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The Star
14-07-2025
- Business
- The Star
Indonesia to require e-commerce platforms to collect tax on sellers
The ministry will notify a platform if it meets the criteria, which will be based on site traffic and total transaction value over the past 12 months. -- PHOTO: AFP JAKARTA (Reuters): Indonesia's finance ministry will require e-commerce platforms to collect and pass on an income tax on sales made by small- and medium-sized sellers, according to new regulations published on Monday. Platforms that meet certain criteria must withhold and pass on a 0.5% tax on sales made by sellers with an annual turnover of between 500 million rupiah to 4.8 billion rupiah (US$30,800 to $296,000). They must also share the sellers' information with tax authorities. The ministry will notify a platform if it meets the criteria, which will be based on site traffic and total transaction value over the past 12 months. While the directive is effective immediately, platforms will be given a month to comply. Reuters reported exclusively last month on the plan to impose the tax. The tax office has said the rules are intended to tackle the "shadow economy". Indonesia's e-commerce association idEA has said its members would comply, but expressed concern over the implementation timeline, with the regulation set to impact millions of sellers. Indonesia's main e-commerce operators include ByteDance's TikTok Shop and Tokopedia, Sea Limited's Shopee, the Alibaba-backed Lazada, Blibli and Bukalapak. South-East Asia's largest economy has a booming e-commerce industry, with last year's estimated gross merchandise value of US$65 billion expected to grow to US$150 billion by 2030, according to a report by Google, Singapore state investor Temasek and consultancy Bain & Co. ($1 = 16,240 rupiah) (Reporting by Gayatri Suroyo; Editing by David Stanway) - Reuters
Straits Times
14-07-2025
- Business
- Straits Times
Indonesia to require e-commerce platforms to collect tax on sellers
Find out what's new on ST website and app. The ministry will notify a platform if it meets the criteria, which will be based on site traffic and total transaction value over the past 12 months. JAKARTA - Indonesia's finance ministry will require e-commerce platforms to collect and pass on an income tax on sales made by small- and medium-sized sellers, according to new regulations published on July 14. Platforms that meet certain criteria must withhold and pass on a 0.5 per cent tax on sales made by sellers with an annual turnover of between 500 million rupiah (S$40,000) to 4.8 billion rupiah. They must also share the sellers' information with tax authorities. The ministry will notify a platform if it meets the criteria, which will be based on site traffic and total transaction value over the past 12 months. While the directive is effective immediately, platforms will be given a month to comply. Reuters reported exclusively last month on the plan to impose the tax. The tax office has said the rules are intended to tackle the 'shadow economy'. Indonesia's e-commerce association idEA has said its members would comply, but expressed concern over the implementation timeline, with the regulation set to impact millions of sellers. Indonesia's main e-commerce operators include ByteDance's TikTok Shop and Tokopedia, Sea Limited's Shopee, the Alibaba-backed Lazada, Blibli and Bukalapak. South-east Asia's largest economy has a booming e-commerce industry, with last year's estimated gross merchandise value of US65 billion expected to grow to US$150 billion (S$83 billion) by 2030, according to a report by Google, Singapore state investor Temasek and consultancy Bain & Co. REUTERS
Yahoo
26-06-2025
- Business
- Yahoo
Indonesia working on new e-commerce tax rule in bid to target 'shadow economy'
By Stefanno Sulaiman JAKARTA (Reuters) -Indonesia is working on a new regulation that will require e-commerce platforms to collect and pass on sellers' sales income in a bid to tackle the "shadow economy", its tax office said on Thursday, confirming a Reuters report earlier this week. Citing sources, Reuters reported exclusively on Tuesday about a planned directive that e-commerce platforms must withhold and pass onto the authorities a levy amounting to 0.5% of sales income from small and medium-sized sellers. Sources said the rule could be introduced as early as next month, though a statement from the tax office did not give any schedule amid concerns from some platforms that they would need time to implement such a directive. "The rule is still in the works and will be announced and explained to the public after," the statement said, adding that e-commerce platforms and other stakeholders have been consulted and have so far given their backing. Indonesia's e-commerce association idEA said on Wednesday that it will comply with any government policy, but expressed concern over implementation timelines, stressing that it needed to be handled carefully as it will impact millions of sellers. The changes would affect the country's main e-commerce operators, including ByteDance's TikTok Shop and Tokopedia Sea Limited's SE.N Shopee, Alibaba-backed Lazada, Blibli and Bukalapak one of the sources said. Sources also told Reuters there could be penalties for late reporting. ByteDance's TikTok, which runs Tokopedia, one of Indonesia's biggest e-commerce platforms, told Reuters in a statement that it would need time to implement the directives. Tokopedia has around 12 million sellers listed on its platform, and, in 2023, the total value of transactions reached 249 trillion rupiah ($15.3 billion), according to a company presentation. "We hope its implementation takes into account the need for adequate preparation time for various aspects. This includes the technical readiness of platforms and the capacity of sellers, especially small and medium-sized enterprises, to comply," TikTok said in the statement. The tax office said the regulation was intended to improve supervision of the "shadow economy" and vendors who do not pay taxes because of the perceived complexity of the filing process. Indonesia's has a booming e-commerce industry, with last year's estimated gross merchandise value of $65 billion expected to grow to $150 billion by 2030, according to a report by Google, Singapore state investor Temasek and consultancy Bain & Co. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
26-06-2025
- Business
- Reuters
Indonesia working on new e-commerce tax rule in bid to target 'shadow economy'
JAKARTA, June 26 (Reuters) - Indonesia is working on a new regulation that will require e-commerce platforms to collect and pass on sellers' sales income in a bid to tackle the "shadow economy", its tax office said on Thursday, confirming a Reuters report earlier this week. Citing sources, Reuters reported exclusively on Tuesday about a planned directive that e-commerce platforms must withhold and pass onto the authorities a levy amounting to 0.5% of sales income from small and medium-sized sellers. Sources said the rule could be introduced as early as next month, though a statement from the tax office did not give any schedule amid concerns from some platforms that they would need time to implement such a directive. "The rule is still in the works and will be announced and explained to the public after," the statement said, adding that e-commerce platforms and other stakeholders have been consulted and have so far given their backing. Indonesia's e-commerce association idEA said on Wednesday that it will comply with any government policy, but expressed concern over implementation timelines, stressing that it needed to be handled carefully as it will impact millions of sellers. The changes would affect the country's main e-commerce operators, including ByteDance's TikTok Shop and Tokopedia opens new tab, Sea Limited's SE.N, opens new tab Shopee, Alibaba-backed opens new tab Lazada, Blibli and Bukalapak opens new tab, one of the sources said. Sources also told Reuters there could be penalties for late reporting. ByteDance's TikTok, which runs Tokopedia, one of Indonesia's biggest e-commerce platforms, told Reuters in a statement that it would need time to implement the directives. Tokopedia has around 12 million sellers listed on its platform, and, in 2023, the total value of transactions reached 249 trillion rupiah ($15.3 billion), according to a company presentation. "We hope its implementation takes into account the need for adequate preparation time for various aspects. This includes the technical readiness of platforms and the capacity of sellers, especially small and medium-sized enterprises, to comply," TikTok said in the statement. The tax office said the regulation was intended to improve supervision of the "shadow economy" and vendors who do not pay taxes because of the perceived complexity of the filing process. Indonesia's has a booming e-commerce industry, with last year's estimated gross merchandise value of $65 billion expected to grow to $150 billion by 2030, according to a report by Google, Singapore state investor Temasek and consultancy Bain & Co.
