Four E-commerce Platforms to Deduct 0.5% Seller Tax Starting Tomorrow, Here are the Rules
Starting 1 August 2026, e-commerce platforms will begin collecting Income Tax (PPh) Article 22 from sales transactions. The Directorate General of Taxes (DJP) of the Ministry of Finance has appointed four marketplaces to implement this starting tomorrow: Tokopedia, Shopee, Lazada, and Blibli.
The tax collection regulation is stipulated in Minister of Finance Regulation (PMK) Number 37 of 202<0xC2>5, which governs the designation of third parties as collectors, depositors, and reporters of Income Tax collected from domestic traders operating through electronic trading systems.
In practice, these four marketplaces will collect PPh Article 22 from online merchants at a rate of 0.5% of the gross turnover earned by domestic traders. This does not include VAT (PPN) or Luxury Goods Sales Tax (PPnBM). The four marketplaces selected for this initial phase were chosen based on several factors, including platform system readiness, transaction scale, administrative capacity, and the use of escrow account mechanisms.
Previously, the Director General of Taxes, Bimo Wijayanto, stated that the tax collection scheme for online stores on marketplaces would simplify the process for traders. He outlined several steps in the implementation mechanism: first, payments are made through the marketplace; second, the marketplace collects PPh Article 22 on the income of domestic traders; third, the marketplace issues an invoice or notification for the transaction, detailing the amount of PPh Article 22 collected; and finally, the electronic invoice issued by the marketplace serves as a document equivalent to proof of PPh Article 22 collection.
List of Exempt Traders
However, not all traders will be subject to this tax. Online traders who are individual taxpayers with a gross turnover of up to Rp 500 million per year will not be charged PPh Article 22 by the marketplaces, provided that the traders have submitted a statement letter in accordance with the provisions in PMK 37/2025.
The full criteria for those exempt from PPh Article 22 collection by marketplaces are:
Individual taxpayers with an annual turnover of up to Rp 500 million who submit a statement letter to the marketplace.
The sale of delivery or expedition services by domestic individual taxpayers acting as partners of technology-based application companies.
The sale of goods and/or services by traders who possess a Certificate of Exemption from income tax deduction/collection.
The sale of mobile credit (pulsa) and starter packs.
Transactions involving gold jewellery, gold bars, gemstones, and similar items under specific provisions.
The transfer of rights to land and/or buildings or the sale and purchase agreement (PPJB) for land and/or buildings.