Page 6 - Newsletter (Changes in The Taxation Provisions of International Trade and Digital Economy)

DDTC Newsletter Vol.01 | No.04 I April 2019 Page 6 of 6

CHANGES IN THE TAXATION PROVISIONS OF INTERNATIONAL TRADE AND
DIGITAL ECONOMY

The Latest Regulation of Taxation on The tax liabilities regulated by this MoF Regulation
E-Commerce Annulled are the same types of taxes also applied to businesses
that are run conventionally, namely Income Tax (Pajak
Penghasilan/PPh), Value Added Tax (Pajak Pertambahan
The government’s efforts to conduct tax extensification
Nilai/PPN), and customs and excise in accordance with
through the issuance of taxation provisions on
7
prevailing regulations. However, due to concerns that this
e-commerce was annulled after the Press Release of DGT
regulation would be unproductive because of the public
6
was published on 29 March 2019. The latest provisions
misconception, the government has decided to implement
regarding the taxation of e-commerce regulated through
more comprehensive coordination and synchronization
MoF Regulation Number 210/PMK.010/2018 concerning
between ministries/agencies.
the Taxation on Trade Transactions through Electronic
Systems (E-Commerce) (MoF Regulation No. 210/2018)
More intensive aspects of socialization and communication
was supposed to come into effect as of 1 April 2019.
with all stakeholders also underlie the annulment of this
MoF Regulation in which the association is the key player.
One of the reasons beyond the government’s decision is
The Indonesian government still awaits the results of a
the obscurity and vagueness concerning the e-commerce
survey from the Indonesian E-Commerce Association
taxes. This new rule is wrongly perceived as imposing new
(IdEA) regarding the market share of Indonesia’s digital
types and rates of taxes for e-commerce players whereas
economy scheduled to be completed by the end of this
this MoF Regulation is actually arranged to emphasize
year. In the foreseeable future, the government hopes that
that there is no difference in the field of taxation between
there will be no misconception or resistance from business
online and conventional business transactions. Hence, this
player in terms of the tax provisions for digital activities.
regulation will guarantee the equality of a level playing
field.
6 The Ministry of Finance of the Republic of Indonesia, “Tarik PMK e-Commerce,
Menkeu Tegaskan Komitmen Dorong Ekosistem Ekonomi Digital,” Press Release 7 Hence, the taxation provisions on e-commerce transactions still refer to
(29 March 2019), Internet, can be accessed at: https://www.kemenkeu.go.id/ the Director General of Taxes Circular Number SE-62/PJ/2013 concerning the
publikasi/siaran-pers/siaran-pers-tarik-pmk-e-commerce-menkeu-tegaskan- Affirmation of Taxation Provisions on E-Commerce Transactions and SE-06/
komitmen-dorong-ekosistem-ekonomi-digital/. PJ/2015 concerning the Withholding of Income Tax on E-Commerce Transactions.
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For further information and advice related to taxation, please contact:
David Hamzah Damian, S.Sos., BKP., ADIT Romi Irawan S.E., M.B.A., LL.M Int. Tax B. Bawono Kristiaji, S.E., M.S.E., M.Sc. IBT., ADIT
Partner of Tax Compliance & Litigation Services Partner of Transfer Pricing Services Partner of Tax Research & Training Services
[email protected] [email protected] [email protected]

Deborah, S.Sos., LL.M. Int. Tax., BKP Yusuf Wangko Ngantung, LL.B., LL.M Int. Tax., ADIT Herjuno Wahyu Aji, M.Ak., BKP
Senior Manager of Tax Compliance & Litigation Services Senior Manager of International Tax / Transfer Pricing Services Senior Manager of Tax Compliance & Litigation Services
[email protected] [email protected] [email protected]

Ganda Christian Tobing, S.Sos., LL.M. Int. Tax Anggi P.I. Tambunan, S.Sos., M.H., ADIT., BKP Khisi Armaya Dhora, S.I.A., BKP
Senior Manager of Tax Compliance & Litigation Services Manager of Tax Compliance & Litigation Services Manager of Tax Research & Training Services
[email protected] [email protected] [email protected]

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