Indonesia’s Directorate General of Taxes (Direktorat Jenderal Pajak or DJP) has postponed the implementation of the marketplace PPh Article 22 collection mechanism to 1 November 2026, delaying the policy from its previously scheduled August commencement.
The decision, announced through Announcement No. PENG-46/PJ.09/2026, concerns the implementation of Minister of Finance Regulation (PMK) No. 37 of 2025. The regulation appoints certain electronic marketplace operators as tax collectors for income earned by domestic sellers through electronic trading platforms.
According to DJP, the postponement is intended to help maintain public purchasing power amid ongoing economic concerns. However, the delay does not change the substance of the tax policy. Designated marketplaces remain responsible for collecting, depositing and reporting PPh Article 22 in accordance with the applicable provisions.
For businesses selling through online marketplaces, the change has important implications for transaction settlements, accounting records and tax reporting. Understanding the collection mechanism is essential to ensuring that marketplace deductions are recorded and reconciled correctly.
Why Did DJP Postpone the Marketplace PPh 22 Collection?
DJP initially scheduled the marketplace PPh Article 22 collection mechanism to begin in August 2026. However, through Announcement No. PENG-46/PJ.09/2026, issued on 5 August 2026, the authority moved the implementation date to 1 November 2026.
The decision was made in consideration of prevailing economic conditions and the government’s objective of maintaining public purchasing power.
DJP also confirmed several administrative measures relating to the postponement:
- Previous decisions appointing marketplaces as PPh Article 22 collectors would be cancelled.
- New appointment decisions would be issued after the postponement period, in accordance with the applicable regulations.
- PPh Article 22 already collected from domestic sellers during the transition period would be returned to the respective sellers through the relevant marketplace platforms.
Importantly, the postponement concerns the implementation schedule rather than the substance of the regulation. The marketplace collection mechanism under PMK 37/2025 remains in place and commenced on 1 November 2026.
What Is PMK 37/2025 and How Does It Affect Online Sellers?
PMK No. 37 of 2025 establishes the appointment of certain parties as income tax collectors for domestic merchants conducting transactions through electronic trading systems.
Under this regulation, designated marketplaces collect PPh Article 22 at 0.5% of qualifying gross turnover when they receive payment from buyers.
The mechanism shifts part of the tax collection responsibility from individual sellers to the appointed marketplace operators.
For businesses, this means that marketplace payouts may include an automatic PPh Article 22 deduction. Sellers must therefore ensure that these deductions are properly recorded and reconciled with their accounting and tax records.
What Changes Under the New PPh 22 Collection Mechanism?
| Area | Previous approach | Under PMK 37/2025 |
| PPh 22 collection | Sellers generally handled their applicable income tax obligations themselves. | Designated marketplaces collect PPh 22 from qualifying transactions. |
| Collection rate | No marketplace-specific collection mechanism. | 0.5% of gross turnover. |
| Calculation base | Based on the seller’s applicable tax obligations. | Gross turnover before sales discounts, excluding VAT and PPnBM. |
| Collection timing | Tax payment followed the seller’s applicable tax mechanism. | Collected when the marketplace receives payment from the buyer. |
| Marketplace responsibility | Mainly facilitates transactions. | Collects, deposits and reports PPh 22. |
| Proof of collection | Sellers rely on applicable tax payment or withholding documents. | Marketplace invoices can serve as evidence of collection. |
The main operational change is that sellers may receive lower net settlements because PPh Article 22 is deducted automatically from qualifying transactions. These deductions must be accounted for correctly to avoid discrepancies in financial statements and tax reporting.
For further background, read our previous article: New E-Commerce Tax Collection Mechanism for Online Sellers.
Which Marketplace Sellers Are Affected by PMK 37/2025?
The regulation applies to domestic marketplace sellers, including individuals and companies, that earn income through designated electronic trading platforms.
The main groups affected include:
1. Corporate Sellers
Companies selling goods or services through designated marketplaces may be subject to the 0.5% PPh Article 22 collection on qualifying transactions.
