JAKARTA. The Indonesian government has begun implementing Minister of Finance Regulation (PMK) No. 37 of 2025 by appointing four major marketplaces to collect Income Tax Article (ITA) 22 on income earned by domestic online merchants. The designated platforms are Blibli, Shopee, Tokopedia, and Lazada.
The policy is part of the government's efforts to simplify tax administration, provide greater legal certainty, and establish a fairer tax system for businesses operating through both digital and conventional sales channels.
Director General of Taxes Bimo Wijayanto emphasized that the regulation does not impose a new tax on online merchants. According to him, business operators have always been required to pay income tax in accordance with existing tax laws. The new regulation only changes the tax collection mechanism by requiring marketplaces to collect the tax on behalf of the government.
"PMK No. 37 of 2025 does not introduce a new type of tax. Merchants earning business income have always been required to pay income tax under the applicable regulations. This regulation merely establishes a collection mechanism through marketplaces, making tax administration simpler while providing greater certainty for business operators," Bimo said, as quoted in an official statement from the Directorate General of Taxes (DGT).
Not an Additional Tax Burden
Under the regulation, marketplaces will collect Income Tax Article (ITA) 22 at a rate of 0.5% of gross turnover, excluding Value Added Tax (VAT) and Luxury Goods Sales Tax (LGST).
However, the government stressed that this collection does not constitute an additional tax burden. The amount collected can be credited against the taxpayer's annual income tax liability during the current tax year or treated as part of the settlement of Final Income Tax, in accordance with the prevailing tax regulations.
The government also confirmed that small businesses will continue to receive tax protection. Individual taxpayers with an annual gross revenue of up to IDR 500 million will not be subject to the ITA 22 collection by marketplaces, provided they have submitted the required declaration letter. As a result, they will continue to enjoy the tax incentives available under Indonesian tax law.
In addition, PMK No. 37 of 2025 exempts several types of transactions from ITA 22 collection. These include courier and delivery services provided by partners of technology-based application companies, sales of goods and/or services by merchants holding a Certificate of Exemption (SKB) from income tax withholding or collection, and sales of prepaid mobile phone credit and SIM cards.
Bimo added that the government will continue coordinating with marketplace operators to ensure the smooth implementation of the new policy. (KEN)
