Get Ready! Online Shops to Be Subject to PPh 22 Tax in Mid-2026

Finance Minister Purbaya Yudhi Sadewa is reportedly set to appoint domestic e-commerce platforms as tax collectors for sales transactions of goods by merchants selling on their platforms. The policy will be implemented if the economy grows positively in the second quarter of 2026. “If the second quarter is still good (for the economy), we will consider (implementation) to also create fairer competition between online and offline, of course with clear analysis from the data we have,” Purbaya said during a working meeting with Commission XI of the House of Representatives on Monday (6/4/2026). Purbaya stated that the policy was initially planned for 2025 but was postponed due to unstable economic conditions in Indonesia. According to him, the improving economic situation is encouraging the government to revive the plan. “Actually, the Directorate General of Taxes already had a plan to impose taxes on online transactions, but at that time the economy was still somewhat disrupted, so we haven’t implemented it. Now it’s quite good,” he said. According to Purbaya, the policy plan is a response to complaints from offline traders about goods from China flooding the e-commerce market. Therefore, the government has set regulations requiring digital platform operators such as marketplaces to collect income tax (PPh) under Article 22 at 0.5% of the sellers’ turnover from online transactions. This provision is contained in Ministerial Regulation (PMK) No. 37 of 2025. The parties subject to this tax are domestic businesses selling through e-commerce. Marketplaces and certain foreign platforms will be designated by the Directorate General of Taxes (DJP) as tax collectors. Referring to Article 8 of the regulation, the PPh 22 collection rate is 0.5% of the gross circulation received or obtained by domestic traders listed in the invoice documents, excluding Value Added Tax (PPN) and Luxury Goods Sales Tax (PPnBM). Meanwhile, under Article 6 paragraph (2), individual traders (OP) with annual turnover up to Rp500 million are not subject to collection, provided they submit a turnover declaration letter to the marketplace. If turnover exceeds Rp500 million in the current year, they must also report it via a declaration letter to the marketplace platform.