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On E-Commerce Tax: The Government Agrees Not To Require TIN for Online Sellers

There will be special rules from Directorate General of Taxation to handle the details

Marsya Nabila - 18 January 2019

Finance Minister Sri Mulyani agreed not to require online sellers to have Taxpayer Identification Number (NPWP). It’s a result of an agreement with Indonesian E-Commerce Association (IDEA) held this afternoon (16/1).

Sri Mulyani said this decision was taken after considering many sellers in marketplace platform have income below the Non-Taxable Income (PTKP) or Rp54 million per year. Therefore, TIN is not required in the policy.

“We’ve had a lot of discussion with them on what idEA said most sellers are students or housewives who want to start running business through marketplace platform. They don’t need to be requested for ID or TIN,” she said, quoted Katadata.

Further detail of the regulation will be issued by Directorate General of Taxation, said Sri Mulyani. However, she emphasized, the Financial Ministry Regulation (PMK 210) won’t change. The government’s enthusiasm as outlined in this policy is not merely a desire for a single tax. In fact, they’re encouraging a new industry growth with strict regulations.

“This PMK is not the one that collects online taxes but the procedures are implying that it requires ID or TIN. We announce that there’s no need for ID or TIN number. It’ll be in Directorate General Regulation (Perdirjen).”

The second decision is a commitment to maintain the level of playing field between marketplace platform organizer with social media. Sri Mulyani aware of the fear and committed to make an intensive discussion with all business players to maintain the ecosystem.

Last, is to make it easier to report for the marketplace platform organizers. In t erms of regulation, they’ve informed some data to Kemkominfo, BPS, and BI.

The government will make information distribution from the marketplace as simple as possible. If necessary, it’ll be made seamless or currently attached in the business model that wouldn’t require special effort.

“Therefore, they [marketplace platform] don’t need to feel bothered to go after institutions one by one. No special effort to deliver necessary information for institution because we’ll be the one to coordinate it,” she explained.

On the same occasion, Ignatius Untung is attended as the Chairman of IDEA. He appreciates Sri Mulyani’s response to their opinion.

“We, from idEA, are so glad. We have the same spirit, not to create fear for the business but otherwise. We [e-commerce] are very comply with the regulations and Finance Ministry to support other business model growing the same playing field,” he mentioned.

Previously, idEA showed its objection to the government after the PMK 210 was issued on (1/14).


Original article is in Indonesian, translated by Kristin Siagian

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