DGT Finalizes Plan to Appoint Marketplaces to Withhold Income Tax from Sellers
JAKARTA. The Directorate General of Taxes (DGT) has revealed that it is currently finalizing a plan to appoint marketplaces as withholders of Income Tax Article (ITA) 22 on behalf of their tenants (sellers).
This policy aims to strengthen oversight and close tax avoidance loopholes arising from shadow economy activities.
According to the Director of Extension, Services, and Public Relations of DGT Rosmauli, many businesses currently sell goods through marketplaces but have not yet fulfilled their tax obligations.
This situation stems from a lack of understanding and a perception that the tax administration process is overly complex. As a result, without such an appointment, online sellers are left to handle their tax obligations independently.
“By involving marketplaces as withholding agents, we hope to encourage proportionate tax compliance,” said Rosmauli in a written statement on Wednesday, June 25.
MSME Tax Provisions Remain in Effect
Nevertheless, the DGT emphasizes that this policy will not alter the substance of existing tax regulations, including those applicable to Micro, Small, and Medium Enterprises (MSMEs/UMKM).
MSME taxpayers with gross revenue below IDR 500 million within a fiscal year will remain exempt from tax. Only MSMEs with annual revenue exceeding IDR 500 million will be subject to withholding under Income Tax Article (ITA) 22.
READ: Digital Economy Tax Revenue Hits IDR 32.2 Trillion
By involving marketplaces in the ITA 22 withholding process for online sellers, DGT asserts that the policy will enhance fairness in tax enforcement.
Not a New Type of Tax
The DGT also clarifies that appointing marketplaces as ITA 22 withholders does not create a new type of tax.
This is because, in principle, Income Tax is imposed on any increase in economic capacity received by a taxpayer, including income derived from online sales of goods and services.
On the contrary, DGT claims that this policy will simplify the tax payment process, as it will be conducted through a more streamlined and integrated system within the marketplace platforms. (ASP/KEN)
