Tax Court Suggests Three Steps to Avoid Digital Economy Disputes

Jakarta, 6 November 2025 – Tax Court judge Junaidi Eko Widodo presented three recommendations to prevent tax disputes in the digital economy. The recommendations were outlined during a public Tax Court hearing.

The shift to fully digital transactions removes physical boundaries and creates new tax obligations, especially for VAT (Value Added Tax) and income tax. The judge noted that data mismatches or differing interpretations during audits can trigger disputes, including challenges to Tax Assessment Notices (SKP).

Strengthening audit procedures, establishing guidelines for tax collectors, and enhancing judges’ competence are expected to lower dispute rates and provide greater tax certainty for digital‑economy participants.