Indonesia is moving forward with plans to introduce more stringent taxation measures specifically targeting the burgeoning e-commerce sector. The government aims to tighten oversight and improve tax collection from online transactions, which have grown exponentially but remain partially untaxed. Officials believe that by imposing clearer rules and improving digital tax infrastructure, they can significantly reduce the size of the country’s shadow economy, estimated to involve billions of dollars in unreported revenues each year.

Key features of the proposed taxation framework include:

  • Mandatory registration and tax reporting for all e-commerce platforms operating domestically.
  • Increased transparency requirements for online sellers and marketplaces.
  • Enhanced cooperation between tax authorities and payment gateways for real-time transaction tracking.
Aspect Current Status Planned…