Marketplace Tax Collection Requires Strict Supervision to Be on Target

The mechanism for collecting Income Tax Article 22 through marketplaces is considered to need stricter supervision to ensure it is on target. Tax observer from Pelita Harapan University, Ronny Bako, assessed that the government not only needs to ensure the collection system runs but must also be able to identify business actors who genuinely hold micro, small, and medium enterprise status. According to Ronny, clarity regarding SME criteria is fundamental before the policy is widely implemented. He assessed that there are still loopholes allowing large-scale business actors to utilise SME status through other parties, potentially avoiding proper tax obligations. “Every SME actor must have their criteria clarified. If we look in the field, wealthy individuals also play in the SME sector by providing capital to certain people,” Ronny said. “For that, the beneficial owner of the SME must be disclosed. Do not let big players use the SME label by instructing others,” he continued. He stressed that the main principle in taxation policy is fairness. Therefore, the government must be able to distinguish SME actors who genuinely meet the criteria from business actors who only use SME status as a front to obtain various facilities. Furthermore, Ronny questioned the government’s readiness to detect all digital trading activities. According to him, transactions do not only occur on official marketplaces but also through social media such as Facebook and various other digital platforms that also need attention. “The government must detect players in marketplaces, both official and unofficial ones like selling on Facebook and the like,” he said. Ronny also assessed that transaction value transparency is an important factor in supporting the effectiveness of tax collection. He proposed that the government appoint official banks, both state-owned and private, as a means of recording transactions so that the value of digital trade can be monitored more accurately. On the other hand, the government is asked not to focus solely on digital trade. According to him, the existence of traditional traders and business actors outside marketplaces also needs attention so that taxation policy does not cause negative impacts on business continuity or the potential for layoffs. Ronny added that the implementation of the Article 22 Income Tax collection policy also faces a number of technical challenges. According to him, Indonesia’s vast territory, the uneven quality of internet networks, and the potential for moral hazard can hinder the effectiveness of the policy’s implementation. Therefore, he assessed the government needs to ensure infrastructure readiness and cross-ministerial coordination so that policy implementation runs optimally. In addition, public education must be carried out from the start, not after problems arise in the field. Ronny also emphasised the importance of strong coordination between the Ministry of Finance, the Ministry of Communication and Digital, and related ministries and agencies, given that each has different authorities. “The most important thing is how the government educates the public. Do not let the government only react after an incident occurs. In addition, it needs to be ensured whether the Ministry of Finance, Komdigi, and related ministries have coordinated well,” he said. Furthermore, Ronny assessed that local governments also need to be involved in the policy’s implementation. According to him, regions as the location of community economic activity should receive a certain portion of Article 22 Income Tax revenue through a revenue-sharing fund scheme so that the benefits of the policy can be felt more evenly while strengthening supervision at the regional level. Separately, Director General of Taxes at the Ministry of Finance, Bimo Wijayanto, confirmed that supervision is carried out by identifying business actors based on turnover, both those with gross circulation below and above Rp500 million, as part of a more accurate tax administration system. The supervision process also utilises data from the submission of Annual Tax Returns, both for individual and corporate taxpayers. Data received during the reporting period serves as one basis for matching information held by the DGT. In addition, the DGT found that there are still a number of taxpayers with dormant status, yet detected as having transactions through their counterparties. These findings serve as an indicator for the tax authority to conduct further examinations of taxpayer compliance. According to Bimo, the DGT is now increasingly relying on data exchange with various ministries, agencies, local governments, and associations to perform information matching. This step is strengthened by the integration of the Population Identification Number and the Taxpayer Identification Number so that the quality of the data held becomes more accurate. “Usually we detect it like that, data exchange which has been very effective with many institutions, government agencies, associations and also local governments is our basis for cross-checking,” said Bimo. Through this comparative data, the DGT can identify whether the information submitted voluntarily by taxpayers is appropriate or still requires clarification. This approach is expected to improve the quality of supervision while strengthening voluntary compliance among taxpayers. Bimo assessed that the digital trade sector still holds significant tax revenue potential. Based on the DGT’s observations over the last five years, revenue from this sector has consistently increased, reaching Rp24 trillion. Through the implementation of the new collection mechanism, the DGT hopes that taxpayer compliance levels will increase further, followed by collection accuracy.