2. Individual Sellers with Annual Turnover Above IDR 500 Million
Individual sellers whose annual turnover exceeds IDR 500 million may be subject to marketplace PPh Article 22 collection.
The applicable exemption arrangements should be reviewed carefully. Individual sellers who meet the relevant requirements and submit the required turnover declaration may qualify for an exemption from collection.
3. Individual Sellers with Annual Turnover of Up to IDR 500 Million
Individual sellers with annual turnover of up to IDR 500 million may qualify for an exemption from marketplace collection, provided they meet the applicable conditions and submit the required declaration to the marketplace.
4. Sellers Holding a Tax Exemption Certificate (SKB)
Sellers with an applicable Surat Keterangan Bebas (SKB) may be exempt from marketplace collection if the certificate is submitted to the relevant marketplace and meets the applicable requirements.
An exemption from marketplace PPh Article 22 collection does not automatically mean that the seller’s income is exempt from income tax. Other tax obligations may still apply depending on the seller’s circumstances and tax position.
Transactions Excluded from Marketplace Collection
Certain transactions are excluded from the marketplace collection mechanism under the applicable provisions. These include specified:
- Delivery services.
- Prepaid mobile products.
- Gold and jewellery transactions.
- Land and building transactions.
Businesses should review the relevant regulatory provisions to determine whether their products and transactions qualify for an exclusion.
How Is Marketplace PPh 22 Calculated?
Under PMK 37/2025, the marketplace PPh Article 22 collection is calculated using the following formula:
Gross turnover before discounts, excluding VAT and PPnBM × 0.5% = PPh Article 22
The calculation is based on gross turnover before sales discounts. Marketplace fees and similar deductions do not reduce the calculation base.
For example, if a qualifying seller records gross turnover of IDR 100 million, excluding VAT and PPnBM, the illustrative PPh Article 22 collection would be:
| Description | Amount |
| Gross turnover | IDR 100,000,000 |
| PPh 22 collection rate | 0.5% |
| PPh 22 collected | IDR 500,000 |
The actual tax treatment depends on the seller’s eligibility, applicable exemptions and tax position.
How Should Sellers Reconcile Marketplace PPh 22?
The introduction of automatic tax collection makes accurate accounting and reconciliation increasingly important.
Sellers should be able to trace the relationship between gross sales, deductions and final marketplace settlements.
A practical reconciliation structure is:
Gross sales → Discounts and refunds → VAT → Marketplace fees → PPh 22 collected → Net settlement
Each component should be recorded separately to ensure that marketplace transaction reports, accounting records, bank settlements and tax reporting remain consistent.
What Should Sellers Record?
Businesses should ensure that their accounting and tax records include:
- Gross sales that match marketplace transaction records.
- Discounts, refunds and cancellations, supported by relevant documentation.
- VAT, where applicable, recorded separately.
- Marketplace fees distinguished from sales revenue.
- PPh Article 22 collected, recorded according to the seller’s applicable tax treatment.
- Marketplace invoices and correction documents retained as supporting tax records.
- Net settlements that can be traced back to the underlying transactions.
Depending on the seller’s tax position, the amount collected may be treated as a tax credit or form part of the final income tax settlement, as applicable.
Although the marketplace handles the collection mechanism, sellers remain responsible for maintaining accurate accounting records and fulfilling their tax reporting obligations.
What Happens If Marketplace and Tax Records Do Not Match?
Discrepancies between marketplace transaction data, accounting records and tax reporting can create compliance and financial risks.
Common issues include:
- Missed tax credits: PPh Article 22 deductions may not be properly recognised or supported by the necessary documentation.
- Incorrect tax treatment: Businesses may record marketplace deductions incorrectly, affecting their tax calculations.
- Reporting discrepancies: Differences between marketplace reports and accounting records may lead to inconsistencies in tax returns.
- Difficult reconciliation: Businesses may struggle to trace individual deductions, refunds or settlements.
- Increased administrative workload: High transaction volumes and multiple marketplace accounts can make manual reconciliation more complicated.
