Indonesia Marketplace Tax 2026: What Sellers Need to Know About 0.5% PPh 22
What Changes for Marketplace Sellers From 1 August 2026?
From 1 August 2026, Shopee, Tokopedia, Lazada and Blibli will begin withholding PPh Article 22 from qualifying transactions completed by domestic sellers in Indonesia.
The withholding rate is 0.5% of the gross amount stated in the invoice, excluding VAT and luxury-goods sales tax. This is not a new tax: PMK 37/2025 changes the collection mechanism by requiring appointed marketplaces to collect and remit the tax instead of leaving the entire payment process to the seller.
The withholding rate is 0.5% of the gross amount stated in the invoice, excluding VAT and luxury-goods sales tax. This is not a new tax: PMK 37/2025 changes the collection mechanism by requiring appointed marketplaces to collect and remit the tax instead of leaving the entire payment process to the seller.
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. Withholding begins from the following month. The exemption prevents marketplace withholding but does not automatically remove the seller’s other income-tax obligations.
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. Withholding begins from the following month. The exemption prevents marketplace withholding but does not automatically remove the seller’s other income-tax obligations.
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 Must Sellers Provide?
Domestic sellers must provide the marketplace with their NPWP or Indonesian identity number (NIK), together with a correspondence address.
Additional documents may be required depending on the seller’s status. A qualifying individual must submit the prescribed stamped turnover declaration to use the Rp500 million exemption. A seller claiming an exemption under a valid Surat Keterangan Bebas must provide that certificate to the marketplace.
Each marketplace determines how these details and documents must be submitted. Sellers should therefore check their account information before 1 August 2026 and ensure that their tax identity matches their registered business or personal data.
Additional documents may be required depending on the seller’s status. A qualifying individual must submit the prescribed stamped turnover declaration to use the Rp500 million exemption. A seller claiming an exemption under a valid Surat Keterangan Bebas must provide that certificate to the marketplace.
Each marketplace determines how these details and documents must be submitted. Sellers should therefore check their account information before 1 August 2026 and ensure that their tax identity matches their registered business or personal data.
What Should Sellers Do Before 1 August 2026?
Before marketplace withholding begins, sellers should:
PT and PT PMA sellers should also brief their accounting team or tax adviser. The 0.5% deduction affects cash received from each covered transaction and must be correctly classified in the company’s tax records.
- verify that their NPWP or NIK and correspondence address are correctly registered;
- confirm whether they are taxed under the ordinary or Final PPh regime;
- submit the required stamped declaration if they qualify for the individual Rp500 million exemption;
- provide any valid Surat Keterangan Bebas applicable to their transactions;
- ensure that marketplace invoices and withholding amounts can be recorded in their accounting system; and
- establish a monthly reconciliation process for sales, withheld PPh Article 22 and tax reporting.
PT and PT PMA sellers should also brief their accounting team or tax adviser. The 0.5% deduction affects cash received from each covered transaction and must be correctly classified in the company’s tax records.
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 Will Begin Withholding PPh Article 22?
Shopee, Tokopedia, Lazada and Blibli have been appointed to begin withholding PPh Article 22 from covered transactions on 1 August 2026.
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. Withholding begins in the following month.
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:
Prepare Your Marketplace Tax Process Before Withholding Begins
Marketplace sellers should review their tax status, exemption eligibility, accounting records and marketplace data before the new withholding mechanism begins.
Business Consulting Bali can assist PT, PT PMA and individual sellers with assessing the practical impact of PPh Article 22 withholding, identifying required documentation and establishing a clear process for recording and reconciling the amounts withheld.
Business Consulting Bali can assist PT, PT PMA and individual sellers with assessing the practical impact of PPh Article 22 withholding, identifying required documentation and establishing a clear process for recording and reconciling the amounts withheld.
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