Frustrated by Tax Officials, Head of Indonesian Game Company Considers Relocating Overseas

Jakarta, CNBC Indonesia - The founder of game developer Toge Productions, Kris Antoni, recently posted about tax issues in Indonesia. He complained about tax bills addressed to his company.

Regarding this issue, he even opened the possibility of moving Toge Productions’ operations to another country.

“After being pressured by tax officials with regulations that are made up, it makes me even more determined to start moving Toge Productions to another country. I have been trying to advance the Indonesian game industry for 17 years, but it seems my hopes are fading. I have tried my best,” said Kris in his post.

He also warned against accepting corrections that state there is an underpayment. Including the reason that salary costs during development must be amortized.

For information, amortization is the process of allocating costs to intangible assets. Usually in the form of copyrights, licenses, patents, trademarks, to research and technology development costs.

“If there is a game studio that is suddenly asked to pay an underpayment with the reason that employee salary costs during development must be amortized, even though you have never done or met the requirements to apply for capitalization of development costs, don’t accept it,” he added.

The Directorate General of Taxes (Ditjen Pajak) has also spoken out about this. However, it was only explained in general, that the provisions in taxation regulate the treatment of a cost based on its characteristics and useful life. This way, tax calculations can be carried out fairly, proportionally, and provide legal certainty.

The Directorate General of Taxes added that the examination process is ensured to be carried out professionally and objectively. Including providing space for dialogue and clarification to Taxpayers.

Finally, the DJP said it appreciates the important role in the game industry and the creative economy which is part of the future of the country’s economy.

Here is the DJP’s complete statement on the official @DitjenPajakRI account:

“We understand the attention and concern of the public, especially from players in the game and creative industries, regarding the issues that are developing. We would like to convey that the DJP is bound by law to maintain the confidentiality of tax data, so we cannot discuss or review the condition of a particular Taxpayer. In general, tax provisions regulate that the treatment of a cost is determined, among other things, based on its characteristics and useful life, to ensure that tax calculations are carried out fairly, proportionally, and provide legal certainty. We also emphasize that every examination process is carried out professionally and objectively, and provides space for dialogue and clarification to Taxpayers in accordance with applicable regulations. The DJP appreciates the important role of the game industry and the creative economy as part of the future of the Indonesian economy, and we are committed to continuing to provide services, assistance, and legal certainty that supports the growth of this sector. We invite the public to obtain tax information from official DJP sources.”