Indonesia Marketplace Tax 2026: What Sellers Need to Know About 0.5% PPh 22
October 2026 Update: Marketplace PPh 22 Withholding Is Now in Effect
Indonesia’s Directorate General of Taxes (DJP) has confirmed that marketplace withholding of PPh Article 22 under PMK 37/2025 began on 1 October 2026. This supersedes the earlier announcement that implementation would remain postponed through 31 October 2026 and start on 1 November 2026.
The Government appointed four marketplace operators as PPh Article 22 withholding agents through decisions issued on 24 September 2026: PT Shopee International Indonesia, PT Global Digital Niaga Tbk (Blibli), PT Tokopedia and PT Ecart Webportal Indonesia (Lazada).
The underlying tax framework has not changed. Appointed marketplaces withhold PPh Article 22 at 0.5% of the seller’s gross turnover stated in the invoice, excluding VAT and luxury-goods sales tax. Sellers should now verify that their tax information, exemption documents and accounting procedures correspond to the withholding actually applied to marketplace transactions.
The Government appointed four marketplace operators as PPh Article 22 withholding agents through decisions issued on 24 September 2026: PT Shopee International Indonesia, PT Global Digital Niaga Tbk (Blibli), PT Tokopedia and PT Ecart Webportal Indonesia (Lazada).
The underlying tax framework has not changed. Appointed marketplaces withhold PPh Article 22 at 0.5% of the seller’s gross turnover stated in the invoice, excluding VAT and luxury-goods sales tax. Sellers should now verify that their tax information, exemption documents and accounting procedures correspond to the withholding actually applied to marketplace transactions.
Who Is Considered a Domestic Seller?
The rules apply to both individuals and business entities, including Indonesian companies such as PT and PT PMA, when they qualify as domestic sellers.
Under PMK 37/2025, relevant indicators include receiving transaction income through a bank or similar financial account and using an Indonesian IP address or an Indonesian telephone number. The definition may also cover service providers that transact with customers through the marketplace, including certain delivery and insurance businesses.
Under PMK 37/2025, relevant indicators include receiving transaction income through a bank or similar financial account and using an Indonesian IP address or an Indonesian telephone number. The definition may also cover service providers that transact with customers through the marketplace, including certain delivery and insurance businesses.
How Is the 0.5% PPh Article 22 Calculated?
The marketplace calculates PPh Article 22 at 0.5% of the seller’s gross turnover stated in the invoice, excluding VAT and luxury-goods sales tax. The tax becomes due when the marketplace receives the customer’s payment.
For example, if the taxable gross amount is Rp10,000,000, the marketplace will withhold Rp50,000. The amount withheld can generally be credited against the seller’s income tax or treated as part of the payment of Final PPh, depending on the seller’s applicable tax regime.
For example, if the taxable gross amount is Rp10,000,000, the marketplace will withhold Rp50,000. The amount withheld can generally be credited against the seller’s income tax or treated as part of the payment of Final PPh, depending on the seller’s applicable tax regime.
Who Can Use the Rp500 Million Exemption?
The exemption from marketplace withholding is available only to resident individual taxpayers whose total gross turnover in the current tax year does not exceed Rp500 million. It does not apply to PT, PT PMA or other business entities merely because their turnover is below this threshold.
To use the exemption, the individual seller must submit a stamped declaration in the prescribed format to the marketplace. Turnover is calculated across all online and offline stores, not separately for each account or marketplace.
If the threshold is exceeded, the seller must submit a new declaration by the end of that month.
Under PMK 37/2025, withholding applies from the month following the month in which the threshold is exceeded.
To use the exemption, the individual seller must submit a stamped declaration in the prescribed format to the marketplace. Turnover is calculated across all online and offline stores, not separately for each account or marketplace.
If the threshold is exceeded, the seller must submit a new declaration by the end of that month.
Under PMK 37/2025, withholding applies from the month following the month in which the threshold is exceeded.
What Does the Withholding Mean for PT and PT PMA Sellers?
PT and PT PMA sellers cannot use the Rp500 million exemption available to qualifying individual taxpayers. The marketplace will therefore generally withhold 0.5% PPh Article 22 from their covered transactions regardless of whether the company’s turnover is below that threshold.
