Tax & Business

The Indonesian government set a tax revenue target of Rp1786trn ($125.9bn) for the year and had successfully collected 86.5% of that figure by the end of December 2019. In 2020 the target was raised to Rp1861.7trn ($131.2bn). This chapter offers an overview of Indonesia’s tax system, including the proposed omnibus laws, international taxation, zero-rated services, tax concessions and the luxury good sales tax, as well as outlines the online single submission system for the electronic processing of tax allowance applications and analyses regulatory efforts to boost the digital ecosystem. This chapter contains a viewpoint from Subianto, Partner and Digital Services Co-Leader, PwC Indonesia.