More Digital Services Subjected to Tax DG's Added Value Tax Scheme

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Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - The Indonesian directorate general of taxation (Tax DG) on Sunday announced it is set to update its list on over the top (OTT) companies and electronics system trade (PMSE) that are subjected to mandatory added-value tax.

    The DJP said that the list would be larger than the previous announcement, which only listed six corporations. “Wait for the announcement next week,” said DJP spokesperson Hestu Yoga Saksama on Sunday, who remained tight-lipped on the corporations that will be included.

    Earlier this month, the directorate-general of taxation announced that Amazon Web Services Inc., Google Asia Pacific Pte. Ltd., Google Ireland Ltd., Google LLC., Netflix International B.V., and Spotify AB, were subjected to mandatory added-value tax 

    This meant that customers of the aforementioned popular digital service providers would have to pay more to use its services following the tax implementation. 

    The Director-General of Taxation Suryo Utomo previously said that the first six corporations fulfill the government’s criteria to become subjected to the digital product and service tax scheme.

    Read also: Sri Mulyani: Tax of Digital Products Similar to Conventional

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