DJP: Money Transfers Abroad Are Not Automatically Subject to VAT
The SPP-TDLN scheme starting Nov. 9, 2026 applies only to certain overseas digital transactions that meet VAT criteria.
The Directorate General of Taxes said personal fund transfers and remittances abroad are not automatically subject to value-added tax. The clarification came after remarks by Kadin Indonesia Advisory Board Chairman Hashim Djojohadikusumo fueled concern that all overseas transactions would be taxed starting Nov. 9, 2026. According to DJP, the policy in question is the Value-Added Tax Collection System on Overseas Digital Transactions, or SPP-TDLN. The system is not a new tax, does not change the VAT rate, and applies only to overseas digital transactions that meet the criteria as VAT objects. DJP also said the scheme is designed to prevent double collection if VAT has already been collected by designated PMSE businesses.