Jakarta. The Indonesian government has collected Rp 13.29 trillion ($886.4 million) in digital taxes from 135 domestic and foreign technology companies since 2020, according to a statement from the Tax Directorate on Tuesday.

The digital tax revenue has seen a steady increase over the years, with Rp 731.4 billion in 2020, Rp 3.9 trillion in 2021, Rp 5.51 trillion in 2022, and Rp 3.15 trillion in the first half of 2023, as reported by Tax Directorate spokeswoman Dwi Astuti.

The government has implemented an 11 percent value-added tax on the sales of "digital products" by technology companies to Indonesian consumers. To ensure compliance, these tech companies are required to provide supporting documents such as commercial invoices, billing statements, and order receipts as proof of their transactions.

The digital tax applies to tech companies with annual transactions valued at Rp 600 million or more. Notable companies that fall under this tax requirement include Amazon, Google, Netflix, Spotify, Tokopedia, Bukalapak, and Microsoft.

Recently, five new companies were added to the list of those subject to the digital tax. These companies include Corel Corporation, Foxit Software Incorporated, Sendinblue SAS, Twitch Interactive Inc., and NCS Pearson Inc.

The digital tax initiative aims to fairly collect revenue from digital services provided by technology companies in Indonesia and contribute to the country's tax revenue.

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