Digital Economy Tax Reaches IDR 29.97 Trillion As Of October 2024

Director of Counseling, Services and Public Relations Dwi Astuti. (Photo: Doc. ANTARA)

The Directorate General of Taxes (DGT) of the Ministry of Finance (Kemenkeu) noted that revenue from the digital economy business sector was IDR 29.97 trillion until October 31, 2024.

This amount comes from the collection of Value Added Tax (VAT) for Trade Through Electronic Systems (PMSE) amounting to Rp. 23.77 trillion, crypto tax of Rp. 942.88 billion, fintech tax (P2P lending) of Rp. 2.71 trillion, and taxes collected by other parties for goods and/or services procurement transactions through the Government Procurement Information System (Pak SIPP) amounting to Rp. 2.55 trillion.

Meanwhile, until October 2024, the government has appointed 193 PMSE business actors to become Value Added Tax collectors (VAT).

That number includes fifteen PMSE VAT collection appointments and three PMSE VAT data corrections or changes in October.

Director of Counseling, Services and Public Relations Dwi Astuti said, of the total collections that had been appointed, 170 PMSE had collected and deposited PMSE VAT amounting to Rp23.77 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 6.86 trillion in deposits in 2024," he said in his statement, Wednesday, November 13.

Crypto tax revenues have been collected amounting to Rp942.88 billion until October 2024. The receipts come from Rp246.45 billion in revenues in 2022, Rp220.83 billion in revenues in 2023, and Rp475.6 billion in 2024.

The crypto tax revenue consists of Rp441.57 billion in PPh 22 revenues for crypto sales transactions on exchangers and Rp501.31 billion in VAT DN receipts for crypto purchase transactions on exchangers.

Meanwhile, fintech taxes (P2P lending) have also contributed tax revenues of Rp2.71 trillion until October 2024. Revenue from fintech taxes comes from Rp446.39 billion in revenues in 2022, Rp1.11 trillion in revenues in 2023, and Rp1.15 trillion in revenues in 2024.

Meanwhile, the fintech tax consists of PPh 23 on loan interest received by WPDN and BUT amounting to Rp789.49 billion, PPh 26 for loan interest received by WPLN amounting to Rp488.86 billion, and VAT DN for period deposits of Rp1.43 trillion.

Dwi conveyed that tax revenues for other digital economy businesses came from SIPP tax revenues. Until October 2024, receipts from the SIPP tax amounted to IDR 2.55 trillion.

According to Dwi, the receipt from the SIPP tax came from Rp402.38 billion in revenue in 2022, amounting to Rp1.12 trillion in revenue in 2023, and Rp1.03 trillion in revenue in 2024. SIPP tax revenue consists of PPh of Rp172.68 billion and VAT of Rp2.38 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.