Key Takeaways
- PMK 37/2025 appoints major marketplaces as collectors of 0.5% Article 22 income tax on domestic sellers’ gross turnover.
- Collection by major appointed marketplaces is now set to begin 1 November 2026 after delays.
- Sellers with annual turnover of Rp500 million or less may claim exemption via declaration to the tax authority.
- The rule changes collection only; it is not a new tax and aims to improve compliance and level the online-offline field.
- Platforms must verify sellers, withhold at payment, remit monthly and report; already collected amounts will be refunded.
- Businesses face higher compliance needs around data, systems and documentation for digital platform tax compliance Indonesia.
What Does the New Marketplace Tax Withholding Indonesia Require?
Designated platforms must withhold 0.5% of eligible sellers' gross turnover and remit it monthly, while merchants below Rp500 million can claim exemption.
Indonesia's digital economy continues to expand, and the tax authority is bringing marketplace sellers into a structured withholding system. In this guide, we explain how PMK 37/2025 reshapes e-commerce tax collection and what businesses must do to prepare.
Under Minister of Finance Regulation Number 37 of 2025, or PMK 37/2025, designated electronic marketplace operators act as income tax collectors. According to the Directorate General of Taxes (DJP), they withhold Article 22 income tax at 0.5 percent of a domestic merchant's gross turnover from platform transactions, excluding value-added tax and luxury goods sales tax. The withheld amount is remitted monthly to the tax authority and the invoice serves as the withholding slip.
This Indonesia e-commerce tax 2025 framework does not create a new levy. Business income has long been taxable. The change shifts collection from individual self-assessment to platform withholding at the point of sale. Platforms first check whether a seller is subject to the rule based on turnover data.
Sellers whose annual turnover does not exceed Rp500 million can be exempt if they submit the required declaration letter. The threshold covers total turnover across online and offline channels. Certain transactions, such as specific delivery services, gold sales or those already covered by exemption certificates, fall outside the collection duty.
When Does Collection Start and Which Platforms Are Involved?
Collection begins 1 November 2026 with four major e-commerce marketplaces as the first appointed collectors, following delays from the original August target.
The Directorate General of Taxes appointed four major e-commerce marketplaces as initial collectors. Appointment letters were issued around early July 2026, with a short transition window originally pointing to an August start. Collection has since been postponed to 1 November 2026 to support purchasing power.
Any tax already withheld during earlier testing or partial rollout will be refunded. The tax office indicated it may cancel the current appointments and re-issue them closer to the new date. Platforms continue system preparation, seller communication and data verification so the process can run smoothly once live.
The regulation applies to platforms that meet traffic and transaction-value criteria set by the Directorate General of Taxes. Expansion to additional operators remains possible later. Businesses selling through these channels should monitor official notices for the final list and any updated technical guidance.
How Does Digital Platform Tax Compliance Indonesia Affect Sellers and Platforms?
Platforms gain withholding duties and data obligations while sellers receive simplified compliance but need clear records for annual credit claims.
Platforms face new administrative duties under the withholding system, while sellers and pricing dynamics each see distinct effects.
For sellers:
- 0.5 percent is deducted from gross proceeds before funds are transferred
- The automatic deduction can simplify compliance, especially for micro and small enterprises with limited bookkeeping capacity
- Sellers need clear records of turnover, exemption declarations and the ability to claim the withheld tax as a credit in annual returns
For platforms:
- Verifying seller information and maintaining accurate reporting systems are now core obligations
- Larger operators are generally better equipped with existing technology to handle the added workload
- Monthly remittance and information sharing with the Directorate General of Taxes must be coordinated
For pricing and market dynamics:
- Price-sensitive categories may see margin pressure if sellers absorb the amount rather than raise prices
- Some activity could shift toward less-regulated social-commerce channels in the short term, though major marketplaces still offer unmatched reach, logistics and payment tools
We help clients navigate these obligations by reviewing seller data, updating accounting flows and ensuring proper credit claims across digital and traditional sales channels. Overall the policy seeks a fairer environment between online and offline traders while broadening the formal tax base in Indonesia's growing digital economy.
What Should Companies Do to Prepare for Tax Deduction E-Commerce Transactions?
Sellers should map their turnover against the Rp500 million threshold, update NPWP records and build reconciliation processes before the November start.
Companies operating or selling via Indonesian marketplaces should confirm their annual turnover position against the Rp500 million threshold and prepare any exemption declarations early. Accurate transaction data, NPWP details and supporting documents will be essential for both platforms and sellers. Platforms need robust systems for real-time withholding calculations, monthly remittance and information sharing with the Directorate General of Taxes.
Foreign-invested firms and multinationals with local e-commerce activity should review how the withholding interacts with existing corporate income tax filings and any available credits. Businesses should also ensure their registrations under Indonesia's Online Single Submission (OSS) system remain current. Clear internal processes for reconciling platform statements with books will reduce year-end adjustments. Staying updated on Directorate General of Taxes circulars and any re-appointment notices is advisable as the November date approaches.
Professional guidance on Indonesia tax advisory helps map obligations, update accounting flows and maintain compliance across digital and traditional channels. Early preparation supports smoother operations once marketplace tax withholding Indonesia becomes active and reduces the risk of under- or over-collection disputes.
Frequently Asked Questions
No. PMK 37/2025 only changes the collection method for existing Article 22 income tax on business income. The rate and the taxpayer (the merchant) remain the same.
Individual sellers whose total annual turnover is Rp500 million or less can be exempt if they submit the required declaration. The threshold includes all online and offline sales.
Collection is scheduled to begin on 1 November 2026 after earlier delays. Platforms will receive updated appointment notices and must be ready with systems and seller communications.
Yes. The 0.5 percent Article 22 amount can generally be credited against the merchant’s annual income tax liability, and the platform invoice serves as the supporting slip.
Initially yes, for four major e-commerce marketplaces appointed by the Directorate General of Taxes. Additional operators that meet the traffic and transaction criteria can be appointed in future.
