Indonesian ecommerce businesses are subject to new tax law

Monday 14 January 2019 11:35 CET | News

The Indonesian government has announced that ecommerce companies in the country will be subject to a new ecommerce tax law starting with April 1, 2019.

According to the new law, ecommerce businesses will be required tax numbers (NPWPs) and will have to report their recapitulation of trade transactions to the Finance Ministry following its newly issued regulation on taxation for online trade transactions.

According to The Jakarta Post, the ministry would familiarise the public with the regulation prior to its implementation. The regulation is aimed to create equality between the conventional business and ecommerce businesses in terms of taxation.

Moreover, the ministry will encourage and help ecommerce players to register for their NPWPs through ecommerce platforms.

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Keywords: Indonesia, ecommerce, NPWPs, ecommerce platform, online trade
Countries: World