Government Absorbs IDR 25.88 Trillion From Digital Economy Tax As Of June 30, 2024

JAKARTA - The government absorbs funds worth IDR 25.88 trillion from taxes on digital economy businesses as of June 30, 2024.

"As of June 30, 2024, the Government recorded revenue from the digital economy business sector of Rp. 25.88 trillion," said Dwi Astuti, Director of Counseling, Services and Community Affairs in Jakarta, quoted from Antara, Friday, July 19.

This amount comes from the collection of Value Added Tax (VAT) for Trade Through Electronic Systems (PMSE) amounting to Rp20.8 trillion, crypto tax of Rp798.84 billion, fintech tax (P2P lending) of Rp2.19 trillion, and taxes collected by other parties for goods and/or services procurement transactions through the Government Procurement Information System (Pak SIPP) amounting to Rp2.09 trillion.

Regarding PMSE VAT, the Government has appointed 172 business actors in total until June 2024. Of that number, 159 PMSE of them have deposited VAT worth IDR 20.8 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 3.89 trillion in deposits in 2024.

The government will continue to appoint PMSE entrepreneurs who sell products and provide digital services from abroad to consumers in Indonesia. It aims to create justice and equal business (level playing field) for both conventional and digital business actors.

Meanwhile, crypto tax revenues have been collected in the amount of Rp798.84 billion as of June 2024. The receipts come from Rp246.45 billion in revenues in 2022, Rp220.83 billion in revenues in 2023, and Rp331.56 billion in 2024.

The crypto tax revenue consists of Rp376.13 billion in PPh 22 receipts for crypto sales transactions on exchangers and Rp422.71 billion in VAT DN receipts for crypto purchase transactions on exchangers.

Fintech tax (P2P lending) has also contributed tax revenues of Rp2.19 trillion until June 2024. Revenue from fintech taxes comes from Rp446.39 billion in revenues in 2022, Rp1.11 trillion in revenues in 2023, and Rp635.81 billion in revenues in 2024.

The fintech tax consists of PPh 23 on loan interest received by domestic taxpayers (WPDN) and BUT amounting to Rp732.34 billion, PPh 26 for interest on loans received by foreign taxpayers (WPLN) amounting to Rp270.98 billion, and VAT DN for mass deposits of Rp1.19 trillion.

Tax revenues for other digital economy businesses came from SIPP tax revenues. As of June 2024, revenue from the SIPP tax amounted to Rp2.09 trillion. The receipt from the SIPP tax came from Rp402.38 billion in revenues in 2022, amounting to Rp1.12 trillion in revenues in 2023, and Rp572.17 billion in revenues in 2024. SIPP tax revenue consists of income tax of Rp141.23 billion and VAT of Rp1.95 trillion.

Dwi 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.