Marketplace Seller Tax From 1 October 2026: PPh 22 Collection Under PMK 37/2025
Expatriates and foreign investors in Indonesia increasingly sell products online, from Bali-made goods to imported items, through local marketplaces. From 1 October 2026 the tax office has started to collect income tax from domestic merchants through the marketplaces themselves, based on Finance Minister Regulation PMK 37/2025 [1].
What is new and what is not
PMK 37/2025 was issued on 11 June 2025 and took effect on promulgation on 14 July 2025, with implementation to follow the readiness of each platform [3]. The Directorate General of Taxes says that collection through marketplaces began on 1 October 2026, after an earlier period that allowed adjustment until 31 October 2026 [1]. The tax authority stresses that this is a collection mechanism, not a new tax [1][4]. Merchants already owed income tax on their sales. The marketplace now collects an advance payment.
Who collects and how much
The tax is PPh Pasal 22 at 0.5% of the merchant's gross turnover, meaning the transaction value on the invoice before discounts, and excluding VAT and luxury goods sales tax [1][3]. According to the press release, four electronic-commerce operators have been designated by a decision of the Director General of Taxes on 24 September 2026: PT Shopee International Indonesia, PT Global Digital Niaga Tbk, PT Tokopedia and PT Ecart Webportal Indonesia [1].
Who is a covered merchant
The collection targets domestic merchants, being individuals or entities that receive income through an Indonesian bank account, or use an Indonesian IP address and telephone number in their trading [3]. A foreign national living in Indonesia who sells through an Indonesian marketplace with an Indonesian bank account can therefore be covered.
The Rp500 million declaration
Individual merchants whose turnover for the current tax year is up to Rp500 million can submit a declaration statement to the marketplace so that the tax is not collected [1][3]. Keep your own turnover records, because the declaration is based on actual annual figures and does not remove other obligations.
How the tax is treated
The amount collected is a tax credit. The press release states that collected PPh 22 can be credited against the merchant's current-year tax or applied toward the final tax payable under existing rules [1]. Merchants should therefore match the marketplace's withholding records with their own books and include the amounts when preparing returns.
The IKPI summary also notes that merchants should prepare electronic tax collection documents under the regulation [2]. Confirm the exact format and timing with the marketplace and your adviser.
Practical checklist
- Check your status. Do you trade through one of the four designated platforms, and do you have an Indonesian bank account?
- Estimate your annual turnover. If you are an individual below Rp500 million and meet the conditions, consider submitting the declaration.
- Keep records. Export the platform's transaction and withholding reports each month.
- Reconcile. Compare collected tax with the amount you report in your SPT and any final tax calculations.
- Check VAT and licensing. A seller that exceeds the VAT threshold must register as a PKP, and the business needs the correct licence for the activity.
- Seek advice on structure. If your online business is run by a PT PMA, the withholding is credited in the company's return, so the accounting treatment should be agreed in advance.
- Watch for updates. Implementation details may be adjusted through further regulations or decisions.