To Avoid Restlessness, Sri Mulyani Retracts e-Commerce Tax Regulations

Jakarta CNBC Indonesia – Another policy has been added to the list of wishy-washy government policy that Joko Widodo’s government created. After the cancellation of the increase in fuel prices and airport toll rates, the government has now canceled the e-commerce tax rules.

A few weeks before the presidential election will take place, the e-commerce tax regulation issued late last year that should have taken effect on April 1, 2019 today, was suddenly canceled by the government.

The decision to revoke the regulation was acknowledged by Finance Minister Sri Mulyani, because it was thought to have triggered a misunderstanding on various parties. The government feels the need to withdraw the legal basis so as not to create uncertainty.

Sri Mulyani reputed that the implementation of e-commerce tax rules was considered to produce a new form of tax. In fact, this regulation clarifies the concerns of e-commerce merchant registration. The government feels it is still necessary to conduct further socialization.

“I want to convey an announcement to the media, first of all, many media have reported about the Ministry of Finance Regulation Number 210 (PMK 210) as if the government has created a new type of tax,” Sri Mulyani said.

“So much confusion. […] So, I have decided to withdraw PMK 210/2018. Thus the confusion that on the 1st of April there will be e-commerce tax is not true, we decided to withdraw the Ministry of Finance Regulation (PMK),” he said on Friday.

Thus, the tax regulations relating to e-commerce taxes will revert back to the previous regulations, namely income up to Rp. 4.8 billion is subject to 0.5% tax or refers to tax regulation concerning MSME actors.

“E-commerce economic practitioners want to be treated equally between them and social media economic practitioners. Conventionally they want their (social media economic practitioners) taxes the same as e-commerce,” he said.

IDEA Chairman Ignasius Untung also appreciated the government’s decision. According to him, the government and e-commerce associations have the same goal, namely to promote and support the digital industry together.

“Because from the very beginning of the discussion, our enthusiasm and enthusiasm was basically the same. We are very appreciative of the cooperation shown by the Ministry of Finance and DGT teams from the very beginning,” he said.

“So we appreciate the decision to make this policy a policy that prioritizes the greater interest of the whole, and that this is a very good decision from Mrs. SMI and others ranked within the Ministry of Finance.”

 

For further information, the following are the main points from the regulation in PMK-210/2018 drawn by Sri Mulyani.

1. For traders and service providers who sell through the marketplace platform

  • Notify Tax ID / Taxpayer Identification Number (TIN) to the platform marketplace provider;
  • If you do not have an TIN, you can choose to (1) register to receive a TIN, or (2) notify the National Registration Number (NIK) to the platform marketplace provider;
  • Carry out obligations related to Income Tax in accordance with applicable regulations, such as paying final tax at a rate of 0.5% of turnover in the event that turnover does not exceed Rp. 4.8 billion in a year, as well as
  • Inaugurated as Taxable Entrepreneurs in terms of turnover exceeding Rp. 4.8 billion in a year, and implementing VAT related obligations in accordance with applicable regulations.

2. Obligations of platform marketplace providers

  • Having a Tax ID / TIN (NPWP), and confirmed as Taxable Entrepreneurs;
  • Collect, deposit, and report VAT and Income Tax related to the provision of a marketplace platform service to traders and service providers;
  • Collect, deposit, and report VAT and Income Tax related to the sale of merchandise belonging to the provider of the market place platform itself, as well as
  • Report a recapitulation of transactions conducted by merchant user platforms.

To be known, what is meant by a platform marketplace provider is a party that provides a facility that functions as an electronic market where platform users and service providers can offer goods and services to prospective buyers.

Platform marketplace providers that are known within Indonesia include Blibli, Bukalapak, Elevenia, Lazada, Shopee, and Tokopedia. In addition to these companies, over-the-top players in the transportation sector are also classified as the provider of the marketplace platform.

3. For e-commerce outside the marketplace platform

Business actors that carry out trade in goods and services through online retail, classified ads, daily deals, and social media must comply with the provisions relating to VAT, Luxury Goods Tax, and Income Tax should be subjected in accordance with applicable tax regulations.

 

Source : https://www.cnbcindonesia.com/news/20190401082117-4-63971/ogah-bikin-resah-sri-mulyani-tarik-aturan-pajak-e-commerce

The Director General of Taxation Press Release Number SE – 08/PJ/2019 Claims / Benefits of Insurance for Life Insurance Companies
The Director General of Taxation Press Release Number SE – 08/PJ/2019 Claims / Benefits of Insurance for Life Insurance Companies

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