Indonesia: E-commerce businesses subject to new tax law in April

• Jan 14, 2019

E-commerce businesses will soon be required to have tax numbers (NPWPs) and report their recapitulation of trade transactions to the Finance Ministry following its newly issued regulation on taxation for online trade transactions.

Having been approved by the Law and Human Rights Ministry and signed by Finance Minister Sri Mulyani Indrawati, the new e-commerce tax regulation will come into effect on April 1.

Taxation director general spokesman Hestu Yoga Saksama said the ministry would familiarize the public with the regulation prior to its implementation.

“Through the regulation, the government wants to create equality between the conventional business and e-commerce businesses in terms of taxation,” he said as quoted by kontan.co.id.

Hestu said the regulation focused on helping e-commerce players create reports on their businesses for submission to the government. Moreover, the ministry will encourage and help them register for their NPWPs through e-commerce platforms.

“The point is we want to enforce tax compliance among digital businesses,” he added. (das/dmr)

Source: https://www.thejakartapost.com/news/2019/01/13/e-commerce-businesses-subject-to-new-tax-law-in-april.html