DGT Reveals Marketplace Appointment To Close Shadow Economy Gap

JAKARTA - Director of Counseling, Services, and Public Relations of the Directorate General of Taxes (Directorate General of Taxes) Rosmauli conveyed the purpose of appointing a marketplace as an Income Tax Collection (PPh) Article 22 on goods sales transactions by merchants selling through Electronic Systems (PMSE) to strengthen supervision and close the shadow economy gap.

Rosmauli said that this provision also aims to strengthen supervision of digital economic activity and close the shadow economy gap, especially from online traders who have not carried out tax obligations either due to lack of understanding or reluctance to deal with administrative processes that are considered complicated.

"By involving the marketplace as a polling party, it is hoped that the collection of PPh Article 22, can encourage proportional compliance, and ensure that tax contributions reflect real business capacity," he said in his statement, Thursday, June 26.

According to him, the provisions are still in the finalization stage where currently, regulations regarding the appointment of a marketplace as a collection of PPh Article 22 are still in the process of being finalized internally by the government.

"We understand the importance of clarity for business actors and the community. Therefore, if this rule has been officially enacted, we will convey it openly, completely, and transparently to the public," he explained.

Rosmauli said that the preparation of this provision had gone through a MEANingful participation process, namely studies and discussions with stakeholders, including e-commerce industry players and related ministries/agencies.

According to him, the response to this provision plan has so far shown support for the government's goal of encouraging fairer and more efficient tax management in accordance with the development of information technology.

Rosmauli said that this policy did not change the basic principles, but instead provided convenience for traders in fulfilling tax obligations, because the tax payment process was carried out through a simpler and more integrated collection system with the platform where they sell.

He added that domestic private traders who make up to IDR 500 million per year are still not subject to PPh in this scheme, in accordance with applicable regulations.

Rosmauli said the main purpose of this provision was to create justice and convenience because this mechanism was designed to provide convenience in administration, improve compliance, and ensure equal tax treatment between business actors, without adding to the burden or creating new types of taxes.