Marketplaces Given One Month to Prepare PPh 22 Collection System

The Directorate General of Taxes at the Ministry of Finance has provided a one-month transition period for four designated marketplaces to prepare their systems before they begin collecting Income Tax (PPh) Article 22. The adjustment period is intended to allow the companies to ready their systems before they start collecting tax from sellers. Consequently, tax collection via marketplaces will effectively commence on 1 August 2026.

Director General of Taxes Bimo Wijayanto stated that the policy does not constitute a new tax. “What has changed is only the collection mechanism, from being self-remitted by domestic traders to being collected by the designated marketplace,” Bimo said during a press conference at the Directorate General of Taxes head office in South Jakarta on Wednesday, 1 July 2026.

The provision is regulated under Minister of Finance Regulation (PMK) Number 37 of 2025 concerning the Appointment of Electronic Commerce Operators (PMSE) as Collectors of PPh Article 22. The appointment of marketplaces considers system readiness, transaction scale, administrative capacity, the use of escrow account mechanisms, and readiness for electronic tax collection and reporting.

Under this scheme, the marketplace collects PPh Article 22 at a rate of 0.5 percent of the seller’s gross turnover, excluding Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM). After a consumer makes a payment, the marketplace withholds the tax on the seller’s income, remits it to the state treasury, and then reports it via the Periodic Unified Income Tax Return (SPT Masa Unifikasi).

The collection only applies to sellers with an annual turnover exceeding Rp 500 million. For example, a seller recording a transaction of Rp 2 million through the marketplace will have PPh Article 22 deducted in the amount of Rp 10,000, or 0.5 percent of the transaction value.

According to Bimo, this levy is not an additional tax because it can be credited against the tax liability for taxpayers using the general scheme or form part of the settlement of Final Income Tax for business operators still using the MSME Final Income Tax scheme. The government stated that this change in the collection mechanism is aimed at improving tax compliance while supporting fairer governance in the digital economy.