MoF will appoint more marketplace company as tax collectors

Jakarta (ANTARA) - Indonesian Ministry of Finance (MoF) will gradually designate more marketplace companies as collectors of Article 22 Income Tax (PPh) on sales transactions of goods in their e-commerce platforms, the Finance Minister Purbaya Yudhi Sadewa said here on Thursday.

Currently, the Directorate General of Taxes at the MoF has designated four companies, including Tokopedia, Blibli, Shopee, and Lazada, as marketplace companies that collect Income Tax (PPh) under Article 22 on sales transactions of goods on their platforms. The policy will be effectively conducted on August 1, 2026.

"Yes, there will be more marketplace companies involved. Ultimately, everything will be implemented gradually," Purbaya said.

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Under the new policy, designated marketplaces will collect 0.5 percent income tax under from the seller's gross sales. However, the policy will only apply to merchants who generate a gross annual revenue exceeding Rp500 million.

The government has determined the tax collection process. First, consumers will continue to make their purchases and payments through the e-commerce platform as usual.

The platform will then automatically deduct the 0.5 percent tax from the seller's earnings and issue a formal tax withholding receipt to the merchant.

Finally, the platform is responsible for remitting the collected tax to the state treasury and reporting it via the Unified Periodic Tax Return.

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Previously, Director General of Taxes Bimo Wijayanto emphasised the marketplace tax policy does not constitute a new tax, but rather a change in the collection mechanism to adapt to developments in the digital economy.

According to Wijayanto, the MoF Regulation Number 37 of 2025 merely changes the tax payment mechanism, from the previous system—where sellers paid taxes directly—to one where taxes are collected by government-designated marketplaces.

"So, this is not a new tax. It is a tax on income from business activities conducted through marketplaces. Once again, the only change is in the mechanism; it has shifted from being self-reported by domestic merchants to being collected by designated marketplaces," Bimo said during a press conference in Jakarta on Wednesday (July 1).

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Translator: Bayu Saputra, Uyu Liman

Editor: Fransiska Ninditya

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