On 20 August 2026, the Pondok Aren Tax Office conducted targeted education for online merchants regarding the final Income Tax (PPh) rate of 0.5% applicable to gross turnover up to Rp500 million annually, as stipulated in PMK-37/2025. This regulation implements the provisions of Law No. 7/2021 on Tax Harmonization, which introduced a simplified final tax regime for micro and small enterprises, including marketplace sellers. The outreach clarifies that eligible taxpayers must opt into the regime via the DJP application and cannot combine it with other tax facilities. The 0.5% final tax replaces the standard progressive rates and eliminates the need for commercial bookkeeping, significantly reducing compliance burden for digital economy participants.
Key Takeaways
- Definitive Rate Clarity: The 0.5% final PPh applies to gross revenue (not net profit) for online traders with annual turnover ≤ Rp500M, providing certainty for platform-based SMEs.
- Mandatory Registration: Taxpayers must register through the DJP’s dedicated microsite to access the facility; automatic enrollment does not apply, and late enrollment forfeits the benefit for that fiscal year.
- Marketplace Withholding Alignment: E-commerce platforms are required to adjust their withholding mechanisms to reflect the 0.5% rate for opted-in sellers, preventing over-withholding that creates cash flow issues for micro merchants.
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