4 billion in deposits in 2020, IDR 3.90 trillion in deposits in 2021, IDR 5.51 trillion in deposits in 2022, IDR 6.76 trillion in deposits in 2023, and IDR 1.84 trillion in deposits in 2024," he said in his official statement, quoted on Sunday, April 7.

Dwi said that crypto tax revenues had been collected amounting to Rp580.20 billion until March 2024. The receipts came from Rp246.45 billion in revenues in 2022, Rp220.83 billion in revenues in 2023, and Rp112.93 billion in 2024.

The crypto tax revenue consists of Rp273.69 billion in PPh 22 receipts for crypto sales transactions on exchangers and Rp306.52 billion in VAT DN receipts for crypto purchase transactions on exchangers.

Meanwhile, fintech taxes (P2P lending) have also contributed tax revenues of Rp1.95 trillion until March 2024. Revenue from fintech taxes comes from Rp446.40 billion in revenues in 2022, Rp1.11 trillion in revenues in 2023, and Rp394.93 billion in revenues in 2024.

Meanwhile, the fintech tax consists of PPh 23 on loan interest received by WPDN and BUT amounting to Rp677.78 billion, PPh 26 for loan interest received by WPLN amounting to Rp231.43 billion, and VAT DN for period deposits of Rp1.04 trillion.

Furthermore, tax revenues for other digital economy businesses come from SIPP tax revenues. Until March 2024, receipts from the SIPP tax amounted to IDR 1.77 trillion.

According to Dwi, the receipt from the SIPP tax came from Rp402.38 billion in revenue in 2022, amounting to Rp1.1 trillion in revenue in 2023, and Rp252.16 billion in revenue in 2024. SIPP tax revenue consists of PPh of Rp119.88 billion and VAT of Rp1.65 trillion.

"In order to create justice and equal business (level playing field) for business actors, both conventional and digital, the government will continue to appoint PMSE business actors who sell products and provide digital services from abroad to consumers in Indonesia," said Dwi.

Dwi also added that the government will explore the potential for other digital economy business tax revenues such as crypto taxes on crypto asset trading transactions, fintech taxes on loan interest paid by loan recipients, and SIPP taxes on goods and/or services procurement transactions through the Government Procurement Information System.