TikTok to Comply with Social Commerce Tax

TikTok to comply with Tax by paying taxes to support the social economy. TikTok Indonesia has expressed its support for the government’s plan to impose taxes on social commerce shopping transactions. The move comes in the wake of the revision of MOT 50/2020 on Provisions for Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Electronic Commerce that will regulate the application of taxes on shopping transactions through social commerce platforms such as TikTok.

When asked about their views on the revision of the Minister of Trade’s regulation, TikTok Indonesia’s Head of Communications, Anggini Setiawan, emphatically stated that TikTok welcomes the government’s move. TikTok is committed to supporting fairer and more orderly regulatory policies, and strives to contribute positively to supporting the progress of the national economy. This was revealed by Anggini Setiawan during a press conference in Jakarta on July 26, 2023.

As a widely recognized social commerce platform, TikTok recognizes its responsibility to operate in accordance with applicable regulations and rules. With the application of taxes on shopping transactions through this platform, TikTok will comply and carry out tax obligations properly and correctly.

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Through the implementation of this policy, it is expected to help encourage economic development in Indonesia. INDEF’s Digital Economy Researcher, Nailul Huda, stated that the tax policy on social commerce has the potential to reduce the number of local sellers marketing imported products in the country. Thus, this policy can provide more opportunities for local sellers to develop and support domestic economic growth. [Source: Kompas]

TikTok to Comply with Tax for Contributing Sustainable Economic

TikTok Indonesia welcomes these changes as a form of corporate social responsibility to contribute to sustainable economic development. TikTok’s support of this government regulation demonstrates the company’s commitment to operating transparently and providing benefits to the wider community.

TikTok users in Indonesia can take this step as a positive momentum to continue participating in shopping through social commerce platforms with full trust. Through compliance with tax regulations, it is hoped that the social commerce ecosystem will grow and make a positive contribution to the country’s economic growth.

TikTok Indonesia will continue to monitor developments related to tax regulations and rules, and is committed to always adapting and contributing to the progress of social commerce and the Indonesian economy as a whole. With collaboration and mutual awareness, we can create a stronger and more competitive business ecosystem in this digital era.

Yustika Nindy Ferdiani