Thursday, 13 Augst 2020 | 15:45 WIB

Indonesia Finance Minister Revokes Regulation on E-Commerce Transaction Tax

Indonesia Finance Minister Sri Mulyani Indrawati (speaking) (kemenkeu)

JAKARTA, NETRALNEWS.COM - Indonesia Finance Minister Sri Mulyani Indrawati decided to revoke Minister of Finance Regulation Number 210/PMK010/2018 on Tax Treatments on Trade Transactions through Electronic Systems or e-commerce.

Sri Mulyani said the revoking of the Finance Minister Regulation was carried out in view of the need for further coordination and more comprehensive synchronization between the Indonesian ministries and institutions.

"I decided to withdraw PMK 210/2018. We withdraw it. Thus, there is an e-commerce tax that is confusing on April 1," said Minister of Finance in his statement in Jakarta, Friday (03/29/2019)

According to him, the coordination was carried out to ensure that "e-commerce" arrangements were more targeted, fair, efficient, and encouraged the growth of the digital economy ecosystem by listening to input from all stakeholders.

In addition, the withdrawal of this regulation also provided time for the government to conduct more intensive socialization and communication with all stakeholders, as well as prepare an e-commerce data reporting infrastructure.

With the revocation of the Finance Minister Regulation, the tax treatment for all economic actors still refers to the prevailing laws and regulations.

"Business people both e-commerce and conventional who receive income up to IDR 4.8 billion can take advantage of the final tax scheme at a rate of 0.5 percent of the total business turnover," she added.

Sri Mulyani continued that tax authorities will continue to prioritize cooperation and guidance for taxpayers, especially micro and small businesses, to increase the capacity and capability of business people related to aspects of marketing, access to credit, business development, and taxation.