Digital Nomad
What Indonesia’s New Marketplace-Based Withholding Means for Online Merchants
From August 2026, e-commerce marketplaces in Indonesia will start withholding income tax for your transactions—learn what it is, who is affected and how to adapt.
By NomadicTax Research Team • 5-8 min read • August 23, 2026
## What’s New
- Since **August 1, 2026**, large Indonesian marketplaces like **Tokopedia, Shopee, Lazada, and Blibli** have started **withholding Income Tax Article 22** on income generated by domestic merchants via their platforms. ([pajak.go.id](https://pajak.go.id/en/artikel/not-new-tax-dgt-collaborate-marketplaces-simplify-online-merchants-tax-mechanism?utm_source=openai))
- The legal basis is **Ministry of Finance Regulation No. 37/2025**, which allows other parties—marketplaces—to act as collectors for sellers' tax obligations. ([pajak.go.id](https://pajak.go.id/en/artikel/not-new-tax-dgt-collaborate-marketplaces-simplify-online-merchants-tax-mechanism?utm_source=openai))
- Importantly, this isn’t a **new tax**—it shifts who collects the tax, not a change in how much is owed. ([pajak.go.id](https://pajak.go.id/en/artikel/not-new-tax-dgt-collaborate-marketplaces-simplify-online-merchants-tax-mechanism?utm_source=openai))
## Who’s Affected
- **Domestic online merchants** on eligible marketplaces, including but not limited to Tokopedia, Shopee, Lazada, Blibli. If you sell through these platforms, the tax will be withheld at source.
- **Marketplaces themselves**: they need to ensure system readiness, proper turnover thresholds, and compliance in remitting withheld tax. ● Both parties need to be aware of documentation requirements. ([pajak.go.id](https://pajak.go.id/en/artikel/not-new-tax-dgt-collaborate-marketplaces-simplify-online-merchants-tax-mechanism?utm_source=openai))
## How the Withholding Works
- When a transaction occurs, a portion (as defined under Tax Article 22) is withheld **by the marketplace before funds reach the merchant**.
- Documentation: Sellers may need **tax identification numbers** registered with the marketplace; platforms will include withholding details in statements. Businesses should ensure proper registration and compliance to avoid surprises.
## Examples
- A small home‐based seller on Shopee receives Rp100,000 worth of sales. The marketplace might withhold a fixed percentage (say, 0.5% or other rate defined) at checkout. Seller receives net after withholding; marketplace reports and remits the withheld amount to the tax authorities.
- A larger fashion boutique with high turnover may need to review its turnover threshold to ensure it’s classified correctly under regulation; may need to maintain more detailed reporting.
## Strategic Responses for Merchants & Platforms
- **Merchants**: Review pricing models—if tax is withheld at source, what does this do to net margins? Factor withholding into cost and cash flow planning.
- **Ensure proper registration**: Make sure your **NPWP (Tax Identification Number)** is correctly submitted; update marketplace profile.
- **Maintain records**: Marketplace statements, receipts showing tax withheld, transaction logs—important for reconciliation and for tax filings.
- **Seek clarity**: Many platforms will issue FAQs, training, or support as this rollout is recent—use them.
## Broader Implications and Trends
- This mirrors global trend toward **withholding agents** in digital commerce to simplify tax collection and reduce evasion.
- It levels the playing field between online/offline sellers: both face diligence in collecting and remitting taxes.
- Platforms shoulder increased compliance burden (systems integration, reporting), but merchants benefit from less direct admin in collecting and remitting tax themselves.
## Action Checklist
- 🔹 Check your marketplace profile: make sure Tax ID is up to date
- 🔹 Adjust pricing to account for withheld tax
- 🔹 Download statements from marketplaces regularly to track withheld amounts
- 🔹 Consult tax advisor if you're unsure about turnover thresholds or document requirements