JAKARTA - The government plans to impose taxes on domestic e-commerce businesses. Not only large e-commerce companies, but MSME e-commerce players will also be subject to taxes.
"MSME e-commerce tax is planned to be collected at 1 percent, while for larger businesses, we will discuss it later," said Minister of Communication and Information Rudiantara at the Coordinating Ministry for Economic Affairs building, Jakarta, Thursday (14/1/2016).
According to him, the government will protect domestic e-commerce entrepreneurs so they can compete with large e-commerce companies that have already developed in Indonesia. "We will protect micro e-commerce businesses. But for large ones, the tax will also be high," he emphasized.
For information, the Ministry of Finance is currently focused on developing tax collection regulations for e-commerce. Meanwhile, the tax for foreign media companies such as Netflix will likely be discussed after the e-commerce tax is implemented.
Currently, foreign media companies operating via credit cards and e-commerce businesses are not yet subject to tax in Indonesia. However, the government, through the Coordinating Ministry for Economic Affairs, is developing regulations on e-commerce taxation in Indonesia. (Source: okezone.com)