Jakarta, Monday, April 14 2016.Menanggapi Government's plan to impose a tax free of charge to some e-commerce business model, founder KASKUS which is also one of the Supervisory Board of E-Commerce Association of Indonesia (IDEA) - Andrew Dervish revealed that greatly impact the tax rules for continuity of the company and industry e-commercepada general. Tax rules can create an e-business model commerceberkembang or even make it die in his own country.

Value Added Tax (VAT) free of charge in question is intended for several business models like e-commerce and online classified ads marketplace that most of its services can be enjoyed by the user community for free. For users who want more service can choose a paid premium service. The business model is often known as the freemium concept is often used as a mainstay for businesses in the digital realm, which is generally favorable to the user. But it is suspected there was a misinterpretation of the government equate this free service with the distribution of free samples that legally had to be taxed.

Basically, the imposition of VAT free of charge to business e-commerceharus seen deeper than revenueatau business model of each jenise-commerce. Kategorie-commerce even in the same matter, the tax authorities need to see more details about revenueatau business model so as to understand what is right should be subject to VAT free gift, which do not.

"We believe that the tax rules in Indonesia is changing towards the better, just need to be considered in designing the tax rules that the tax was made not to complicate or shut down existing business, but should be able to support the course of a business."

"During this time Kaskus have to pay taxes in accordance with applicable law. Basically we support the Government's plans on tax matters, as long as the rules are not made just to get a higher tax revenues without looking deeper into the existing business conditions. It is also necessary foresight to give equality of treatment to all businesses, and to ensure the execution conducted fairly, "he concluded.

 
about IDEA

E-commerce Association of Indonesia which was formed in May 2012 an institution for the e-commerce industry players this country to interact with fellow players and also the government. Currently a member of the association includes more than 180 players from online retail category, market place, daily deals, classified ad, price comparison, travel, payment systems, logistics, and several related strategic partner. IDEA has a vision of making Indonesia as a state-based digital economy through a partnership with the partners in the country that can contribute to realizing the growth of e-commerce Indonesia, while continuing to hold a program of education and socialization about this industry.


For further information, please contact:

Ayu Indirawanty

Secretary General Idea

+62 21 2550 2625

ayu@idea.or.id