Indonesia to implement marketplace income tax on November 1, 2026

The Indonesian government will implement the collection of Income Tax (PPh) Article 22 on marketplace transactions starting November 1, 2026. This follows the expiration of a policy postponement scheduled to end on October 31, 2026. Director General of Taxes Bimo Wijayanto stated that the implementation will align with the readiness of digital platforms.

Economists from the Institute for Development of Economics and Finance (INDEF) have advised that the collection process must be automated and integrated with National Identity Numbers (NIK) and Taxpayer Identification Numbers (NPWP) to prevent double taxation and reduce administrative burdens on micro, small, and medium enterprises (MSMEs).

While the 0.5 percent tax rate is considered relatively low, experts warn that because the tax is calculated based on turnover, it could impact MSMEs with thin profit margins. To protect micro-businesses, the effectiveness of the Rp500 million annual turnover threshold must be maintained to prevent rising prices or a shift toward informal, non-marketplace transactions.