Indonesia to Require Major E‑Commerce Platforms to Collect Income Tax from Sellers

Indonesia's Ministry of Finance has designated four e‑commerce marketplaces—Tokopedia, Shopee, Lazada and Blibli—to collect Article 22 income tax (PPh 22) on sellers' gross turnover. The tax rate is 0.5 % and the policy takes effect on 1 August 2026, following a one‑month transition period for system preparation.

The collection applies only to sellers with annual gross revenue exceeding Rp 500 million. Under the new mechanism, the marketplace automatically deducts the tax from the seller’s payment, issues a withholding receipt, remits the amount to the state treasury and reports it via the Unified Periodic Tax Return. Officials stressed that the measure changes the collection method rather than introducing a new tax. Finance Minister Purbaya Yudhi Sadewa indicated that additional marketplaces may be appointed gradually.

The regulation is based on Minister of Finance Regulation No. 37/2025 and aims to improve tax compliance in the digital economy.