Kamis, Januari 17, 2019

Tax Collection from Individual E-Commerce Businesses Viewed as Irrelevant

As of 31 December 2018, the Minister of Finance began the process promulgating Regulation No. 210/PMK.010/2018 on Taxation Treatments for Trade Transactions Undertaken through Electronic Systems (E-Commerce). However, prior to its planned implementation on 1 April 2019, the regulation has already led to a number of criticisms being aired by businesses, specifically in terms of the requirement for businesses who wish to trade their products through the marketplace to submit taxpayer identification numbers (“NPWP”).
The submission of NPWP is widely considered irrelevant for individual businesses which are not classified as taxable businesses [PKP] and is leading to uncertainty in terms of the mechanism which will be used for this planned process. Therefore, as a result of this unease, the NPWP submission requirement now has been unofficially revoked by the Indonesian Government.
However, the collection of taxes from individual businesses who enjoy the use of the domestic marketplace may ultimately be introduced in the future. Indeed, with this eventual goal in mind, deliberations which address prospective arrangements for the classification of individuals as taxable businesses, as well as on the classification of e-commerce players and the preparation of tax invoices for individual businesses are currently underway.
As a replacement for the NPWP, businesses may now submit their citizenship identity numbers (Nomor Induk Kependudukan/NIK) to marketplace providers who are looking to offer assurances to their customers.
For more on this story, see Hukumonline: “Perlu Regulasi Baru Bila Pemerintah Ingin Tarik Pajak E-Commerce Individu”.

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As of 31 December 2018, the Minister of Finance began the process promulgating Regulation No. 210/PMK.010/2018 on Taxation Treatments for Trade Transactions Undertaken through Electronic Systems (E-Commerce). However, prior to its planned implementation on 1 April 2019, the regulation has already led to a number of criticisms being aired by businesses, specifically in terms of the requirement for businesses who wish to trade their products through the marketplace to submit taxpayer identification numbers (“NPWP”).
The submission of NPWP is widely considered irrelevant for individual businesses which are not classified as taxable businesses [PKP] and is leading to uncertainty in terms of the mechanism which will be used for this planned process. Therefore, as a result of this unease, the NPWP submission requirement now has been unofficially revoked by the Indonesian Government.
However, the collection of taxes from individual businesses who enjoy the use of the domestic marketplace may ultimately be introduced in the future. Indeed, with this eventual goal in mind, deliberations which address prospective arrangements for the classification of individuals as taxable businesses, as well as on the classification of e-commerce players and the preparation of tax invoices for individual businesses are currently underway.
As a replacement for the NPWP, businesses may now submit their citizenship identity numbers (Nomor Induk Kependudukan/NIK) to marketplace providers who are looking to offer assurances to their customers.
For more on this story, see Hukumonline: “Perlu Regulasi Baru Bila Pemerintah Ingin Tarik Pajak E-Commerce Individu”.

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