The e-commerce tax regulation that was scheduled to come into effect on April 1 could potentially become a roadblock for Indonesian e-commerce, sellers and platforms alike. Provisions included requiring online marketplace operators to report details of each seller’s turnover, mandating online sellers to register for a tax payer number (NPWP), and clarifying income tax rates to be paid by online sellers. Those making at least 4.8 billion rupiah (US$340,000) are required to charge customers’ VAT (value added tax), while online business classified as small and medium enterprises (SMEs) must pay 0.5 percent income tax on turnover or 25 percent corporate tax for larger enterprises.
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