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View all search resultsGovt to require e-commerce platforms to collect tax from sellers
A new regulation is in the works that aims to collect sales tax via e-commerce platforms, coming at a time industry recorded a slowdown in GMV growth from just 3.7 percent in 2023 to 5 percent last year.
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Workers sort packages for shipping on Aug. 30, 2023, at the warehouse of e-commerce giant Shopee in Cengkareng, West Jakarta.
(Antara/M Risyal Hidayat)
T
he government is looking to collect more taxes from the e-commerce industry by pushing firms to withhold income tax from sellers on their platforms, just as market growth flattens to its slowest pace in years, as part of a broader effort to boost state revenue and create parity with brick-and-mortar retailers.
A new regulation set to be issued as early as next month will require major platforms operating in the country to collect and remit a 0.5 percent income tax on sellers earning between Rp 500 million (US$30,500) and Rp 4.8 billion ($293,000) annually, Reuters reported on Wednesday, citing anonymous sources.
Online marketplaces that will be subject to the new rule include TikTok Shop and Tokopedia of Chinese digital giant ByteDance, Shopee of Singapore’s Sea Limited, Lazada of China’s Alibaba Group and Blibli of Djarum subsidiary Global Digital Niaga.
Read also: RI digital economy shows double-digit growth, yet funding still subdued
After booming for years, Southeast Asia’s largest digital economy has seen a sharp slowdown in growth amid squeezed margins and a push for profitability.
Indonesia’s gross merchandise value (GMV) grew just 5 percent in 2024 following an even slower 3.7 percent growth in 2023, according to a report released on Thursday by Singapore-headquartered venture outfit Momentum Works.
Last year’s growth was on par with GDP growth of 5.03 percent, placing the country well behind regional peers like Thailand and Malaysia, both of which saw double-digit gains in their online retail industry.
