Digital Tax Revenue Reaches IDR 22.2 T by February 2024

JAKARTA – The Directorate General of Taxes (DGT) recorded revenue from the digital economy business sector reaching IDR 22.179 trillion as of 29 February 2024. The amount of revenue comes from the collection of Value Added Tax (VAT) on Trade Through Electronic Systems (PMSE) amounting to IDR 18.15 trillion, crypto tax amounting to IDR 539.72 billion, fintech tax (P2P lending) amounting to IDR 1.82 trillion, and taxes collected by other parties for transactions in the procurement of goods and/or services through the Procurement Information System (SIPP tax) amounted to Rp1.67 trillion.

In a press release from the DGT on Thursday (14/3), the Director of Extension, Services, and Public Relations of the Directorate General of Taxes, Dwi Astuti revealed, related to revenue from PMSE VAT collection, so far the government has appointed 167 PMSE business actors to become VAT collectors. This number includes four appointments of PMSE VAT collectors and one correction or change in data of PMSE VAT collectors.

The appointments in February 2024 were Tencent Cloud International Pte. Ltd, Blacklane GmbH, Razer Online Pte Ltd, and Social Online Payments Limited. Meanwhile, the corrections in February 2024 are Coda Payments Pte. Ltd. Of all the appointed collectors, 153 PMSE have collected and paid amounting to IDR 18.15 trillion.

"The amount comes from IDR 731.4 billion in 2020 revenue, then in 2021 amounting to IDR 3.90 trillion, IDR 5.51 trillion for 2022, IDR 6.76 trillion in 2023, and IDR 1.24 trillion for 2024 revenue," Dwi Astuti explained.

Meanwhile, the crypto tax that has been collected is IDR 539.72 billion, the revenue comes from IDR 246.45 billion in 2022 revenue, IDR 220.83 billion for 2023 revenue, and IDR 72.44 billion for 2024 revenue. The crypto tax revenue consists of IDR 254.53 billion of Income Tax Article (ITA) 22 revenue on crypto sales transactions at the exchanger and IDR 285.19 billion of Domestic VAT revenue on crypto purchase transactions at the exchanger.

Furthermore, the fintech tax (P2P lending) has also contributed IDR 1.82 trillion in revenue until February 2024. The revenue comes from IDR446.40 billion of revenue in 2022, IDR1.11 trillion of revenue in 2023, and IDR 259.35 billion of revenue in 2024. The fintech tax consists of ITA 23 on loan interest received by Domestic Taxpayers (WPDN) and Permanent Establishments (BUT) amounting to IDR596.1 billion, ITA 26 on loan interest received by Foreign Taxpayers (WPLN) amounting to IDR219.72 billion, and Domestic VAT on periodic payment amounting to IDR999.5 billion.

For tax revenue on other digital economy businesses comes from SIPP tax revenue. Until February 2024, revenue from SIPP tax amounted to IDR1.67 trillion. The revenue comes from IDR 402.38 billion of revenue in 2022, IDR1.1 trillion of revenue in 2023, and IDR151.27 billion of revenue in 2024. SIPP tax revenue consists of income tax of IDR113.85 billion and VAT of IDR1.56 trillion.

Dwi said that to create fairness and a level playing field for both conventional and digital business actors, the government will continue to make appointments for PMSE business actors who sell products and provide digital services from abroad to consumers in Indonesia. In addition, the government will also explore the potential for other digital economy business tax revenues such as crypto tax on crypto asset trading transactions, and fintech tax on loan interest paid by loan recipients. "Then also for SIPP tax on goods and/or services procurement transactions through the Government Procurement Information System," she added. (KEN)