Digital Nomad
How Indonesia’s Online Marketplaces Now Withhold Income Tax: What Digital Sellers Must Know
From August 1, 2026 online marketplaces like Tokopedia and Shopee are required to withhold PPh Article 22 on behalf of sellers—no new tax, but compliance and reporting shift.
By NomadicTax Research Team • 5-8 min read • August 18, 2026
## What’s Changed
Effective **August 1, 2026**, regulations implemented by Indonesia’s Directorate General of Taxes (DGT) under **Permenkeu No. 37/2025** require online marketplaces (Tokopedia, Shopee, Lazada, Blibli) to **withhold Income Tax Article 22** on sales transacted by domestic merchants through their platforms. ([pajak.go.id](https://pajak.go.id/id/node/120303?utm_source=openai))
This doesn’t create a new tax obligation—it shifts responsibility for **collection and reporting** from individual merchants to the marketplaces themselves. ([pajak.go.id](https://pajak.go.id/id/node/120303?utm_source=openai))
## Who This Affects
- **Domestic online merchants** using those four specified marketplaces. If you’re selling goods or services via these platforms, your income is now subject to withholding by the platform. ([pajak.go.id](https://pajak.go.id/id/node/120303?utm_source=openai))
- **Marketplaces/platforms**—must upgrade systems to track transactions, withhold PPh 22, remit, and report to DGT.
## What Merchants Should Do
- Review if your platform or marketplace is among those appointed (Tokopedia, Shopee, Lazada, Blibli). ([pajak.go.id](https://pajak.go.id/id/node/120303?utm_source=openai))
- Check documentation required by the platform for tax identification (NPWP), invoices, and transaction reporting. Ensure your NPWP is valid and recorded with the marketplace.
- Understand that the **tax withheld** will be deducted from your proceeds; ensure pricing and cashflow plans account for withholding differences.
- Keep records of platform statements showing withheld tax; these will likely be needed for annual tax returns or credit claims.
## Example Scenario
If you are a crafts merchant on Shopee making Rp 20 million in sales in July 2026, when marketplace collects payment in August, Shopee is required to withhold Article 22 tax on that transaction before remitting the rest of the proceeds.
## Practical Implications
- Record-keeping increases: maintain accurate transaction reports and receipts from marketplaces.
- Platforms may adjust payout statements to reflect tax withheld; reconcile accounts accordingly.
- While no new tax burden, deferred cashflow for some merchants may shift due to timing of withholding vs payment cycles.
- Must stay updated if marketplace changes status (e.g., end of appointment or addition of new platforms). DGT’s regulation mandates selection based on system readiness, administrative capacity. ([pajak.go.id](https://pajak.go.id/id/node/120303?utm_source=openai))
## Action Points for Digital Sellers
- Ensure your identity documents and NPWP are up to date with marketplace records.
- Monitor communications from marketplaces about system changes, reporting, and withholding schedules.
- Budget for the impact of withholding on your net proceeds.
- Keep copies of all transaction statements—helps when reconciling and file your tax return correctly.
Indonesia’s move reflects a global trend of platform-withholding and simplification; while it redistributes administrative burden, sellers must adapt to ensure clean reporting and avoid surprises.