Indonesia looking into taxing foreign e-commerce firms

Country exploring ways to level playing field, as local online firms pay taxes but not foreign players

Foreign-registered competitors such as eBay and Alibaba are not paying any taxes in Indonesia.
Foreign-registered competitors such as eBay and Alibaba are not paying any taxes in Indonesia.PHOTO: REUTERS

The Indonesian authorities are exploring ways to tax foreign e-commerce companies that do business in Indonesia, to level the playing field with local online firms that do pay taxes.

Suggestions include making it a requirement for e-commerce firms that sell to consumers in the world's fourth most populous nation to disclose their audited financial reports, and having them incorporate local entities for tax purposes.

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A version of this article appeared in the print edition of The Straits Times on November 21, 2018, with the headline 'Indonesia looking into taxing foreign e-commerce firms'. Subscribe