The government stated that it would continue to collect income tax (PPh) or electronic transaction tax (PTE) from trading businesses through electronic systems or foreign digital companies operating in Indonesia. "For income tax, this is more on how to settle the sharing of profits," said Finance Minister Sri Mulyani Indrawati at the 2021 State Budget Implementation Strategy Press Conference, Tuesday (12/1/1010).
For information, currently the government has appointed dozens of foreign digital companies as collectors, depositors and value added tax (VAT) reporters. This VAT database will be used by the fiscal authorities to collect Income Tax. The minister said that the government could use Law Number 2 of 2020 as a legal basis to collect income tax or PTE from foreign digital companies operating in Indonesia. "If now we can get the VAT, and then there is also a law on our taxation in the Ciptaker and the Perppu, of course we can estimate estimates that the income he gets from Indonesia can be estimated based on his VAT payment. This could be used as a companion tax for income tax collection, "said Sri Mulyani.
The minister hopes that the digital tax consensus can reach an agreement soon. Because, it will provide certainty in collecting taxes on foreign taxpayers (WP). If this has not been agreed upon, it does not mean that Indonesia cannot collect taxes from foreign parties. "We hope that the agreement can be reached because it provides certainty. However, if this is not achieved, it does not mean that Indonesia cannot collect taxes, "said the minister. Even so, the Minister of Finance has not provided certainty when exactly PPh or PTE can begin to be collected from foreign digital companies operating in Indonesia. "The Indonesian government will continue to collect in accordance with the existing regulations," he concluded.
