Researcher: Potential Digital Taxes In State Financial Revenues During The COVID-19 Pandemic

JAKARTA - Center for Indonesian Policy Studies (CIPS) researcher Siti Alifah Dina stated that the option to impose digital taxes is a potential as well as a challenge for state revenue, especially during the COVID-19 pandemic.

"The imposition of digital taxes will provide a sense of justice because foreign companies will get the same treatment as domestic companies that have an obligation to pay taxes. This is at the same time to create a level playing field and healthy competition," said Siti Alifah Dina. , July 24th.

However, said Dina, digital tax imposition is not only a problem in Indonesia but also globally.

He reminded that until now, the OECD was still formulating common ground between countries. Unilateral actions such as a Digital Services Tax in France or Indonesia's plans to introduce an Electronic Transaction Tax are complex due to the potential for disruption to international trade and tension from trading partners.

"An in-depth analysis is needed of the negative possibilities that arise from the impact of taxation on Indonesia's business relations with other countries, in addition to the technical preparations for tax collection of these companies," he said.

Value added tax (VAT) on trade transactions through an electronic system (PMSE) is technically regulated in the Minister of Finance Regulation No. 48 of 2020 and its derivatives Director General of Taxes Regulation No. PER-12 / PJ / 2020 which determines the amount of 10 percent to be collected and deposited by companies with an electronic system with certain criteria starting in August.

These criteria are based on a minimum transaction value of IDR 600 million and a minimum amount of traffic or access in Indonesia of 12,000 per year.

"This invites debate, especially from overseas online system companies operating in Indonesia. Moreover, during the implementation of the Large-Scale Social Restrictions (PSBB) policy as it is today. The shift in community activity patterns has changed from conventional to digital, for example from watching in theaters. to be through foreign platforms that provide digital film content, such as Netflix, "he said.

He revealed, data from the Statista agency projected Netflix users in Indonesia to reach 906,800 users, while Netflix's revenue was in the range of Rp.44.43 billion - Rp.153.25 billion per month so that it can be estimated that the potential VAT ranges from Rp.4.44 billion - Rp.15.32 billion per month. .

Dina stated that one of the roles of taxes is as an additional source of state revenue, where this state revenue is also important enough to restore Indonesia's economic performance after COVID-19.

"For example, for the budget for the five MSME protection and recovery schemes launched by the government last April. Only from Netflix alone, Indonesia will get at least Rp. 53.28 billion per year, which can be allocated to priority sectors," he said.

However, he argued that it would be better if the government saw the application of best practice tax collection in other countries, for example Australia, France and Italy, where the business climate was not disrupted and investment continued to flow.

Finance Minister Sri Mulyani Indrawati said that until now there has been no agreement regarding digital taxes in the countries that are members of the G20 because the United States (US) has not agreed.

"Actually, it is hoped that in July there will be an agreement, but with the US to take steps not to accept it, additional efforts are needed," he said at a press conference for the National Budget in Jakarta, Monday, July 20.