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Indonesia's e-commerce firms to collect tax on sellers' income starting Nov 1

Indonesia's e-commerce firms to collect tax on sellers' income starting Nov 1 

- Indonesia's e-commerce marketplaces will start collecting income tax from sellers on their platforms starting from November 1, the country's tax office said late on Wednesday, after Jakarta delayed the plan for a second time to boost purchasing power.

Below are details from the tax office's statement:

  • "This postponement was implemented as an effort to maintain public purchasing power amid economic conditions that remain a focus of the government," the tax office said.

  • Income tax already collected from the sellers will be refunded, the tax office added.

  • ​Tokopedia, controlled by ByteDance's TikTok and ​partly owned by Indonesia's biggest tech company GoTo GOTO.JK, together with Sea Limited's SE.N Shopee, the Alibaba-backed 9988.HK Lazada, and Blibli BELI.JK, have been appointed as tax collectors, the government previously said.

  • The tax office said in the statement that it will cancel the appointments of those four marketplaces and re-issue the selection at a later stage.

  • In response, Indonesia's e-commerce industry association idEA said on Wednesday that the marketplaces have been making preparations to enable the collection to run more smoothly when it finally takes place.

  • Jakarta originally intended to implement the tax collection plan last year but delayed it to this year following complaints from sellers and platforms.


(Reporting by Stefanno Sulaiman; Editing by David Stanway)

((Stefanno.Sulaiman@thomsonreuters.com;))

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