Taxation ยท KBLI 62011

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.

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What usually goes wrong

  • 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.

What we do

  1. 01

    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
    • Lower penalty risk
    • Protected cash flow
  2. 02

    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
  3. 03

    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.

    • Tax facilities reviewed
    • Smooth transition when scaling
    • Simple reporting

Related 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

If the tax office starts asking questions

The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.

How we handle tax disputes

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.

Who handles my tax work?

Your tax work is handled by Arunika's tax consultants. We confirm the scope, deadlines and price before work starts.

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.

What does tax planning cover?

We review your structure, transactions and available incentives so tax is calculated under the rules, without crossing into tax evasion. The outcome depends on your facts, so we do not promise a savings figure.

Related Industries

Tell us about your business

Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.

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