For a company taxed under the ordinary corporate income-tax regime, the amount withheld is generally treated as a tax credit for the current tax year rather than as the company’s final tax liability. The company must retain the marketplace invoices, reconcile the withholding with its accounting records and report the relevant income under its applicable tax regime.
For a company taxed under the ordinary corporate income-tax regime, the amount withheld is generally treated as a tax credit for the current tax year rather than as the company’s final tax liability. The company must retain the marketplace invoices, reconcile the withholding with its accounting records and report the relevant income under its applicable tax regime.
Which Transactions Are Excluded From Marketplace Withholding?
The marketplace should not withhold PPh Article 22 from certain transactions specified in PMK 37/2025.
These include:
These exclusions apply only to the marketplace withholding mechanism. The income may remain subject to income tax, withholding, payment and reporting under other applicable Indonesian tax rules.
These include:
- sales by qualifying individual taxpayers who have submitted the required Rp500 million declaration;
- delivery or expedition services provided by individual partners of app-based transportation companies;
- sales by sellers holding and submitting a valid withholding-tax exemption certificate;
- sales of mobile-phone credit and prepaid SIM cards;
- specified sales of gold, jewellery and precious stones by qualifying manufacturers or traders; and
- transfers of rights to land or buildings, including relevant sale and purchase binding agreements.
These exclusions apply only to the marketplace withholding mechanism. The income may remain subject to income tax, withholding, payment and reporting under other applicable Indonesian tax rules.
What Information and Documents Should Sellers Prepare?
Domestic sellers should ensure that their marketplace tax information is complete and consistent with their tax records.
This includes their NPWP or Indonesian identity number (NIK), together with the required correspondence address.
Additional documentation may be required depending on the seller’s status. A qualifying individual seller should prepare the prescribed stamped turnover declaration if seeking the Rp500 million exemption. A seller relying on a valid Surat Keterangan Bebas should ensure that the certificate remains available and valid.
Sellers should verify that the tax information and supporting documents held by each appointed marketplace are complete and up to date. They should follow their marketplace’s procedures for submitting or correcting this information and check that any applicable exemption is reflected in their transaction records.
This includes their NPWP or Indonesian identity number (NIK), together with the required correspondence address.
Additional documentation may be required depending on the seller’s status. A qualifying individual seller should prepare the prescribed stamped turnover declaration if seeking the Rp500 million exemption. A seller relying on a valid Surat Keterangan Bebas should ensure that the certificate remains available and valid.
Sellers should verify that the tax information and supporting documents held by each appointed marketplace are complete and up to date. They should follow their marketplace’s procedures for submitting or correcting this information and check that any applicable exemption is reflected in their transaction records.
What Should Marketplace Sellers Do Now That Withholding Has Started?
With marketplace PPh Article 22 withholding now in operation, sellers should check how the rules are being applied to their transactions and reconcile the amounts withheld with their accounting records.
Recommended actions include:
Any refund relating to withholding under the earlier, cancelled marketplace appointments should be tracked separately from withholding under the appointments effective from 1 October 2026. Sellers should retain the supporting records and confirm the status of any outstanding refund with their marketplace.
PT and PT PMA sellers should ensure that marketplace PPh Article 22 is recorded according to their applicable tax regime. Withholding should not automatically be treated as the company’s final income-tax liability.
Recommended actions include:
- verify that NPWP or NIK details and the correspondence address registered with each marketplace are correct;
- confirm whether the seller is taxed under the ordinary corporate income-tax regime or an applicable Final PPh regime;
- submit the prescribed stamped declaration if the seller is an individual who qualifies for the Rp500 million exemption;
- check the validity and submission of any Surat Keterangan Bebas relied on for exemption;
- review marketplace invoices and transaction statements to identify PPh Article 22 withheld;
- reconcile the withholding with sales and accounting records; and
- raise any discrepancies or missing exemption documentation with the relevant marketplace.
Any refund relating to withholding under the earlier, cancelled marketplace appointments should be tracked separately from withholding under the appointments effective from 1 October 2026. Sellers should retain the supporting records and confirm the status of any outstanding refund with their marketplace.
