Tax Brief: Minister of Finance Regulation Number 37 of 2025 – Income Tax Collection via Marketplaces
The government has officially issued Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) Number 37 of 2025 concerning the Appointment of Third Parties to Collect Income Tax, and the Procedures for Collecting, Remitting, and Reporting Income Tax on Earnings Received by Domestic Traders Through Electronic Trading Systems.
According to its recital, one of the objectives of the regulation is to broaden public participation in national development through tax contributions, while reinforcing principles of legal certainty, fairness, administrative convenience, and improved efficiency in tax collection.
The regulation is structured into five chapters with 18 articles. The first chapter contains general provisions. Chapter two includes information on the appointment of third-party income tax collectors. Chapter three governs penalties. Chapter four regulates transitional provisions, and chapter five contains concluding provisions.
Appointment of Third-Party Tax Collectors
Essentially, the regulation authorizes the government to appoint other parties (i.e., marketplace and e-commerce platforms) to collect, remit, and report Article 22 income tax on commercial transactions conducted via their platforms.
To qualify, the regulation also stipulates that these third parties must meet certain thresholds, such as having an annual transaction value of a specific amount, and/or having an annual traffic volume surpassing a specified limit, as determined by the Director General of Taxes.
Tax Rates
A noteworthy provision states that if Article 22 income tax is collected from taxpayers who are already subject to final income tax under Article 4(2) or Article 15, the tax withheld can be credited against their final tax liability. Furthermore, if the final tax payable is higher than the Article 22 income tax collected, the domestic trader must pay the income tax underpayment. On the other hand, if the Article 22 income tax collected exceeds the final tax payable, the domestic trader can claim tax refunds for the overpayment that was withheld in a situation where it should not have been.
Exemptions
The regulation outlines several exemptions from Article 22 income tax on e-commerce transactions. These include:
- Sales of goods/services by resident individual taxpayers with a gross turnover of less than IDR 500 million.
- Courier/delivery service sales by resident individual taxpayers partnered with ride-hailing or tech-based platforms.
- Sales of goods/services by domestic traders who hold a valid tax exemption certificate.
- Sales of phone credit and new SIM cards.
- Sales of gold jewelry and gold bullion.
- Transfer of land and building ownership rights.
Collection Documentation
PMK Number 37 of 2025 requires domestic traders to issue invoice documents for each sale, which are treated as equivalent to an Article 22 income tax collection slip. These invoices must include:
- Invoice number and date
- Name of third party
- Domestic trader account name
- Buyer’s name and address
- Description of goods/services sold, price, and any discount
- The Article 22 income tax amount withheld
Remittance and Report
Third parties (e-commerce) are responsible for remitting the Article 22 income tax they collect under applicable provisions. They must also report the Article 22 income tax collection in the unified monthly tax return.
Concluding Provisions
PMK Number 37 of 2025 takes effect on June 11, 2025, the date of its promulgation. Any appointed third-party tax collectors must begin submitting required transaction data within a month of their official designation.
