Potential Tax Revenue of ESO Registration Obligation

JAKARTA. The Directorate General of Taxes (DGT) considers that there is an additional opportunity for state revenue from the provisions requiring Electronic System Operator (ESO) companies to be registered in the government system.

Quoting Kontan.co.id, the provisions regarding ESO issued by the Ministry of Communication and Information (Kominfo) comply very closely with tax provisions. In particular, regarding the collection of Value Added Tax on Trade Through Electronic System (PMSE).

However, not all ESO companies that must be registered are obliged to collect PMSE VAT. This is because the ESO terminology applied by Kominfo and PMSE which refers to different tax provisions.

PSE companies are part of PMSE companies. This means that not all PSEs are PMSEs. Because to be determined as a PMSE that is obliged to collect VAT, it must meet several criteria.

ESO companies are part of PMSE companies. This means that not all ESOs are PMSEs. Because to be determined as a PMSE that is obliged to collect VAT, it must meet several criteria.

Some of the criteria that must be met include having a minimum transaction value of IDR 600 million a year or IDR 50 million a month. Or at least, digital companies have been accessed by more than 12,000 visitors in one year or 1,000 visitors in one month.

Meanwhile, Executive Director of MUC Tax Research Institute, Wahyu Nuryanto, said that the mandatory registration of ESO companies can make it easier for DGT to sort out companies that meet the criteria for collecting PMSE VAT.

Because, one of the obligations that must be fulfilled by ESO companies when registering is to submit a number of data and information, including the number of customers and the income received from the Indonesian people.

Read: Criteria for VAT-Collecting Digital Companies Determined

Not only that, the data can also be used by the DGT to determine the potential Income Tax (PPh) from multinational companies that use digital platforms to reach customers in Indonesia.

This potential can be used to implement the provisions of Pillar I in the international tax consensus currently being discussed by the OECD and the G-20 regarding the taxing rights of multinational companies.