These risks are particularly relevant to businesses operating across several online platforms or processing a large number of transactions each month.
What Should Businesses Prepare Under the New Marketplace Tax Mechanism?
With the collection mechanism in effect from 1 November 2026, marketplace sellers should review their existing tax and accounting processes to ensure they can accommodate the new deductions.
Key preparation areas include:
- Confirm whether the marketplace tax applies: Review your business activities, transactions and eligibility for any applicable exemption.
- Check your tax identification information: Ensure your NPWP or NIK and other tax details registered with the marketplace are accurate.
- Review exemption documentation: Prepare and submit any required turnover declarations or SKB certificates, where applicable.
- Update accounting procedures: Ensure that PPh Article 22 deductions are recorded separately from marketplace fees, VAT and other transaction adjustments.
- Reconcile marketplace settlements: Compare gross sales, refunds, discounts, tax deductions and net payouts against your accounting records.
- Review tax reporting procedures: Determine how marketplace collections should be reflected in monthly and annual tax reporting.
- Retain supporting documents: Keep marketplace invoices, collection records and correction documents for future reconciliation and tax compliance purposes.
Businesses with complex marketplace operations may also benefit from reviewing their existing accounting systems and tax procedures to identify areas that require adjustment.
Frequently Asked Questions About Marketplace PPh 22
1. When did marketplace PPh Article 22 collection begin?
Under DJP Announcement No. PENG-46/PJ.09/2026, the marketplace PPh Article 22 collection mechanism commenced on 1 November 2026, following a postponement from the previously scheduled August 2026 implementation.
2. What is the PPh Article 22 rate for marketplace sellers?
The collection rate under PMK 37/2025 is 0.5% of qualifying gross turnover before discounts, excluding VAT and PPnBM.
3. Does marketplace PPh Article 22 apply to individual sellers?
Yes, it may apply to individual sellers conducting transactions through designated marketplaces. However, individuals with annual turnover of up to IDR 500 million may qualify for an exemption if they meet the relevant conditions and submit the required declaration.
4. Are sellers with an SKB exempt from marketplace PPh Article 22?
An applicable Surat Keterangan Bebas (SKB) may provide an exemption from marketplace collection if it is submitted to the marketplace and meets the relevant requirements.
5. Does marketplace PPh Article 22 replace all other tax obligations?
No. The marketplace collection mechanism does not remove the seller’s other tax responsibilities. Sellers must continue to assess their applicable income tax, VAT and tax reporting obligations according to their circumstances.
6. What happens to PPh Article 22 collected during the postponement period?
According to DJP’s announcement, PPh Article 22 already collected from domestic sellers during the transition period would be returned to the respective sellers through the relevant marketplace platforms.
7. Do marketplace sellers still need to maintain their accounting records?
Yes. Sellers remain responsible for maintaining accurate records of gross sales, discounts, refunds, VAT, marketplace fees, PPh Article 22 deductions and net settlements. These records are necessary for accounting reconciliation and tax reporting.
8. Can Lets Move Indonesia help businesses with marketplace tax compliance?
Yes. Lets Move Indonesia provides tax consultation, preparation and assistance to help businesses understand their tax obligations, review marketplace deductions, reconcile accounting records and prepare for relevant tax reporting requirements.
How Can Lets Move Indonesia Help with Marketplace PPh 22 Compliance?
The introduction of marketplace PPh Article 22 collection adds another layer to Indonesia’s tax compliance requirements for online businesses.
While designated marketplaces are responsible for collecting, depositing and reporting the tax, sellers must still ensure that their financial records, tax credits and reporting obligations are properly managed.
Lets Move Indonesia provides professional tax consultation, preparation and assistance for businesses and individuals operating in Indonesia.
Our tax team can help businesses navigate the marketplace PPh Article 22 mechanism and reduce administrative errors and improve the accuracy of financial reporting.
Contact Lets Move Indonesia for professional Tax Consultation, Preparation and Assistance. Our team can help you understand your obligations under Indonesia’s marketplace tax regulations and manage your business tax compliance with greater confidence.
