The Finance Minister Regulation (PMK) No.210/PMK.010/2018 on e-commerce has just been issued by the Ministry of Finance—the new regulations come into effect on April 1. With digital businesses taking over the industry one day at a time and new online stores being launched every day, the government is getting serious about increasing the taxes on them. The rule states that e-commerce enterprises have to report income tax obligations (PPh) and online stores have to collect and deposit taxes.
Other than income tax, the Ministry of Finance has also issued a 10 per cent value-added tax (VAT) and luxury goods sales tax (PPNBM). The procedure requires all e-commerce platforms to carry a taxpayer identification number (NPWP). The law also covers online stores. Online traders are required to pay a final tax at a rate of 0.5 per cent of turnover. If companies’ final year turnovers reach more than Rp4.8 billion, the company gets the title of a taxable entrepreneur.
Additionally, the same rules apply to celebgrams or Instagram celebrities and other Instagram accounts that have a lot of attentions and followers. The Directorate General of Taxes (DGT) released a system called “social network analytics” (SONETA) and VAT. The Director of Transformation of Communication and Information Technology at the Directorate General of Taxes, Iwan Djuniardi, stated that a sonnet system will be integrated with every social media account later. Currently, the system runs internally within the tax authority.
Indonesia Tatler has reached out to some influencers and asked about their take on this matter. However, they haven’t said anything yet and some even refused to give a statement, but we’re sure loyal when it comes to paying taxes. Stay tuned for our next update and till then, don’t forget to pay your taxes!