Southeast Asia’s Largest Economy Readies Digital Goods Tax Rule

Indonesia’s government is preparing a regulation to enable it to collect a 10% value-added tax on digital products from August, matching a similar levy already imposed on physical goods.

The rule will detail the range of products to be taxed and how the levies will be collected, according to a statement from Indonesia’s tax office. Subscriptions to film and music streaming services, purchases of online content and digital gaming are among the range of products and services that will be covered, the tax office said.