TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

E-commerce and tax game: The new regulation

Jakarta   /   Tue, February 12, 2019   /  09:09 am
E-commerce and tax game: The new regulation Ecommerce illustration (Shutterstock/William Potter)

Online merchants in Indonesia range from students and housewives to more sophisticated mid-size shop owners with a team of employees. For a long time, they have dealt with issues regarding tax collection and 
reporting. 

The first issue is that merchants often do not declare their incomes. Most merchants, especially micro, small and medium enterprises (MSMEs), do not declare nor pay the tax they are due, not only because it is bothersome, complicated and negatively affects sales, but because many merchants are not even aware of their tax obligations.

In order to address this issue, the government issued Government Regulation No. 23/2018, which lowers the final income tax to 0.5 percent from 1 percent for companies or individuals with a total turnover of below Rp 4.8 billion (about US$344,517) and give a transition period of as long as seven ...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.