Indonesia has officially introduced a new mechanism for collecting Article 22 Income Tax (PPh Pasal 22) on online marketplace transactions, effective 1 July 2026. Under the new framework, selected e-commerce platforms are appointed by the Directorate General of Taxes (DJP) to collect income tax directly from eligible domestic merchants selling through their platforms.
Understanding Indonesia’s New Marketplace Tax Collection Policy
Ahead of the implementation, the DJP confirmed that its systems and infrastructure have been fully integrated with participating marketplaces following extensive coordination conducted over recent months. The initiative forms part of the Government’s broader strategy to modernise Indonesia’s tax administration while improving compliance within the country’s rapidly expanding digital economy.
The rapid expansion of Indonesia’s digital economy has transformed how businesses engage with consumers. Millions of transactions are now completed daily through online marketplaces, prompting the Government to introduce a more streamlined and transparent method of collecting existing tax obligations.
Rather than imposing a new tax on online sellers, the new policy changes how Article 22 Income Tax is collected. Eligible e-commerce platforms will now act as tax collectors, deducting the applicable tax during the transaction process before remitting it to the Government.
Furthermore, the Government has emphasised that the policy does not introduce an additional tax burden. Instead, it simplifies the collection of existing tax obligations.
According to the Directorate General of Taxes, the objectives of the policy include:
- Improving tax administration efficiency
- Increasing taxpayer compliance within the digital economy
- Simplifying tax collection for online merchants
- Enhancing transparency across Indonesia’s e-commerce ecosystem
- Integrating marketplace transactions into Indonesia’s digital tax infrastructure
Legal Basis for the New Regulation
The implementation is supported by Minister of Finance Regulation (PMK) No. 37 of 2025 concerning the appointment of third parties to collect Article 22 Income Tax on income earned by domestic merchants through Electronic Commerce Systems (PMSE).
The regulation authorises the Directorate General of Taxes (DJP) to appoint eligible marketplace operators to collect, deposit, and report Article 22 Income Tax on behalf of online sellers.
Which Marketplaces Have Been Appointed?
Effective from 1 July 2026, four major e-commerce platforms have officially been designated as Article 22 Income Tax collectors:
- Tokopedia
- Shopee
- Lazada
- Blibli
The appointments were made by the Director General of Taxes under delegated authority from the Minister of Finance.
Important notes: Although the regulation became effective on 1 July 2026, the appointed platforms have been granted a one-month adjustment period to complete system implementation, merchant education, and operational readiness. Additional marketplaces may be designated as Indonesia continues expanding its digital tax framework.
How Does the New Marketplace Tax Mechanism Work?
The new process integrates tax collection directly into the payment workflow.
The mechanism generally follows these steps:
- Customers complete purchases through an appointed marketplace.
- The marketplace calculates and collects Article 22 Income Tax from the seller’s transaction.
- An electronic invoice is issued showing the amount of tax collected.
- The invoice serves as official evidence of tax collection.
- The marketplace remits the tax to the State Treasury.
- The marketplace reports the collected tax through the Unified Monthly Income Tax Return (SPT Masa Unifikasi).
By integrating these procedures into existing payment systems, sellers no longer need to prepare separate withholding tax documentation for each eligible transaction.
Article 22 Income Tax Rate
The applicable tax rate is 0.5% of the seller’s gross turnover generated through participating marketplaces. The calculation excludes:
- Value Added Tax (VAT/PPN)
- Luxury Goods Sales Tax (PPnBM)
Illustration
| Transaction | Amount |
| Gross Sales | IDR 2,000,000 |
| Article 22 Income Tax (0.5%) | IDR 10,000 |
In this example, the marketplace collects IDR 10,000 before remitting it to the Government.
Importantly, this amount does not represent an additional tax liability.
Can the Tax Be Credited?
Yes. The Article 22 Income Tax collected by the marketplace can generally be credited against the merchant’s annual income tax obligations.
Depending on the taxpayer’s regime:
- Businesses subject to the Final Income Tax regime may treat the amount as part of their final tax settlement.
- Businesses using the general corporate income tax regime may credit the collected tax when filing their Annual Income Tax Return (SPT Tahunan).
This ensures that the marketplace collection functions as a prepayment mechanism rather than creating double taxation.
Who Is Exempt from Marketplace Tax Collection?
Not every online merchant falls within the scope of the new mechanism.
Current exemptions include:
- Individual taxpayers with annual turnover of up to IDR 500 million, provided the required declaration is submitted.
- Domestic courier and delivery services acting as partners of technology platforms.
- Merchants holding a valid tax exemption certificate (Surat Keterangan Bebas).
- Sales of prepaid mobile credit and SIM cards.
- Certain transactions involving jewellery, bullion, gemstones, and similar assets under applicable regulations.
- Transfers of land and buildings, including property sale agreements.
Businesses should review their tax status carefully to determine whether they qualify for these exemptions.
Effects for Foreign Investors and Digital Businesses
Although the new mechanism primarily applies to domestic merchants operating through Indonesian marketplaces, it also reflects the Government’s continued efforts to strengthen compliance across the country’s digital economy.
Foreign investors planning to establish digital businesses in Indonesia should ensure that both their corporate structure and tax compliance framework are properly established before commencing operations.
Depending on the nature of the business, companies may also need to consider the following compliance:
- Establishing a PT PMA (Foreign-Owned Company)
- Business Identification Number (NIB)
- Electronic System Operator (PSE) registration
- Electronic Commerce (PPMSE) licensing
- Corporate tax registration
- VAT registration where applicable
- Ongoing corporate and tax compliance
Businesses expanding into Indonesia’s digital market should view tax planning as an integral component of market entry rather than a post-launch obligation.
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