JAKARTA, June 30 (Xinhua) -- Indonesia will implement a new withholding mechanism for Article 22 income tax on online marketplace sellers starting July 1, requiring e-commerce platforms to collect the levy on behalf of merchants, tax officials said Tuesday.
The Directorate General of Taxes said its systems were ready for the rollout after weeks of preparations with major e-commerce platforms.
A decree appointing designated tax collectors is due to be issued on Wednesday, it added.
Finance Minister Purbaya Yudhi Sadewa said the policy is intended to create a level playing field between online and brick-and-mortar retailers, stressing that it does not introduce a new tax but changes the collection mechanism. ■
