Update COVID-19 in Indonesia: 1,368,069 confirmed infections, 37,026 deaths (5 March 2021)
6 March 2021 (closed)
USD/IDR (14,146) -6.00 -0.04%
EUR/IDR (17,335) +57.05 +0.33%
Jakarta Composite Index (6,258.75) -32.05 -0.51%
While reforms related to Indonesia’s corporate income tax rates remain in the planning stage, there is a new important regulation that will come into effect per 1 April 2019. Through Finance Ministry Regulation No. 210/PMK.010/2018 on the Taxation of Trade Transactions through Electronic System or E-commerce, which was signed on 31 December 2018, Indonesia will require e-commerce merchants (sellers) to share data with tax authorities and pay VAT and income taxes.
The e-commerce platforms (for example Tokopedia and Lazada) will be required to give data to authorities on how much money each vendor has made while selling its products and services through the online marketplace.
The new regulation does not impose any new tax rates but only aims at making sure that those who earn money through e-commerce platforms comply with tax regulations. Initially, the new regulation also required merchants who sell their products through the e-commerce platforms to list their tax identity number (in Indonesia known as NPWP). However, this rule met fierce opposition because registering for a NPWP means plenty of paperwork, particularly in the case of a corporate NPWP. Problematically, Indonesia is known for its tough bureaucracy and even though the central government has been trying to combat red tape, it remains a big problem in the biggest economy of Southeast Asia and drives many people to despair.
Poll Indonesia Investments:
At the end of 2019 the Indonesian rupiah exchange rate will be closest to ....
Voting possible: -
- IDR 13,000 per US dollar (33.9%)
- IDR 14,000 per US dollar (33.3%)
- IDR 15,000 per US dollar (25.8%)
- No opinion (7%)
Total amount of votes: 954
This articles discusses:
• the latest Corporate Tax Statistics report of the OECD
• Indonesia's plan to cut its corporate income tax rate
• Finance Ministry's new regulation related to the e-commerce industry
• revisions related to the luxury tax on yachts
• incentives for the repatriation of export earnings into Indonesia
• Indonesia's plans to encourage investors to keep amnesty repatriations onshore
Read the full article in the January 2019 edition of our monthly research report. You can purchase the report by sending an email to email@example.com or a WhatsApp message to the following number: +62(0)8788.410.6944