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Indonesia also to tax ads, trading in social media

Jakarta Post - July 24, 2019

Jakarta – The Taxation Directorate General is now preparing a mechanism to collect taxes from all activities in the digital economy, not only trading in marketplaces, but also all activities in social media and other platforms, including financial technology (fintech).

Communication and information technology transformation director Iwan Djuniardi said the directorate was now working on data analysis of the digital economy, so that the tax potential in digital economy activities could be mapped easily.

He said that initially, data on sales and transactions through the digital economy would be available at the Taxation Service Office, Communication and Information Technology Directorate and Taxation Information Technology Directorate.

The tax office's effort to improve tax administrative data started in 2012.

Iwan said the two new directorates would work together to map the tax potential in a more efficient and effective work flow.

"The point is that the government wants to discipline [taxpayers], without new tax regulation," he said as quoted by kontan.co.id

Meanwhile, Indonesian E-Commerce Association (idEA) head Ignatius Untung said the biggest obstacle to implement the mission was to tax the digital economy through social media, including advertisement and retail.

It will be hard to collect data of people selling their goods through social media as the sellers are people from outside of the social media company, he added. (gis/bbn)

Source: https://www.thejakartapost.com/news/2019/07/24/indonesia-also-to-tax-ads-trading-in-social-media.html