DGT Clarifies Marketplace Tax Policy Is Not a New Tax

Director General of Taxes at the Ministry of Finance, Bimo Wijayanto, stated that the marketplace tax policy is not a new tax, but rather a change in the tax collection mechanism amid the development of the digital economy. Minister of Finance Regulation (PMK) Number 37 of 2025 only alters the tax settlement mechanism, shifting it from self-payment by merchants to collection by government-appointed marketplaces. “This tax is not a new tax. It is income tax on business activities conducted through marketplaces. Once again, only the mechanism has changed, from previously being self-paid by domestic merchants to being collected by designated marketplaces,” Bimo said during a press conference in Jakarta on Wednesday. Under this scheme, marketplaces will collect Income Tax Article 22 at a rate of 0.5 per cent of the seller’s gross turnover. The mechanism involves consumers making payments through the marketplace, after which the marketplace collects Income Tax Article 22 on the seller’s income, issues an invoice, deposits the collection to the state treasury, and reports it via the Periodic Unified Income Tax Return. However, this provision only applies to sellers with an annual turnover or gross revenue exceeding Rp500 million. The four marketplaces appointed as tax collectors are Tokopedia, Shopee, Lazada, and Blibli. The appointment takes effect from 1 July 2026, though the government is providing a one-month transition period, making the tax collection obligation effective from 1 August 2026. On the same occasion, the Chairman of the Indonesian E-Commerce Association (iDEA), Budi Primawan, expressed respect for the government’s policy as stipulated in the PMK. “We respect the government’s policy as set out in PMK Number 37 of 2025. We understand that this policy is not the imposition of a new tax, but rather a change in the tax administration mechanism through marketplaces,” Budi said. He noted that the industry’s current focus is ensuring the policy’s implementation runs effectively, provides legal certainty, and minimises operational impacts for both marketplaces and sellers.