The Directorate General of Taxes (DGT) will face a big challenge in 2019. The challenge is the development of a growing digital economy.
Especially since the government aspires to become the largest digital power in Southeast Asia with a potential of 130 billion US dollars by 2020.
“It needs the right mechanism and tax treatment for entrepreneur in digital economic sector,” Executive Director of the Center of Indonesian Tax Analysis (CITA) Yustinus Prastowo, Jakarta, Monday (31/12/2018).
“We have to keep in mind, the business process for startups companies are different from conventional business,” he continued.
According to Yustinus, both the Government and digital economic entrepreneur must meet to plan tax policy for the digital economy sector in the future.
Prior, Minister of Finance Sri Mulyani had realized the significant risk on the development of digital business. Profit shifting or transfer of income to other countries are some of the examples of these risks.
However, Sri Mulyani emphasized that Indonesia and more than 100 countries already have an agreement to exchange tax data automatically, also known as Automatic Exchange of Information. (AEoI).
She also emphasized that, even though it is now a digital era, the government has never prioritized digital companies.
This was conveyed by Sri to refute the presumption of conventional companies who feel that the government neglects them.