Tax Consultant Specializing in Indonesian Game Studios
Navigate game industry taxation: digital game VAT, SME income tax for indie studios, royalties, and international transaction taxes.
Important Note
This industry needs careful tax compliance monitoring. Make sure all obligations are fulfilled on time.
Tax Rate
11%
PPN
Risk Level
Medium
Typical Turnover
IDR 500 Million - 50 Billion per year
Tax Challenges
Digital Game VAT
Digital game sales (app store, Steam, console store) are subject to VAT. Global platforms like Steam and Apple have started collecting VAT, but reconciliation is still needed.
Royalties from International Publishers
Studios receiving royalty payments from foreign publishers must understand source country withholding tax and foreign tax credits.
SME vs Regular Income Tax
Small game studios need to decide whether to use 0.5% SME final income tax or regular income tax rates based on growth projections.
In-Game Purchase & Microtransaction
Revenue from in-game purchases, loot boxes, battle passes, and skins has tax treatments that must be properly understood.
Our Tax Solutions
Digital Game VAT Compliance
Setup of VAT compliance for digital game sales: tax invoices, monthly VAT return reporting, and reconciliation with platform data.
- Correctly recorded VAT
- No sanctions
- Protected cash flow
Royalty & Cross-Border Tax Planning
Analysis of international royalty agreements to minimize double taxation and ensure foreign tax credit recording.
- Minimal double taxation
- Increased net royalties
- Cross-country compliance
SME Income Tax Optimization
Evaluation of when to use 0.5% SME final income tax vs 22% corporate income tax based on studio growth projections.
- Significant tax savings
- Smooth transition when scaling
- Simple reporting
Related Tax Regulations
PMK 60/2022
VAT on Digital Game Sales
VAT collection on digital game sales through domestic and foreign platforms
PP 55/2022
SME Final Income Tax
0.5% final income tax rate for SMEs with turnover under IDR 4.8 Billion
UU HPP
Harmonization of Tax Regulations
Digital service tax VAT provisions for games and digital content
Need a Tax Consultant for Video Game Development Tax?
Consult your business tax strategy with our certified tax consultants. Free initial consultation.
Free Consultation via WhatsAppVideo Game Development Tax Consulting Services Across Indonesia
We support clients in major Indonesian cities. Find a location-specific service page for your area.
Bali
Banten
Daerah Istimewa Yogyakarta
Jawa Tengah
Jawa Timur
Kalimantan Barat
Kalimantan Selatan
Kalimantan Timur
Kepulauan Riau
Riau
Sulawesi Selatan
Sulawesi Tengah
Sulawesi Tenggara
Sulawesi Utara
Sumatera Utara
Sumatra Selatan
Frequently Asked Questions
Are Steam game sales subject to Indonesian VAT?
Yes. Starting in 2023, platforms like Steam, Google Play, and Apple App Store have been collecting VAT on digital sales in Indonesia. Developers do not need to register specifically as VAT taxable entrepreneurs for this, but must ensure sales data is correctly recorded for reporting.
How are royalties from foreign publishers taxed?
Royalties from foreign publishers are subject to 20% Article 26 income tax (or bilateral tax treaty rate if applicable). Studios can credit tax withheld at source against Indonesian corporate income tax to avoid double taxation.
When should game studios form a PT (corporation)?
Considerations for forming a PT arise when: (1) turnover approaches IDR 4.8 Billion (SME threshold), (2) working with publishers requiring official corporate NPWP invoices, or (3) wanting to separate personal and game business assets. We help analyze the optimal breakeven point.
Is Arunika Consulting officially licensed as a tax consultant?
Yes. We are registered tax consultants and support clients with compliant, professional tax advisory and representation.
What should I do if I receive an SP2DK letter or tax audit notice?
Contact us early. We help analyze the risk, prepare supporting documents, draft the response, and assist discussions with the tax office.
How much tax saving can tax planning deliver?
It depends on your structure and transactions. We identify legal efficiencies, incentives, and reporting improvements without crossing into tax evasion.
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