The government has just issued Regulation of The Minister of Finance of The Republic Indonesia Number 69/PMK.03/2022 (PMK 69/2022) concerning Income Tax and Value Added Tax on the Implementation of Financial Technology, which will be implemented on May 1, 2022.
This regulation governs tax imposition for peer-to-peer lending (P2P lending) as well as other types of financial technology (fintech), such as payment services, crowdfunding, investment management, online insurance, and digital financial support services. Electronic wallets (such as OVO, DANA, Gopay, Paylater, etc), is one example of fintech that is often used by public.
Lending and borrowing service is a service to bring together lenders and borrowers to enter into lending and borrowing agreements directly through an electronic system using internet network, including those that apply sharia principles.
Parties involved in lending and borrowing services consist of lenders, borrowers, and providers of lending and borrowing services. The lender earns income in the form of interest loan. This interest income is subject to withholding income tax article 23 and article 26.
Income tax article 23 rate is 15% of the gross amount of interest. This will apply if the Taxpayer is a resident or a permanent establishment. Furthermore, if the lender is a foreign taxpayer other than a permanent establishment, income tax article 26 will apply at a rate of 20% of the gross amount of interest.
The imposition of VAT on fintech is not on the number of transactions that occur, but on the fees for the services provided by fintech.
financial-technology , fintech , vat , vat-object , vat-rate
