Business · Economy · 2 hrs ago

Indonesia Plans Digital Tax Collection Through Banks and Online Platforms

Indonesia Plans Digital Tax Collection Through Banks and Online Platforms

Kadin adviser Hashim Djojohadikusumo says digital tax collection will start on 9 November in Indonesia.

Banks, fintech companies and platforms including Shopee, Lazada and GoTo are expected to collect and pay taxes to the government.

The government’s stated aim is to expand tax collection and strengthen public finances.

Hashim says state revenue is about 12% of Indonesia’s gross domestic product, compared with 18% in Cambodia and 20% in India.

He estimates that raising Indonesia’s revenue ratio to Cambodia’s level could bring in up to Rp1,500 trillion more each year.

A separate income-tax collection for marketplace sellers began on 1 October, with four marketplaces appointed to collect it.

Indonesia’s tax chief says that marketplace policy is not a new type of tax and does not change the value-added tax rate.

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What people are saying

Hashim DjojohadikusumoKadin Indonesia advisory board chair
digital taxation, this will soon be implemented, on November 9, all state banks, private banks, and all fintech companies, including Shopee, Lazada, GOTO, and others, must collect and remit taxes that have not been collected
via CNBC Indonesia
State revenue is 12% of GDP as recorded. We compare with our neighboring countries and distant countries. We are at 12%, our neighbor Cambodia is at 18%, our neighbor India is at 20%. Distant countries in Africa are at 16%; all these countries have state revenue far above ours
via CNBC Indonesia
Bimo WijayantoDirector General of Taxes
Regarding Article 22 income tax for marketplaces, it has begun to be implemented on October 1; we appointed four marketplaces: Blibli, Tokopedia, Lazada, and Shopee
via CNBC Indonesia
this is actually not a new type of tax and does not change the value-added tax rate
via CNBC Indonesia