Taxation ยท KBLI 63122

Commercial Digital Platform & Web Portal Tax

Web portals and commercial digital platforms face unique tax obligations: VAT on digital services (electronic system trading) at 11%, withholding tax on payments to foreign providers, and local VAT for premium services. The combination of revenue from various sources (subscriptions, commissions, advertising) with a national user base makes tax calculations complex. Arunika Consulting helps digital platforms fulfill tax obligations accurately with strategies that legally minimize tax burdens.

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What usually goes wrong

  • Foreign Digital Service VAT

    Procurement of cloud infrastructure or software from foreign vendors triggers electronic system trading VAT obligations that need to be collected and remitted.

  • Royalty Tax Withholding

    Payments for royalties, technology licenses, or services to foreign parties require 20% Article 26 income tax withholding.

  • Subscription Revenue VAT

    Every subscription or in-app purchase transaction must have 11% VAT collected even though payments are made digitally.

  • Group Entity Transfer Pricing

    Platforms with entities in multiple countries must ensure correct transfer pricing to avoid sanctions.

What we do

  1. 01

    Electronic System Trading VAT Compliance

    Setup of VAT collection system for foreign digital services and local platform revenue.

    • Electronic system trading VAT compliance
    • Sanctions avoided
    • Automated process
  2. 02

    Foreign Income Tax Withholding

    Calculation and reporting of income tax withholding on payments to foreign vendors.

    • Optimal tax credits
    • Double taxation avoided
    • Timely reporting
  3. 03

    Transfer Pricing Documentation

    Preparation of transfer pricing documentation for intra-group transactions.

    • Reduced audit risk
    • Global compliance
    • Tax efficiency

Related regulations

  • PMK 60/2022

    VAT Collection for Electronic System Trading

    VAT obligations on digital services consumed domestically by electronic system trading

  • PP 55/2022

    SME Final Income Tax

    0.5% final income tax rate for digital platform SMEs with turnover under IDR 4.8 Billion

  • PMK 39/2022

    Article 26 Income Tax Withholding

    Income tax withholding on royalties and technology services from foreign providers

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

Must digital platforms collect VAT on every transaction?

Yes, as a designated electronic system trading or VAT taxable entrepreneur, platforms must collect 11% VAT on every transaction occurring on the platform.

How to calculate income tax on payments to foreign cloud vendors?

Payments to foreign vendors are subject to 20% Article 26 income tax on gross amounts, unless there is a Double Taxation Avoidance Agreement (DTAA) reducing the rate.

Are subscriptions from foreign users subject to VAT?

No, VAT is only charged on consumption occurring domestically. Foreign users are not subject to VAT.

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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