Indonesia Issues Huge Fines
Johnson 16 Dec 2024 12:15EN
As Southeast Asian countries pay more attention to tax compliance issues, they are gradually implementing stricter regulatory policies for individuals and business owners who fail to pay taxes as required.
According to sellers in Indonesia, every transaction is closely monitored by the tax department, especially for online sales platform Mall stores.
According to current regulations, sellers need to pay back taxes according to a certain percentage of sales, which is about 11%. Some merchants have received a huge fine of 35 million yuan for failing to comply with relevant tax regulations, and the seller has been banned from leaving the country until his tax issues are properly resolved.
At the same time, in response to tax compliance issues, Indonesian President Prabowo emphasized on December 6 that the new 12% VAT policy will be implemented in accordance with the law from 2025, but it will be applied selectively. He pointed out that the VAT increase only applies to luxury goods, and the government will continue to make protecting the interests of the people its top priority.
In order to alleviate the impact of this policy on businesses and consumers, on December 9, Susiwijono Moegiarso, Secretary of the Coordinating Ministry of Economic Affairs of Indonesia, said that the government is currently finalizing fiscal incentives for 2025 to compensate for the impact of the increase in VAT rate to 12%.
According to sellers in Indonesia, every transaction is closely monitored by the tax department, especially for online sales platform Mall stores.
According to current regulations, sellers need to pay back taxes according to a certain percentage of sales, which is about 11%. Some merchants have received a huge fine of 35 million yuan for failing to comply with relevant tax regulations, and the seller has been banned from leaving the country until his tax issues are properly resolved.
At the same time, in response to tax compliance issues, Indonesian President Prabowo emphasized on December 6 that the new 12% VAT policy will be implemented in accordance with the law from 2025, but it will be applied selectively. He pointed out that the VAT increase only applies to luxury goods, and the government will continue to make protecting the interests of the people its top priority.
In order to alleviate the impact of this policy on businesses and consumers, on December 9, Susiwijono Moegiarso, Secretary of the Coordinating Ministry of Economic Affairs of Indonesia, said that the government is currently finalizing fiscal incentives for 2025 to compensate for the impact of the increase in VAT rate to 12%.
