2026.08.06 Indonesia Halts E-Commerce Withholding Tax
01. Indonesia Halts E-Commerce Withholding Tax Until November 2026
On August 5, Indonesian Finance Minister Purbaya Yudhi Sadewa announced a suspension of the e-commerce income tax withholding policy that was scheduled to take effect on August 1. Under Ministry of Finance Regulation No. 37/2025, platforms including Tokopedia, Shopee, Lazada, and Blibli were required to withhold a 0.5% prepaid income tax from sellers with annual turnover exceeding IDR 500 million. The minister said the policy will be postponed until economic conditions and household purchasing power improve. The tax authority had already given platforms a one-month system transition period, but all implementation is now frozen. The withholding requirement is rescheduled to take effect on November 1, 2026. For cross-border sellers, this provides temporary cash-flow relief, but they should use the time to prepare tax compliance and documentation.
02. Vietnam's Major E-Commerce Platforms Post 44% H1 Sales Growth
According to a report by Metric, Vietnam's four largest e-commerce platforms generated a combined VND 291.6 trillion in sales during the first half of 2026, up 44.11% year on year. Apple led brand rankings with VND 403.5 billion in sales, followed by Samsung with VND 293.8 billion — the fastest-growing brand in the top ten at 142.48%. Xiaomi ranked third with VND 150.6 billion, up 81.24%. The top-ten list also featured FMCG and beauty brands such as Vinamilk, L'Oréal, and Cocoon, reflecting broader category diversification. Phone and tablet sales jumped 118.16%, as tech brands increase investment in live streaming and official flagship stores. Cross-border sellers should note the accelerating shift toward digital consumption and platform-driven brand building in Vietnam.
03. Thailand's E-Commerce Market Targets US$60 Billion in Five Years
Thailand's e-commerce market is projected to reach US$60 billion within the next five years, underscoring the country's ambition to become a leading digital economy in Southeast Asia. The growth outlook is supported by rising internet penetration, widespread adoption of digital payments, and the rapid expansion of social commerce and live-streaming sales. As consumer behavior shifts decisively online, global brands and cross-border sellers are expected to increase their presence on local platforms, leveraging localized content and logistics partnerships to capture demand beyond Bangkok. For sellers looking to diversify in the region, Thailand offers a promising expansion opportunity, particularly in categories such as beauty, personal care, and consumer electronics, where online spending is climbing quickly.
04. Philippine Customs Seizes Misdeclared Fireworks from China
On August 4, Philippine Customs inspectors at Manila port seized two container shipments from China that were falsely declared to conceal fireworks. One container was declared as "shelves" and the consignee had already abandoned the cargo; the other was declared as "ceramic cups." Each shipment was valued at around PHP 20 million, with a combined value of approximately RMB 4.7 million. Under Philippine law RA 7183, fireworks are prohibited import items. The seized goods will be destroyed, and authorities have launched a follow-up investigation, with the customs commissioner personally overseeing the inspection. The case serves as a warning to cross-border sellers: misdeclaring prohibited goods can result in confiscation, legal investigation, and serious damage to an exporter's credibility.