What changed on October 1, 2026?
Indonesia began implementing the collection of Article 22 income tax (PPh Pasal 22) through certain marketplace platforms on October 1, 2026. The Directorate General of Taxes identified four appointed platforms: Shopee, Blibli, Tokopedia, and Lazada. The marketplace acts as the collector, but the underlying tax burden belongs to the domestic merchant whose income is being collected.
The policy is implemented under Minister of Finance Regulation No. 37 of 2025, with the operational launch confirmed by the Directorate General of Taxes. The government has described the measure as a change in collection mechanics rather than the creation of a new tax category.
How the collection works
For a qualifying transaction, the marketplace generally withholds 0.5% from the merchant’s relevant sales proceeds and remits that amount to the tax authority. For example:
- Gross sale: Rp1,000,000
- Article 22 collection at 0.5%: Rp5,000
- Amount remitted to the merchant before other platform deductions: Rp995,000
The exact cash settlement may also reflect platform commissions, shipping charges, refunds, or other commercial adjustments. Sellers should therefore reconcile marketplace statements to their own sales ledger rather than treating the bank deposit as gross revenue.
The Rp500 million individual threshold
The Directorate General of Taxes has stated that the existing rule remains relevant: for an individual taxpayer, the portion of annual gross turnover up to Rp500 million is not subject to income tax under the applicable final-tax framework. This does not mean every seller is automatically exempt from administrative collection. Sellers should confirm how the platform applies the threshold and how any tax collected is credited, refunded, or documented.
Practical steps for sellers
- Download monthly marketplace statements showing gross sales, returns, fees, and tax collected.
- Separate sales by platform so discrepancies can be identified quickly.
- Verify taxpayer identification data registered with each marketplace.
- Track cumulative annual turnover, not only monthly deposits.
- Retain withholding evidence and reconcile it with the annual tax return.
- Review whether the seller is an individual or corporate taxpayer, because the relevant tax treatment and reporting consequences may differ.
Example for a growing seller
Assume an individual seller records Rp80 million of marketplace sales each month for six months, producing Rp480 million in turnover. If sales continue, the seller may cross the Rp500 million annual threshold later in the year. The seller should not wait until year-end: maintain a running turnover schedule, preserve marketplace tax certificates, and evaluate whether additional income-tax obligations arise after the threshold is exceeded.
The key planning point is that marketplace withholding improves traceability but does not replace the seller’s responsibility to maintain complete books and file accurate tax information.