Jakarta. The Finance Ministry's Directorate General of Taxation (DJP) collected Rp 551.7 billion ($35.23 million) in digital tax from technology companies and services operating in Indonesia in January.

Dwi Astuti, the Director of Education, Services, and Public Relations, said the ministry has collected Rp 17.46 trillion in value-added tax (VAT) and income tax obtained from 163 major tech companies like Amazon, Google, Meta, Netflix, Apple, and others since the introduction of the digital tax in 2020.

This amount is derived from Rp 731.4 billion collected in 2020, Rp 3.9 trillion collected in 2021, Rp 5.51 trillion collected in 2022, Rp 6.76 trillion in 2023, and Rp 551.7 billion in January 2024

Foreign tech companies operating in Indonesia must apply an 11 percent VAT rate to the sale of their foreign digital products in the country. Furthermore, these companies are required to generate evidence of VAT collection, such as a commercial invoice, billing, order receipt, or other relevant documents indicating the VAT collection and confirming payment.

Businesses subject to digital tax must meet certain criteria, including a transaction value with Indonesian consumers exceeding Rp 600 million per year or Rp 50 million per month. Additionally, the number of transactions in Indonesia exceeds 12,000 annually or 1,000 monthly.

The latest additions to the digital taxpayers' list are Sandbox Interactive GmbH and Zwift, Inc. Additionally, the government has removed Unity Technologies ApS and Tencent Mobility Limited from the list.

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