Indonesia to require e-commerce platforms to collect tax on sellers

The ministry will notify a platform if it meets the criteria, which will be based on site traffic and total transaction value over the past 12 months. -- PHOTO: AFP

JAKARTA (Reuters): Indonesia's finance ministry will require e-commerce platforms to collect and pass on an income tax on sales made by small- and medium-sized sellers, according to new regulations published on Monday.

Platforms that meet certain criteria must withhold and pass on a 0.5% tax on sales made by sellers with an annual turnover of between 500 million rupiah to 4.8 billion rupiah (US$30,800 to $296,000).