Indonesia is pushing online platforms to collect taxes on sellers' incomes, a measure originally slated for last year but postponed following pushback from sellers and platform operators, according to Inside Retail Asia.
The policy requires e-commerce marketplaces and other online platforms to withhold and remit income tax on behalf of their merchant sellers. The Indonesian government had initially scheduled implementation in the previous year but delayed it to this year after complaints about the added administrative burden and potential impact on small sellers.
The move aligns with broader efforts across Southeast Asia to expand tax collection in the fast-growing digital economy. For platform operators, this means upgrading their systems to handle tax calculations and reporting, while sellers face reduced net payouts. The delayed rollout suggests authorities are balancing fiscal goals with concerns from the e-commerce sector.