The taxation of merchants selling through online marketplaces has created various responses. Small-scale sellers and those just starting out in the marketplace have raised concerns about whether they will be affected by withholding or imposition of income tax on sales made through online marketplaces.
The provisions for this tax collection are set out in Minister of Finance Regulation Number 37 of 2025 (PMK-37/2025). Under this regulation, the government designates third parties as income tax collectors, responsible for collecting, remitting, and reporting taxes on the income received or earned by domestic sellers through electronic commerce (PMSE).
The tax in question is Article 22 income tax (PPh Pasal 22), imposed at 0.5% of the gross turnover received or earned by a domestic seller, as stated in the billing document. This tax base excludes value added tax (VAT) and luxury goods sales tax (PPnBM). To date, four marketplaces have been appointed as tax collectors: Shopee, Blibli, Lazada, and Tokopedia.
According to the Announcement issued by the Director of Outreach, Services, and Public Relations (Number PENG-46/PJ.09/2026), the implementation of the Article 22 income tax collection has been postponed until November 1, 2026. This postponement is intended to safeguard public purchasing power amid ongoing economic concerns. PMK-37/2025 outlines several categories of transactions or sellers exempt from Article 22 income tax collection.
These include domestic individual sellers with an annual turnover of no more than IDR 500 million in the current fiscal year who have submitted the required statement, sellers providing delivery or expedition services as partners to technology-based transportation application companies, and sellers who provide a certificate of exemption from income tax withholding or collection (surat keterangan bebas/SKB).
Exemptions also apply to transactions involving mobile phone credit and starter SIM cards, gold jewelry, gold bars, jewelry made from non-gold materials, gemstones, and similar stones sold by parties meeting the specified requirements, and transfers of rights to land or buildings, including binding sale and purchase agreements and any amendments to those agreements.
Individual sellers need to understand the difference between a formal statement (surat pernyataan) and a tax exemption certificate. Individual sellers with annual turnover below IDR 500 million who qualify for the exemption must submit a statement declaring that their current-year turnover does not exceed IDR 500 million. The format of this statement must follow the requirements provided in the appendix of PMK-37/2025.
Therefore, sellers with annual turnover of up to IDR 500 million are not required to apply for a tax exemption certificate solely to qualify for a tax exemption. A formal statement regarding their turnover is sufficient. However, if sellers already have a previously issued tax exemption certificate, they must submit it to the marketplace so the exemption can be applied in accordance with the regulations.
Enforcing taxes through marketplaces aims to improve the efficiency and effectiveness of tax collection. This mechanism helps merchants meet their tax obligations, as the marketplace collects the tax automatically and eliminates the need to generate their own tax payment billing codes. Furthermore, this policy is expected to provide legal certainty, fairness, convenience, and simplicity in administrative processes, while encouraging public participation in supporting national development through tax payments.
Also Read:
Marketplace Begins Collecting Article 22 Income Tax on Oct. 1
Marketplace Tax to Take Effect in November, Here's How It Works
Reconsidering Marketplace Taxation: Withholding Tax vs Information Sharing
Writer: Fiorentina Renata Trixie | Editor: Thomas Rizal
