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Indonesia set to tighten noose on online sellers evading tax


Online shops have boomed in Indonesia with vendors offering goods from refrigerators to condoms to the latest iPhone, often without declaring incomes. — 123rf.com

Online shops have boomed in Indonesia with vendors offering goods from refrigerators to condoms to the latest iPhone, often without declaring incomes. — 123rf.com

Indonesia plans to require online merchants to own tax identification numbers starting this year, part of efforts to boost revenue and improve compliance in the fast-growing e-commerce industry.

PT Tokopedia and PT Bukalapak.com will be among e-commerce companies which will ask sellers for identification numbers, known as NPWP, as a condition to operate on their platforms, according to Robert Pakpahan, the Finance Ministry’s director general of taxes. These platforms will submit a monthly report of transactions to the government, he said.

   

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