Two Important Points In Digital Economy Tax

The digital economy tax is one of the aspects discussed in the Draft Law (Bill) on Taxation Provisions and Facilities. According to the Director General of Taxation, Robert Pakpahan, there are two points which will be discussed related to the tax on e-commerce because the government endeavors to provide a level playing field between conventional and electronic commercial transactions.

The first point is the collection and payment of 10% value added tax (VAT) on the imports of intangible goods and services. At the moment, the obligation is fulfilled by domestic consumers by a tax payment slip. According to plan, the government will obligate foreign tax subjects either through their representative in Indonesia or directly to collect, pay, and report VAT.

The second point is the imposition of tax on income related to electronic transactions conducted in Indonesia by foreign tax subjects which do not have any business entity in Indonesia. A permanent establishment is not only based on physical presence, but also based on significant economic presence in the Bill which will revise Laws Number 6 Year 1983, Number 7 Year 1983, and Number 8 Year 1983.

 

 

 

 

 

 

 

Source https://legalcentric.com/content/view/142746

Ministry of Finance Regulation Number 239/PMK.08/2012
Ministry of Finance Regulation Number 239/PMK.08/2012

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