Background
In Indonesia, Ministerial Regulation (PMK) No. 37/2025 mandates that digital marketplaces like Tokopedia, Shopee, Lazada, and Blibli will collect Income Tax Article 22 on behalf of domestic merchants from August 1, 2026, shifting the burden from merchants to the platforms. (pajak.go.id)
What This Means for Online Merchants
| Before August 1, 2026 | After August 1, 2026 |
|---|---|
| Merchants calculate and remit their tax themselves | Marketplaces withhold tax at transaction point and remit it for them |
This doesn’t introduce a new tax—it changes who collects it. If you are a merchant:
- Verify your turnover and ensure the marketplace has correct identity and tax credentials.
- Confirm your classification (domestic merchant, nonmerchant, etc.) under the regulation.
- Update your paperwork so your marketplace has correct details for withholding and reporting.
Implications for Marketplaces
- Tech platforms must adapt their systems to handle withholding, reporting, and remittance protocols.
- They’ll also need to send proper notices/receipts to merchants.
- Make sure you have clear communication and support materials—for example, FAQs, training, or digital help tools to guide merchants through this shift. (pajak.go.id)
Actionable Steps & Best Practices
- Review past tax returns to compare liability as a self-remitter vs. via marketplace withholding. See if there's any over or underpayment.
- Keep accurate transaction records—gross receipts, commissions paid, fees withheld—so you can reconcile marketplace statements with your income reporting.
- Seek professional tax guidance if your situation is complex (e.g., you sell across platforms, or have import/export aspects).
- Educate staff or contractors—if others manage your online selling, ensure they understand the new rules to avoid mistakes.
Example Scenario
- Rina sells via an online platform and usually remits her income tax herself. Starting August 1, 2026, the marketplace deducts Income Tax Article 22 every transaction. The marketplace remits to the government. Rina must check that the withheld amounts show up correctly on her tax statement at year end. If wrongly applied, she may need to correct via tax returns or contact the marketplace.
Key Takeaways
- The shift aims to streamline compliance and level the field between traditional and online sellers.
- Merchants remain accountable—incorrect declarations or missing documentation still carry penalties.
- Preparation—reviewing contracts, checking marketplace settings, keeping clean books—is essential for a smooth transition.