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Amazon, Google, and Other Tech Giants Contribute to Indonesia’s Rp 6.76 Trillion Digital Tax Revenue

  • The Finance Ministry of Indonesia has collected Rp 6.76 trillion ($435.5 million) in digital tax in 2023.
  • This is a 22.69 percent increase compared to the previous year.
  • Since its inception in 2020, the government has collected a total of Rp 16.9 trillion in digital tax.
  • There are currently 163 digital taxpayers in Indonesia, including major companies like Amazon, Google, Facebook, Netflix, Apple, TikTok, Walt Disney, Microsoft, and Valve.
  • Digital services companies are required to pay an 11% VAT rate on foreign digital products sold in Indonesia.
  • The government will continue to collect taxes from digital entities to maintain fairness and equality with conventional businesses.
  • Businesses are subject to digital tax if their transactions with Indonesian consumers exceed Rp 600 million annually or Rp 50 million monthly, and if the number of transactions in Indonesia exceeds 12,000 annually or 1,000 monthly.

Source: jakartaglobe.id

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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