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The Indonesian government has collected Rp 13.29 trillion ($886.4 million) in digital taxes from 135 technology companies, both domestic and foreign, since 2020.
Digital tax revenue has been increasing steadily, reaching Rp 731.4 billion in 2020, Rp 3.9 trillion in 2021, Rp 5.51 trillion in 2022, and Rp 3.15 trillion in the first half of 2023, according to Tax Directorate spokeswoman Dwi Astuti.
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The government has added an 11 percent tax on digital products sold by tech companies to Indonesian consumers. To comply, these companies must provide commercial invoices, billing statements, and order receipts as proof of their sales.
The digital tax applies to tech companies with annual transactions valued at Rp 600 million or more. Notable companies that fall under this tax requirement include Amazon, Google, Netflix, Spotify, Tokopedia, Bukalapak, and Microsoft.
Five new companies have been added to the list of companies that must pay the digital tax. The newly added companies are Corel Corporation, Foxit Software Incorporated, Sendinblue SAS, Twitch Interactive Inc., and NCS Pearson Inc.
Indonesia’s digital tax initiative aims to collect revenue from technology companies’ digital services and contribute to the country’s tax revenue.
