Ministry Of Finance Pockets Digital Economy Tax Reaches IDR 24.12 Trillion

Illustration. (Photo: Doc. Antara)

The Directorate General of Taxes (DGT) of the Ministry of Finance noted that tax revenues from the digital economy business sector reached IDR 24.12 trillion until April 30, 2024.

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. 19.5 trillion, crypto tax of Rp. 689.84 billion, and fintech tax (P2P lending) of Rp. 2.03 trillion,

Furthermore, it comes from taxes collected by other parties for goods and/or services procurement transactions through the Government Procurement Information System (SIPP tax) amounting to Rp1.91 trillion.

Meanwhile, until April 2024, the government has appointed 172 PMSE business actors to become Value Added Tax collectors (VAT). This number includes six new appointments, one correction and one revocation of PMSE VAT collection data.

The new appointments in April 2024 are Tradeshift Holdings, Inc., Ahrefs Pte. Ltd., Amazon EU S.mencar r.l., Evernote Corporation, Lemon Squeezy LLC, and Posit Software, PBC. The corrections are Alexa Internet and the revocation is Aleepic Games International S.a r.l., Bertrange, Root Branch.

Of the total polling that has been appointed, 154 PMSE have collected and deposited PMSE VAT amounting to IDR 19.5 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 2.6 trillion in deposits in 2024," he said in his statement, Friday, May 17.

Crypto tax revenues have been collected amounting to IDR 689.84 billion as of April 2024. The receipts come from IDR 246.45 billion in revenues in 2022, IDR 220.83 billion in revenues in 2023, and IDR 222.56 billion in 2024.

The crypto tax revenue consists of Rp325.11 billion in PPh 22 receipts for crypto sales transactions on exchangers and Rp364.73 billion in VAT DN receipts for crypto purchase transactions on exchangers.

Fintech tax (P2P lending) has also contributed tax revenues of Rp2.02 trillion until April 2024. Revenue from fintech taxes comes from Rp446.39 billion in revenues in 2022, Rp1.11 trillion in revenues in 2023, and Rp470.18 billion in revenues in 2024.

The fintech tax consists of PPh 23 on loan interest received by WPDN and BUT amounting to Rp696.78 billion, PPh 26 for interest on loans received by WPLN amounting to Rp244.4 billion, and VAT DN for period deposits of Rp1.08 trillion.

The tax revenue for other digital economy businesses comes from the SIPP tax revenue. Until April 2024, the receipt from the SIPP tax was IDR 1.91 trillion.

Meanwhile, the receipts from the SIPP tax came from Rp402.38 billion in revenues in 2022, amounting to Rp1.11 trillion in revenues in 2023, and Rp388.84 billion in revenues in 2024. SIPP tax revenue consists of PPh of Rp128.22 billion and VAT of Rp1.78 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.