Compliance
How Indonesia’s Marketplace Withholding Under PPh Article 22 Will Change Your Digital Sales Setup
From August 1, 2026, Indonesia’s new regulation shifts the withholding and remittance of Income Tax 22 from sellers to marketplace platforms—crucial for online merchants to understand and adjust.
By NomadicTax Research Team • 5-8 min read • August 28, 2026
## 1. What’s Changing Under Regulation MOF 37/2025
- **Effective Date**: Although MOF Regulation 37/2025 was signed on **11 June 2025**, the withholding of **PPh Article 22** by platforms starts **August 1, 2026**.([pajak.go.id](https://www.pajak.go.id/en/artikel/not-new-tax-dgt-collaborate-marketplaces-simplify-online-merchants-tax-mechanism?utm_source=openai))
- **Execution**: Platforms like **Tokopedia, Shopee, Lazada, Blibli** are appointed to collect & remit Income Tax from domestic merchants selling through them. Previously, merchants themselves were fully responsible to calculate and pay.([pajak.go.id](https://www.pajak.go.id/en/artikel/not-new-tax-dgt-collaborate-marketplaces-simplify-online-merchants-tax-mechanism?utm_source=openai))
## 2. Who is Impacted? And How Much
- **Domestic online merchants** using covered platforms in Indonesia must adapt pricing or accounting as platforms will withhold tax at source.
- **Thresholds**: Turnovers and documents will be scrutinized—eligible merchants may still be outside the platform-withholding scope if thresholds are not met—but documentation is important.
## 3. Practical Adjustments for Affected Businesses
- Review marketplaces’ policies: Are they withholding Article 22 tax already? Platforms must adapt systems under MOF regulation.
- Update invoices / receipts to reflect tax withheld by platform rather than self-paid by merchant.
- Adjust cash flows: since receivable amounts will net of withholding, plan working capital accordingly.
- Maintain proper documentation proving your sales and tax paid via the marketplace to support your own filings.
## 4. Example
| Seller Type | Before Aug 1 2026 | After Aug 1 2026 |
|-------------|----------------------|-------------------|
| Medium online shop on Shopee | Calculates and remits PPh Article 22 monthly itself | Shopee deducts appropriate Article 22 tax from each transaction, remits to DGT, then transfers remainder to seller |
| Micro-seller below threshold | Minimal Article 22 responsibility, maybe relief/exemption | Platform may still handle withholding if seller passes threshold or meets criteria; must verify status |
## 5. Ensuring Compliance
- Keep accurate records of sales by marketplace, including tax documents/withholding slips from platform.
- Consult tax or legal advisors to evaluate if your seller profile qualifies for reduced withholding (especially if below thresholds). Advisory firms like **PwC Indonesia** have published guides explaining implementation pitfalls. For example, how to avoid double-counting withheld taxes and ensuring marketplace remittances are acknowledged.([pajak.go.id](https://www.pajak.go.id/en/artikel/not-new-tax-dgt-collaborate-marketplaces-simplify-online-merchants-tax-mechanism?utm_source=openai))
## 6. Long-Term Implications
- Increased tax certainty and traceability in e-commerce revenues.
- Platforms bear more administrative burden, which may influence marketplace fees or commissions.
- Encourages more formalization of small sellers; those who blend sales across platforms and off-platform channels will need clean bookkeeping.
For Indonesia’s online economy, this move signals tighter integration between taxation and platform surveillance. Proactive planning now avoids misreporting or cash flow shocks down the line.