PT and PT PMA sellers should ensure that marketplace PPh Article 22 is recorded according to their applicable tax regime. Withholding should not automatically be treated as the company’s final income-tax liability.
Frequently Asked Questions
Is the 0.5% Marketplace Withholding a New Tax?
No. PMK 37/2025 changes how existing income tax is collected. Appointed marketplaces withhold PPh Article 22 and remit it to the tax authority on behalf of domestic sellers.
Which Marketplaces Were Appointed to Withhold PPh Article 22?
DJP’s announcement dated 1 October 2026 confirms that four marketplace operators were appointed through decisions issued on 24 September 2026: PT Shopee International Indonesia (Shopee), PT Global Digital Niaga Tbk (Blibli), PT Tokopedia and PT Ecart Webportal Indonesia (Lazada). Withholding under these appointments began on 1 October 2026. Sellers should check their marketplace’s procedures for tax documentation, applicable exemptions and transaction records.
Does the Rp500 Million Exemption Apply to PT or PT PMA Sellers?
No. The exemption is available only to qualifying resident individual taxpayers who submit the required stamped declaration. It does not apply to PT, PT PMA or other business entities.
How Is the 0.5% Withholding Calculated?
The marketplace calculates the withholding on the gross amount stated in the invoice, excluding VAT and luxury-goods sales tax. A taxable transaction of Rp10,000,000 therefore results in Rp50,000 of PPh Article 22 being withheld.
What Happens When an Individual Seller Exceeds Rp500 Million in Annual Turnover?
The seller must notify the marketplace by submitting the prescribed stamped declaration no later than the end of the month in which the threshold is exceeded.
Under PMK 37/2025, withholding applies from the month following the month in which the threshold is exceeded.
Under PMK 37/2025, withholding applies from the month following the month in which the threshold is exceeded.
When Did Marketplace PPh Article 22 Withholding Start?
Marketplace PPh Article 22 withholding began on 1 October 2026 for the four operators appointed by DJP on 24 September 2026. DJP confirmed this in its announcement dated 1 October 2026, superseding the previously announced start date of 1 November 2026. Sellers should now check their transaction records and ensure that their tax information and any required exemption documents are up to date.
Did the Change in Implementation Date Alter PMK 37/2025?
No. DJP confirmed that the revised implementation date did not change the substance of PMK 37/2025. The 0.5% withholding mechanism, seller-information requirements and applicable exemptions remain in place. Marketplace withholding began on 1 October 2026 under the new appointments.
What Happens to PPh Article 22 Withheld Under the Previous Marketplace Appointments?
DJP’s earlier postponement announcement stated that PPh Article 22 collected under the previous, cancelled marketplace appointments would be returned to the affected sellers by the relevant marketplace. Sellers should retain supporting transaction records, confirm any outstanding refund with their marketplace and reconcile the refund with their accounting records.
This refund arrangement concerns withholding under the previous appointments. It does not mean that PPh Article 22 correctly withheld under the new appointments from 1 October 2026 must also be refunded.
This refund arrangement concerns withholding under the previous appointments. It does not mean that PPh Article 22 correctly withheld under the new appointments from 1 October 2026 must also be refunded.
Related Insights
Marketplace withholding forms part of the wider tax and compliance framework for companies operating in Indonesia. Sellers may also find the following guidance useful:
Review Your Marketplace Tax and Withholding Process
Marketplace sellers should check that their tax status, exemption documents and accounting records match the withholding applied to their transactions.
For PT and PT PMA sellers, this includes reconciling marketplace invoices and amounts withheld, applying the correct tax treatment and tracking any outstanding refunds relating to the previous marketplace appointments.
Business Consulting Bali can assist with reviewing marketplace documentation and accounting workflows, identifying discrepancies and coordinating questions that require confirmation from the marketplace or a qualified tax adviser.
For PT and PT PMA sellers, this includes reconciling marketplace invoices and amounts withheld, applying the correct tax treatment and tracking any outstanding refunds relating to the previous marketplace appointments.
Business Consulting Bali can assist with reviewing marketplace documentation and accounting workflows, identifying discrepancies and coordinating questions that require confirmation from the marketplace or a qualified tax adviser.
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