Indonesia to make ecommerce firms collect tax on sellers’ sales, sources say

Indonesia plans to implement new regulations requiring e-commerce platforms to withhold tax on their sellers’ sales income in a bid to boost revenues, according to two industry sources informed of the move and a document seen by Reuters.

The planned directive, which also aims to level the playing field with brick-and-mortar shops, could be announced as soon as next month, one of the sources said, as Southeast Asia’s largest economy grapples with weak revenue collection.