Digital Nomad
Marketplace Withholding in Indonesia: A Digital Seller’s Shift Under PMK 37/2025
Indonesia’s new regulation shifts withholding responsibility from sellers to major e-commerce platforms, offering relief for small sellers while the marketplaces adjust. A must-read for online entrepreneurs navigating the new Article 22 regime.
By NomadicTax Research Team • 5-8 min read • August 21, 2026
## What’s Changing? PMK 37/2025 & Marketplace Withholding
Since **August 1, 2026**, four large Indonesian e-commerce platforms — **Tokopedia, Shopee, Lazada**, and **Blibli** — are now designated to **automatically withhold Income Tax Post 22** from domestic merchant sales. This change stems from **Regulation of the Minister of Finance Number 37 of 2025**, which grants marketplaces authority to act as tax collectors. ([pajak.go.id](https://www.pajak.go.id/id/node/120303?utm_source=openai))
<b>Key features:</b>
- **Automated withholding** at transaction point — tax deducted before funds reach sellers. ([pajak.go.id](https://www.pajak.go.id/id/node/120303?utm_source=openai))
- **Relief for small sellers:** those with annual gross turnover ≤ IDR 500 million are exempt, provided they submit annual turnover statements and maintain under the threshold. Exemptions also cover certain professions and commodities. ([pajak.go.id](https://www.pajak.go.id/id/node/120303?utm_source=openai))
## Impacts & Risks for Sellers
This isn't a new tax, but a shift in who remits it. Transactions remain taxed, but responsibility for compliance moves to marketplaces. Sellers receiving funds now see net amounts post-withholding, and marketplaces issue documents treated as official Article 22 receipts, removing previous burdens of filing withholding slips manually. ([pajak.go.id](https://www.pajak.go.id/id/node/120303?utm_source=openai))
Small sellers must be especially alert. If turnover crosses the threshold mid-year, exemption lapses, and extra reporting or backdated obligations might apply.
## Actionable Advice for Digital Sellers
| Step | What You Should Do |
|------|----------------------|
| Audit turnover history | Check if you exceeded IDR 500 million in past years — if yes, prepare for full withholding. |
| Submit the statement format timely | Needed annually to claim exemption. Keep records ready. |
| Adjust pricing/financial planning | Factor in withholding so you’re not shocked by lower net receipts. |
| Track documentation | Marketplaces will issue automated receipts — ensure you can align them with your tax filings. |
| Know the exemptions | Delivery partners, SIM card/mobile credit sellers and other categories may still qualify. |
## Example Scenarios
- **Seller A**, a clothing reseller: Turnover IDR 450 million/year. Exempt when she submits turnover statement. If she hits IDR 510 million mid-year, she will lose exemption and start being taxed through withholding from that point forward.
- **Seller B**, a freelance photographer selling prints: Even with digital goods, she may be exempt under the same turnover rule — but must be sure to NOT be in a category listed among the professions that are excluded. Professions such as influencers, content creators are explicitly **outside** the UMKM final tax regime under new PP 20/2026 — so check your status. ([pajak.go.id](https://pajak.go.id/id/artikel/era-baru-pph-final-umkm-bentuk-nyata-insentif-tepat-sasaran?utm_source=openai))
## Broader Context: UMKM Final Income Tax Reform
This withholding change sits alongside Indonesia’s broader reforms under **Peraturan Pemerintah (PP) 20 Tahun 2026**, which refined which types of taxpayers may use the **PPh Final UMKM** rate of **0.5% on gross turnover** with an Rp 4.8 billion cap. Only individuals, one-person PTs, and cooperatives are eligible. Entities like CV, Firma, BUMDes/BUMDesma no longer qualify. Content creators and digital workers are excluded. ([pajak.go.id](https://pajak.go.id/id/artikel/era-baru-pph-final-umkm-bentuk-nyata-insentif-tepat-sasaran?utm_source=openai))
## What’s Next?
- Monitor turnover to avoid crossing thresholds unknowingly.
- Plan entity type carefully — qualifying for UMKM final tax depends on legal form.
- Keep good bookkeeping: even with final tax on gross turnover, once you're out of the finalized scheme, regular income tax rules apply, with deductible expenses, etc.
- Consult with a tax advisor when selling via marketplace to ensure digital receipts and remittance align with your filings.
---
This change highlights Indonesia’s push towards modernizing digital tax compliance while protecting small online sellers. If you sell through marketplaces here, now’s the time to understand how withholding, exemptions, and entity status shape your tax obligations.