Indonesia postpones marketplace income tax collection

The Indonesian Ministry of Finance has postponed the collection of Article 22 Income Tax (PPh Pasal 22) for online merchants on marketplace platforms. Originally scheduled to begin on August 1, 2026, the implementation of the 0.5% tax levy has been delayed until November 1, 2026.

Finance Minister Purbaya Yudhi Sadewa stated that the postponement is due to considerations regarding the national economic condition and public purchasing power. Indonesia's economic growth slowed to 5.29% year-on-year in the second quarter of 2026, compared to 5.61% in the first quarter.

In response to the delay, designated marketplace platforms including Tokopedia, Shopee, Blibli, and Lazada will refund the tax amounts already collected from merchants. Tokopedia and Shopee have committed to automated refunds to seller accounts, with Shopee initiating gradual refunds between August 14 and September 30, 2026, and Tokopedia aiming to complete its process by September 30, 2026. The Directorate General of Taxes also indicated that the official appointment of these marketplaces as tax collectors will be canceled and reissued.