e-commerce tax must be deducted

While the government is preparing an income tax bill, an expert has suggested that the taxes from e-commerce activities should be deducted at the payment gateway to assure fairness for both the government and businesspeople.

In the current bill, which is being discussed by the government, e-commerce transactions must be reported so that the government can calculate the amount of tax that should be paid from the transactions.

However, Center for Indonesia Taxation Analysis (CITA) executive director Yustinus Prastowo said on Thursday the government could not collect taxes based on the transactions that had been made because not all transactions ended with payment.

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