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INDONESIA: Online Businesses to be Taxed as of 1 April

As of 1 April this year, online businesses will have the same tax liabilities as conventional businesses. In line with this, any e-commerce business classified as a small and medium-sized enterprise (SME) will be liable to pay corporate income tax (CIT) at a rate of 0.5%, while larger e-commerce operators will be required to pay 25% CIT.

In addition, all online businesses will be required to submit their accounts to the Finance Ministry. They will also be obliged to obtain a tax identification number (NPWP) and file self-assessed income tax returns.

Content provided by Picture: HKTDC Research
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