2026.08.06 Indonesia Halts E-Commerce Withholding Tax, Postpones 0.5% Policy
Indonesia Halts E-Commerce Withholding Tax, Postpones 0.5% Policy
Indonesian Finance Minister Purbaya Yudhi Sadewa announced on August 5th that the withholding income tax policy for e-commerce platforms, originally scheduled to take effect on August 1st, has been temporarily suspended. Based on Ministry of Finance Regulation No. 37/2025, the policy required platforms like Tokopedia, Shopee, Lazada, and Blibli to withhold 0.5% prepaid income tax from sellers with annual turnover exceeding IDR 500 million. The Minister stated that implementation will only proceed once economic conditions and consumer purchasing power show significant improvement. The Directorate General of Taxes had previously granted the four major platforms a one-month technical transition period, which is now frozen. The official announcement confirms the withholding policy will be postponed until November 1, 2026. For cross-border sellers, this provides temporary tax relief and more time for compliance preparation.
Vietnam E-Commerce Reaches Nearly VND 292 Trillion in First Half
According to Metric's report, total sales from Vietnam's four major e-commerce platforms reached VND 291.6 trillion in the first half of 2026, a year-on-year increase of 44.11%. Apple led brand rankings with VND 403.5 billion, followed by Samsung at VND 293.8 billion with an impressive 142.48% growth rate, the fastest among the top ten. Xiaomi secured third place with VND 150.6 billion, growing 81.24%. The top ten list also featured four FMCG and beauty brands, including Vinamilk, L'Oréal, and Cocoon, highlighting category diversification. The phone and tablet category saw a remarkable 118.16% sales surge, reflecting tech brands' increasing investment in live-streaming commerce and official flagship stores, accelerating digital consumption penetration.
Thailand E-Commerce Targets $60 Billion Market in Five Years
Thailand's e-commerce sector is projected to reach $60 billion within the next five years, driven by rapid digital adoption and government support for the digital economy. The growth trajectory is supported by expanding internet penetration, improved logistics infrastructure, and increasing consumer preference for online shopping. Key drivers include the rise of social commerce, live-streaming sales, and cross-border trade facilitation. The Thai government has been actively promoting digital payment systems and e-commerce regulations to create a favorable business environment. For cross-border sellers, this presents significant opportunities to enter one of Southeast Asia's fastest-growing markets, particularly in categories such as electronics, fashion, health products, and local specialties. Strategic positioning now could yield substantial returns as the market expands.
Philippine Customs Seizes Illegal Fireworks Shipments from China
On August 4th, Philippine Customs at Manila Port intercepted two containers of fireworks illegally imported from China through false declarations. One container declared as "shelving units" was abandoned by the consignee, while another declared as "ceramic cups" held goods valued at approximately PHP 20 million each, totaling around RMB 4.7 million. Under Philippine law RA 7183, fireworks are prohibited import items, and the confiscated goods have been turned over for investigation and destruction. The Customs Commissioner personally led the inspection, and the case has entered follow-up proceedings. This seizure serves as a critical warning for exporters to ensure accurate declarations, as misdeclaring prohibited items can result in confiscation, legal investigations, and severe reputational damage.