Indonesia's Digital Tax Revenue Realization up to September 2024

The Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu) reported that Indonesia's tax revenue from the digital economy sector reached Rp28.91 trillion until September 2024.

The largest portion of this revenue came from Value Added Tax (VAT) on Electronic System Transactions (PMSE), amounting to Rp23.04 trillion.

Until September 2024, the government had appointed 178 PMSE businesses as VAT collectors. This includes two newly appointed PMSE VAT collectors: Optimise Media (sea) Pte Ltd and DFENG LIMITED.

Next, digital tax revenue from peer-to-peer (P2P) lending fintech amounted to Rp2.57 trillion.

Specifically, this fintech tax comprised: Income Tax Article 23 on loan interest received by domestic taxpayers (WPDN) and permanent establishments (BUT) totaling Rp776.55 billion; Income Tax Article 26 on loan interest received by foreign taxpayers (WLPN) totaling Rp428 billion; and Domestic VAT on periodic payments totaling Rp1.37 trillion.

Furthermore, taxes collected by third parties on goods/services procurement transactions through the Government Procurement Information System (SIPP) amounted to Rp2.38 trillion. This consists of Income Tax totaling Rp162.2 billion and VAT totaling Rp2.22 trillion.

Finally, tax revenue from cryptocurrencies amounted to Rp914.2 billion. This comprises Income Tax Article 22 revenue of Rp428.4 billion and Domestic VAT revenue on cryptocurrency purchases at exchanges totaling Rp485.8 billion.

"The government will continue to appoint PMSE businesses that sell digital products or provide digital services from abroad to consumers in Indonesia," said Dwi Astuti, Director of Dissemination, Services, and Public Relations of the DJP Kemenkeu, as reported by Katadata on Monday, October 7, 2024.