Marketplaces Are Now Required to Collect 0.5% Income Tax from Online Sellers – Here’s What the New Regulation Says

Under this new regulation, Electronic System-Based Trade Providers (PPMSE) – commonly known as marketplaces – are appointed to act as tax collectors for income generated by online sellers.

Who is subject to the tax?
All domestic sellers who transact through digital platforms will be subject to a 0.5% Income Tax (PPh 22) deduction from their gross revenue.

However, there’s an important exception:
Individual sellers with annual revenue under IDR 500 million who submit an income declaration letter will not be subject to this tax deduction.

Which platforms are affected?
The regulation also applies to foreign marketplaces that meet specific criteria, such as:

• Utilizing escrow accounts to hold tax funds,

• Reaching a certain transaction value in Indonesia within the past 12 months,

• Having user traffic exceeding a specific threshold during the same period.

Why is this regulation being implemented?
According to the government, the policy aims to:

• Encourage citizen participation in national development through tax contributions,

• Provide legal certainty and fairness,

• Simplify administrative processes,

• Enhance the efficiency of tax collection in the digital age.

  
  💡 Is your business ready for this new regulation?
  If you’re an online seller or a platform operator, now’s the time to ensure compliance with PMK 37/2025.
  📩 Need help adapting your tax processes or legal structure? Contact our expert team at Satra Sinar Abadi Group today.
  
  This new policy marks a major step forward in Indonesia’s digital tax reform. While it introduces new administrative responsibilities, it also creates a more transparent and fair digital ecosystem.

  Stay informed and start preparing today.
  
  Satra Sinar Abadi Group

A new digital taxation era has officially begun. The Indonesian Government, through the Ministry of Finance Regulation (PMK) No. 37 of 2025, has mandated e-commerce platforms to collect income tax (PPh) on transactions made by domestic sellers. This policy, signed by Minister Sri Mulyani on June 11, 2025, takes effect starting July 14, 2025.