The Directorate General of Taxes (DJP) will begin implementing the collection of Income Tax Article 22 (PPh Pasal 22) on income received by domestic merchants through designated online marketplaces on 1 November 2026. The implementation follows the end of the postponement period on 31 October 2026.
The mechanism is regulated under Minister of Finance Regulation No. 37/2025 (PMK 37/2025), which provides for designated electronic trading system operators to collect, pay, and report PPh Article 22 on income earned by domestic merchants through marketplace transactions.
Under the regulation, designated marketplaces will collect PPh Article 22 at 0.5% of gross turnover from applicable sellers. The transaction value used for the calculation excludes Value Added Tax (VAT) and Luxury Goods Sales Tax. DJP has stated that PMK 37/2025 does not introduce a new tax, but changes the mechanism through which existing income tax obligations are collected.
For individual taxpayers with annual gross turnover of up to IDR 500 million, the collection does not apply if the required declaration is submitted to the marketplace. Domestic merchants are also required to provide information including their tax identification number or national identification number and correspondence address to the designated platform.
DJP previously designated Blibli, Shopee, Tokopedia, and Lazada as marketplace operators responsible for the collection. The earlier designation decisions are to be cancelled following the postponement, with the platforms to be reappointed before implementation.
Director General of Taxes Bimo Wijayanto confirmed on 18 September that the collection is scheduled to begin on 1 November, following the end of the postponement period. He said implementation would proceed in line with the readiness of the respective platforms, as quoted by Antara.
