Marketplace Tax Collection for Online Traders Effective 1 August, Not 1 July

Jakarta - The Directorate General of Taxes (DJP) at the Ministry of Finance has announced that four designated marketplaces will begin collecting Income Tax Article 22 (PPh Pasal 22) from online merchants starting 1 August 2026. Director General of Taxes Bimo Wijayanto stated that the tax authority is providing a one-month preparation period for the marketplaces. “The appointment of these first four major marketplaces, this initial policy we are conveying, will take effect on 1 August. So there is one month for preparation,” Bimo said during a press conference on Wednesday (1/7/2026). He explained that the one-month transition period is intended to allow the marketplaces to better prepare their systems for collecting the tax from traders. Bimo added that during this transition month, there is potential for additional marketplaces to be appointed as tax collectors. “In its development, we will certainly consider whether other marketplaces meet the criteria in terms of system readiness, transaction scale, and administrative capacity, and we will appoint them as subsequent marketplace collectors,” he explained. However, online traders with an annual turnover not exceeding Rp500 million can be exempted from the PPh Article 22 collection by submitting a declaration letter to the marketplace. “The collection of PPh Article 22 by the marketplace is exempted, not carried out, for individual taxpayers with a turnover of up to Rp500 million per year who submit a declaration letter. Please submit the declaration letter to the marketplace, and the marketplace will not collect the tax,” Bimo stated.