Monday, 01 April 2019 10:16

Gov. cancels Regulation No. 210/2018

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On December 31, 2018, Minister of Finance, Sri Mulyani Indrawati signed the Minister of Finance Regulation (PMK) No. 210/2018 concerning the Tax Treatment of Trade Transactions through Electronic Systems (e-Commerce). But on March 29, 2019, the government announced that the plan to implement the PMK is fully canceled on April 1, 2019.The reason for the cancellation, according to Minister Sri Mulyani, was the lack of socialization. As a result, many stakeholders misunderstood the regulation. So, enough additional time is needed for the socialization.Actually, the policy taken by the government through the Minister of Finance was aimed to create equal treatment between employers through electronic systems (e-Commerce) and conventional one. Although the aim is good, the government through the Minister of Finance does not insist on continuing to implement it as planned.Substantially, PMK No. 210/2018 is intended not to burden e-commerce entrepreneurs. Its contents focus more on regulating general rights and obligations, and emphasizing registration as a taxpayer for entrepreneurs. Because, many parties do not understand the substance, the polemic still arises. The government does not want the polemic to have a detrimental effect on e-commerce that has been so popular nowadays.Indonesia is the 10th largest country in e-commerce growth, even reaching 78%. The e-commerce sector contribution to the Indonesian economy has the potential to continue to increase, as the population increases using the internet and increasing penetration of e-commerce. According to the McKinsey study, in 2022 online trading will create 26 million jobs both directly and indirectly.


 

Read 316 times Last modified on Friday, 05 April 2019 08:51