Digital Nomad

How ASEAN Digital Sellers Should Adjust to Indonesia’s New Withholding Regime on Marketplaces

As of August 1, 2026, major Indonesian marketplaces now collect Income Tax Article 22 on behalf of domestic online merchants—meaning businesses must adapt to withholding at transaction source, not self-reporting.

By NomadicTax Research Team • 5-8 min read • September 3, 2026

## What changed in Indonesia’s tax collection for online merchants Indonesia’s Directorate General of Taxes (DGT) issued **Regulation No. 37 of 2025**, which appoints marketplaces like Tokopedia, Shopee, Lazada, and Blibli to act as tax collectors for *Income Tax Article 22* on transactions made by domestic merchants through these platforms. The regulation took effect **July 1, 2026**, with actual withholding beginning **August 1, 2026**. ([pajak.go.id](https://pajak.go.id/en/artikel/not-new-tax-dgt-collaborate-marketplaces-simplify-online-merchants-tax-mechanism?utm_source=openai)) It’s critical to note that this is **not a new tax**—rather, a shift in who remits the tax. Merchants don’t owe more tax, but the marketplace will deduct and remit part of the tax at the point of sale. ([pajak.go.id](https://pajak.go.id/en/artikel/not-new-tax-dgt-collaborate-marketplaces-simplify-online-merchants-tax-mechanism?utm_source=openai)) ## What ASEAN digital sellers must do to comply - **Review your marketplace contracts**: Confirm which marketplace(s) you're using is now withholding tax on your sales, and whether they’ve adjusted support documentation accordingly. - **Check your turnover and thresholds**: Some online sellers may previously have been under certain thresholds and now are within scope of withholding depending on sales volumes per marketplace. - **Document properly**: Withholding requires correct details—tax ID, business status, type of goods/services. Ensure your profile on the marketplace includes this. - **Adjust cash flows**: Because marketplaces will withhold at source, your net receipts will be lower—plan accordingly for payouts and reconciling quarterly or annual tax. - **Follow up on tax credits/deductions**: Depending on your entity type, you may still be eligible for deductions or credits — ensure you retain invoices, expenses tied to digital selling. ## Examples of impact - **Small online boutique in Jakarta**: Previously collected full transaction revenue and remitted Article 22 tax monthly. Under new system, Shopee will withhold at each sale, reducing cash-on-hand, but removing your monthly compliance burden for those particular transactions. - **Digital service provider outside major marketplaces**: If you sell via your own platform, you’re still responsible for self-assessment and remittance unless your platform has contracted with DGT to manage withholding. ## Strategic planning tips 1. **Review pricing models** to account for the net after withholding—for example, offer “gross-up” to customers or increase markup. 2. **Align accounting systems**: Update bookkeeping software to match marketplace statements showing withheld amounts for matching your tax filings. 3. **Seek clarity on definitions**: What qualifies as “domestic merchant,” where the platform is resident, or whether income includes fees/commissions. 4. **Monitor regulatory updates**: There may be clarifications on implementation for foreign online sellers, cross-border transactions, or exemptions. **Actionable insight**: If you operate in Indonesia and sell via marketplaces, immediately request a breakdown of withheld amounts from your platform, and project how this will affect your cash flow in the next quarter. Reforecast your earnings net of withholding to avoid surprises. --- Author: **NomadicTax Research Team**, category: **Digital Nomad / Online Business** — readTime ~6 min.