Regulation Watch · Tax Compliance · Indonesia, for domestic merchants selling goods or services through a marketplace designated by the Directorate General of Taxes, including PT PMA and PT PMDN sellers and Indonesian individual businesses.
Four Marketplaces Start Withholding Seller Income Tax
From 1 October 2026, Blibli, Lazada, Shopee and Tokopedia collect 0.5% PPh Article 22 from covered domestic sellers under PMK 37/2025, with document-based exemptions for qualifying small individual businesses and other excluded transactions.
- Published
- PMK 37/2025 was established on 11 June and promulgated on 14 July 2025 in State Bulletin 2025 No. 489. PER-15/PJ/2025 was established on 5 August 2025. DJP issued the four marketplace designation decisions on 24 September 2026 and published the confirmed operational start on 1 October 2026.
- Effective
- PMK 37/2025 has been effective since 14 July 2025. For PT Global Digital Niaga Tbk (Blibli), PT Shopee International Indonesia, PT Tokopedia and PT Ecart Webportal Indonesia (Lazada), collection began on 1 October 2026.
- Added to Watch
- 2 October 2026
Who is affected
Domestic merchants selling through Blibli, Lazada, Shopee or Tokopedia, including PT PMA and PT PMDN companies, Indonesian individual entrepreneurs and UMKM sellers; the four designated marketplace operators; directors; and tax, finance, accounting, treasury, e-commerce and seller-operations teams.
Practical impact
Each designated marketplace now collects PPh Article 22 when it receives payment for a covered domestic merchant transaction. The amount is 0.5% of gross turnover shown on the billing document, excluding VAT and luxury-goods sales tax. The collection is not a new tax: it may be credited against current-year income tax or treated as part of the settlement of final income tax, depending on the seller's tax regime. An individual seller whose annual gross turnover does not exceed Rp500 million avoids collection only after submitting the prescribed declaration. Sellers with a valid withholding or collection exemption certificate and specified excluded transactions must also provide the required evidence through the marketplace process.
PMK 37/2025 was established on 11 June 2025, promulgated on 14 July in State Bulletin No. 489 and became effective on promulgation. PER-15/PJ/2025, established on 5 August 2025, sets the criteria and designation mechanism for marketplace operators. DJP designated Blibli, Shopee, Tokopedia and Lazada on 24 September 2026 and confirmed on 1 October that those four platforms had begun collection that day, replacing the previously communicated adjustment period through 31 October.
The operational change applies when a designated marketplace receives payment for a covered sale by a domestic merchant. The platform collects PPh Article 22 at 0.5% of the gross turnover shown on the billing document, excluding VAT and luxury-goods sales tax, before paying the balance to the seller. It is a collection method for an existing income-tax obligation rather than a new levy on buyers or a new tax category for sellers.
Corporate and individual sellers should not treat the collected amount identically without checking their tax regime. It can be credited as a current-year income-tax payment or become part of the settlement of final income tax. The marketplace billing document can serve as withholding evidence, so the merchant identity and registered NPWP or NIK on the account and document should match DJP records and the seller's books.
The small-business relief requires action. An Indonesian individual taxpayer whose annual gross turnover does not exceed Rp500 million is not collected only after giving the marketplace the declaration prescribed by PMK 37/2025. The rule does not extend that threshold relief to a corporate seller. A merchant with a valid SKB must likewise provide the certificate, while specified excluded transactions require their own supporting classification and evidence.
The exclusions include specified app-based delivery or expedition services supplied by Indonesian individual partners, prepaid telephone credit and starter-card sales, SKB-covered transactions, and other categories listed in the regulation. An exclusion from marketplace collection does not necessarily extinguish the underlying income-tax treatment, so finance teams should map the transaction to the correct ordinary withholding, payment and reporting rule instead of treating it as tax-free.
For affected sellers, the immediate control is settlement reconciliation. Each platform report should be tied to the sales invoice, gross amount, VAT or luxury-tax component, PPh Article 22 withheld, net payout and bank receipt. The accounting and tax return must then use the collected amount correctly and avoid a duplicate self-payment. Incorrect collection, missing evidence or identity mismatches should be raised with the platform quickly and preserved in the audit file.
Required action
- Confirm whether each selling account is on Blibli, Lazada, Shopee or Tokopedia and identify the legal merchant, NPWP or registered NIK, correspondence address and applicable income-tax regime for that account.
- Upload accurate tax identity data through the marketplace. An eligible individual seller with annual gross turnover up to Rp500 million should submit the prescribed turnover declaration before the platform processes covered payments; a seller relying on an SKB should submit the valid certificate.
- Map excluded transaction types and supporting documents, including qualifying app-based individual delivery services, prepaid telephone credit or starter cards, transactions covered by an SKB, and other exclusions in PMK 37/2025, rather than assuming that every marketplace receipt is subject to collection.
- Reconcile each marketplace billing document, gross turnover, VAT or luxury-tax component, PPh Article 22 withheld and net settlement to the sales ledger and bank receipt, and retain the document as withholding evidence.
- Apply the collected amount correctly in the monthly or annual tax position as a credit or part of final-income-tax settlement, and avoid paying the same liability again through the former self-payment workflow.
- Update cash-flow forecasts, seller pricing controls and accounting integrations for the lower settlement amount from 1 October, and investigate any collection made against a valid exemption or excluded transaction promptly with the marketplace.