On Aug. 5, 2026, IDN Tax announced postponement of the effective date of the provisions on withholding of income tax article 22 by marketplaces under PMK-37/2025.
Director General of Taxation decisions already issued appointing specific marketplaces as withholders will be revoked, and new appointment decisions will be issued.
Any article 22 income tax already withheld by a marketplace from a domestic merchant under a since-revoked appointment decision must be returned by the marketplace to that merchant.
Implementation of article 22 collection provisions under PMK-37/2025 is postponed through Oct. 31, 2026, with collection to begin on Nov. 1, 2026.
On Jul. 14, IDN Tax, IDN GVT issued regs re third party tax collection.
IDN Tax and IDN GVT issued PMK-37/2025 on appointment of third parties as income tax collectors and procedures for collection, deposit, reporting of income tax collected by third parties on income received by domestic traders via electronic trading systems.
The promulgation of this regulation is aimed at simplifying tax administration for digital commerce and creating level playing field between digital and conventional businesses.
Document dated Jul. 14, 2025, received from IDN Tax Jul. 15, summarized on Jul. 16.
Outline of Regulation
Regulation establishes marketplace platforms as collectors of Article 22 income tax (PPh) on transactions by domestic merchants, with 0.5% collection rate that can be final or non-final depending on merchant status and revenue thresholds.
Individual taxpayers with revenue below or up to IDR 500mn are exempt from tax collection; those with revenue between IDR 500mn to IDR 4.8bn are subject to 0.5% rate with final or non-final treatment based on compliance with PP-55/2022 provisions.
Corporate taxpayers with revenue below or up to IDR 4.8bn are subject to 0.5% rate with final or non-final treatment; those above IDR 4.8bn are subject to 0.5% non-final rate that can be credited against annual tax returns.
Merchants are required to provide information to marketplace platforms as basis for tax collection, with invoices designated as documents equivalent to unified income tax withholding or collection certificates.
Marketplace platforms are obligated to report information to IDN Tax and maintain minimum data standards in sales invoices for tax collection purposes.
Effectiveness
The regulations are effective from Jul. 14, 2025.
Aug. 2026 IDN Tax Implementation Postponement
On Aug. 5, 2026, IDN Tax announced postponement of the effective date of the provisions on withholding of income tax article 22 by marketplaces under PMK-37/2025.
Director General of Taxation decisions already issued appointing specific marketplaces as withholders will be revoked, and new appointment decisions will be issued.
Any article 22 income tax already withheld by a marketplace from a domestic merchant under a since-revoked appointment decision must be returned by the marketplace to that merchant.
Implementation of article 22 collection provisions under PMK-37/2025 is postponed through Oct. 31, 2026, with collection to begin on Nov. 1, 2026.
