Indonesia to begin e-commerce tax collection
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Jakarta: Indonesia will start making e-commerce platforms collect income taxes from sellers from October 1, one month sooner than initially planned, according to local media citing the tax chief. This change comes a month earlier than previously announced and follows a recent shift in leadership at the Finance Ministry. The ministry and tax office have not yet commented on the matter.
Initially, the tax office had tasked some of the biggest platforms in Southeast Asia's largest economy to start collecting taxes from sellers in August. However, the previous finance minister, Purbaya Yudhi Sadewa, delayed the implementation on August 5 due to concerns about potential negative impacts on purchasing power. The tax office later promised refunds for any taxes paid prematurely and extended the delay until November 1.
Purbaya was recently dismissed, and his deputy, Suahasil Nazara, was appointed as the third finance minister in less than two years. Bimo Wijayanto, the head of the Indonesian Finance Ministry's Tax Department, confirmed that the regulation and implementation will be activated immediately, stating that they are ready for the task.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
