Digital Tax, the New Source of State Revenue

The government will impose a 10 percent value added tax (VAT) for trade products through the electronic commerce (e-Commerce). Member Commission XI of the House of Representatives Heri Gunawan, assesses that this sector has the potential to increase state revenue through taxes. Later, the digital world tax will become a new source that raises the pockets of state revenue.

At present the Government is indeed working hard to increase state revenue from taxes. For this reason, the Minister of Finance has issued Regulation of the Minister of Finance (PMK) Number 48 / PMK.03 / 2020 regarding Procedure For Appointment Of Collector, Collection, And Payment, As Well As Reporting Of Value Added Tax On Utilization Of Intangible Taxable Goods And/Or Taxable Services From Outside A Customs Area Within A Customs Area By Way Of Trade Through Electronic System.

“With this rule, the Government will impose a VAT of 10 percent for e-Commerce products such as music streaming services and Netflix and Spotify films which come into effect July 1, 2020. The aim is to create justice and business equality for domestic and foreign businesses both conventional and digital,” explained Hergun, as he is commonly called, in his interview session via Whatsapp, Saturday (06/06/2020).

This Gerindra Party politician added, the application of digital tax is now increasingly important in line with the continued increase in users and providers of digital services operating in Indonesia. Especially with this pandemic, digital taxes can be a source of new state revenue to cover the state budget deficit. So, this breakthrough source of revenue must be supported.

“I think this effort can certainly increase state revenue. However, business sectors that take economic benefits from operations in our country are ideal and must comply with the Mof Regulation (PMK) requirements. Companies that operate and earn income from Indonesia, want to be drawn-in taxes, the period is considered discrimination? “Said legislator of the West Java electoral district IV.

Hergun’s statement also simultaneously responded to the statement of US President Donald Trump who did not accept US-based companies subject to tax schemes as in PMK. Trump himself claimed to be investigating the tax imposition plan.

“President Trump threaten to investigate the plan to impose a digital company service tax from Uncle Sam’s country, for fear of unfair tax schemes, I think it is very excessive. If Trump can say Make America Great Again, then pay the taxes. How to look for money in Indonesia do not want to pay taxes? ” cried Hergun.

He revealed, the average US company transaction was not carried out domestically. Customers are required to transfer subscription fees to overseas company accounts. This is concrete evidence of Indonesia’s economic leakage. The regulator had not yet had much effort in pursuing real acceptance. The end of the tax regulator can only pursue the domestic taxpayers.

“Indeed, this issue becomes a big issue regardless of whether it is meant to bring up a trade war with the country of origin of the company. What is clear is that for our country, the various tax potentials must be optimized. The government itself through the Omnibus Law is drafting rules for imposing taxes on over the top (OTT) companies operating in Indonesia, such as Netflix, Spotify, and others, “said the Member of the Indonesian Legislative Body (Baleg).

Including Google, Facebook. Amazon, which has not been a Permanent Business Entity (BUT) in Indonesia. Through Omnibus Law, he continued, the definition of BUT will be changed from the original based on the physical presence of his office in Indonesia, to be based on economic activities carried out in Indonesia. So far, these companies have not been touched by tax regulations.

If the rules for imposing taxes for the OTT already exist, without them becoming BUT, the state can obtain revenue from the businesses they run in Indonesia. All that remains is to see the tax scheme that the Government will impose, whether it is fair or not. “As long as the tax is imposed equally and fairly for all businesses, I don’t think they should make an issue either, because Indonesia is a sovereign country,” Hergun concluded.


Sumber :

Procedures for Preliminary Refund of Tax Overpayment
Procedures for Preliminary Refund of Tax Overpayment

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