Effective 1 October 2026, the Indonesian government commenced the collection of Income Tax Article 22 (PPh Pasal 22) on transactions facilitated through electronic marketplace platforms, pursuant to Minister of Finance Regulation (PMK) Number 58 of 2025. This measure targets sellers utilizing marketplace platforms to sell goods, requiring marketplace operators to act as tax collectors by withholding 0.5% of gross transaction value from sellers who are not registered for VAT (PKP) or 0.25% for PKP sellers. The regulation aims to capture tax revenue from the rapidly growing digital economy sector and improve compliance among micro, small, and medium enterprises (MSMEs) operating online.
Key Takeaways
- Marketplace as Tax Collector: Marketplace operators must integrate withholding mechanisms into their payment gateway systems, remit collected taxes monthly, and issue digital withholding slips (bukti potong) to sellers via the CoreTax platform.
- Threshold and Exemptions: The collection applies only to sellers exceeding annual gross revenue of IDR 4.8 billion; sellers below this threshold are exempt but must still report transactions for data purposes.
- Compliance Incentives: Sellers who consistently comply receive reduced withholding rates (0.25% for non-PKP, 0.1% for PKP) after 12 consecutive months of timely tax reporting, encouraging formalization.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement