The Indonesian Government has officially begun implementing a new mechanism for collecting Article 22 Income Tax (PPh Pasal 22) through e-commerce platforms starting 1 July 2026. Ahead of the implementation, the Directorate General of Taxes (DJP) confirmed that all technical systems, infrastructure, and marketplace integrations have been completed, following months of intensive coordination with the platforms appointed as tax collectors.
According to the DJP, its systems are fully prepared to integrate with participating marketplaces, allowing tax collection, reporting, and payment to be processed electronically. The initiative forms part of Indonesia’s broader effort to modernise tax administration while improving compliance among online businesses operating through digital marketplaces.
For entrepreneurs, e-commerce sellers, and foreign businesses entering Indonesia’s rapidly expanding digital economy, understanding how this new mechanism works is essential for maintaining tax compliance and planning future business operations.
Why Has Indonesia Introduced Marketplace Tax Collection?
Indonesia’s digital economy continues to experience rapid growth, with millions of transactions taking place every day through online marketplaces. As online commerce expands, the Government aims to create a more efficient, transparent, and integrated tax collection system without introducing a new type of tax.
Rather than requiring individual online sellers to calculate and remit certain tax obligations separately, the Government has appointed selected e-commerce platforms to collect Article 22 Income Tax (PPh Pasal 22) on behalf of eligible domestic sellers.
This mechanism is intended to:
- Improve tax administration efficiency
- Increase voluntary tax compliance
- Simplify reporting for online merchants
- Integrate tax collection into existing marketplace payment systems
- Enhance transparency within Indonesia’s digital commerce ecosystem
Importantly, the Government has emphasised that this policy does not create a new tax. Instead, it changes how existing tax obligations are collected.
Legal Basis for the New Marketplace Tax Mechanism
The implementation is supported by Minister of Finance Regulation (PMK) No. 37 of 2025 concerning:
The Appointment of Other Parties to Collect Income Tax and Procedures for Collecting, Depositing, and Reporting Income Tax on Income Received by Domestic Merchants through Electronic Commerce Systems (PMSE).
The regulation authorises the Directorate General of Taxes (DJP) to appoint marketplace operators as official tax collectors for qualifying transactions.
Which Marketplaces Have Been Appointed?
Effective 1 July 2026, the Directorate General of Taxes has officially designated four major e-commerce platforms as Article 22 Income Tax collectors:
- Tokopedia
- Shopee
- Lazada
- Blibli
The appointment was made by the Director General of Taxes under delegated authority from the Minister of Finance.
Although the policy takes effect from 1 July 2026, the appointed marketplaces have been granted a one-month transition period to complete public education, system adjustments, and operational implementation.
Additional marketplaces may be appointed in the future as Indonesia’s digital tax framework continues to develop.
How Does the New Tax Collection Mechanism Work?
Under the new framework, the marketplace becomes responsible for collecting the applicable tax during each eligible transaction.
The process generally follows these steps:
| Step | Process |
| 1 | The customer purchases goods through the marketplace. |
| 2 | The marketplace collects Article 22 Income Tax from the seller’s income. |
| 3 | An electronic invoice is issued showing the tax collected. |
| 4 | The electronic invoice serves as official proof of tax collection. |
| 5 | The marketplace remits the collected tax to the State Treasury. |
| 6 | The marketplace reports the collection through the Unified Monthly Income Tax Return (SPT Masa Unifikasi). |
This integrated process reduces administrative work for sellers by eliminating the need to produce separate withholding tax certificates for each transaction.
What Is the Applicable Tax Rate?
The marketplace will collect Article 22 Income Tax at a rate of 0.5% of gross turnover generated through the platform.
The tax is calculated excluding VAT (PPN) and Luxury Goods Sales Tax (PPnBM).
Example:
A merchant sells products worth IDR 2,000,000 through a participating marketplace.
| Transaction | Amount |
| Gross sales | IDR 2,000,000 |
| Article 22 Income Tax (0.5%) | IDR 10,000 |
The marketplace will collect IDR 10,000 and remit it directly to the Government.
Importantly, this amount is not an additional standalone tax. It may be credited against the seller’s annual income tax liability, depending on the applicable tax regime.
Is This an Additional Tax?
No. The Government has repeatedly clarified that the marketplace collection mechanism DOES NOT introduce a new tax burden.
Instead:
- taxpayers using the Final Income Tax regime may treat the collected amount as part of their income tax settlement; and
- taxpayers using the general taxation regime may claim the collected Article 22 Income Tax as a tax credit when filing their Annual Income Tax Return (SPT Tahunan).
The objective is to simplify tax administration rather than increase taxation.
Who Is Exempt from Marketplace Tax Collection?
Not every online seller will be subject to Article 22 Income Tax collection through marketplaces.
Current exemptions include:
- Individual taxpayers with annual turnover of up to IDR 500 million, provided they submit the required declaration.
- Courier and delivery services provided by individual domestic taxpayers acting as partners of technology-based application companies.
- 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 products under specific regulations.
- Transfers of land and buildings, including sale and purchase agreements relating to land or property.
Businesses should assess whether they qualify for any exemption before assuming the tax will automatically apply.
What Does This Mean for Foreign Digital Businesses?
Although the policy primarily targets domestic merchants selling through Indonesian marketplaces, it also highlights Indonesia’s continued efforts to strengthen governance across its digital economy. Foreign businesses planning to enter Indonesia through:
- e-commerce platforms,
- online marketplaces,
- Software-as-a-Service (SaaS) businesses,
- mobile applications, or
- digital commerce platforms,
should carefully review their local tax obligations before commencing operations.
Depending on the business model, companies may also need to consider your business compliance regarding:
- PT PMA establishment
- Electronic System Operator (PSE) registration
- Electronic Commerce (PPMSE) licensing
- Indonesian VAT registration
- Corporate tax compliance
- Marketplace tax obligations
Early tax planning can help businesses avoid unnecessary compliance risks as Indonesia’s digital regulatory framework continues to evolve.
Stay Updated on Indonesia’s Digital Business Regulations with Lets Move Indonesia
Indonesia remains one of Southeast Asia’s fastest-growing digital markets, but regulatory requirements are evolving just as quickly. From marketplace tax collection and digital licensing to company incorporation and ongoing corporate compliance, businesses must stay informed to operate confidently and compliantly.
At Lets Move Indonesia, a subsidiary of LMI Consultancy, we help entrepreneurs, foreign investors, SaaS providers, and digital businesses establish and grow their presence in Indonesia through comprehensive business and tax advisory services.
Launching an online business, expanding your digital platform into Indonesia, or seeking guidance on the latest tax regulations, our specialists can help you navigate the country’s evolving regulatory landscape with confidence.
Stay ahead of Indonesia’s latest business and tax developments with Lets Move Indonesia and ensure your digital business remains fully compliant from day one.
