Online Trader Tax to Take Effect in July, Turnover Below Rp 500 Million Exempted

The collection of income tax (PPh) from merchants on e-commerce platforms will be implemented starting July 2026. However, the Directorate General of Taxes (DJP) has confirmed that not all online traders will be taxed through e-commerce platforms. Sellers with an annual turnover below Rp 500 million are exempt from tax collection. Meanwhile, traders with a turnover above Rp 500 million up to Rp 4.8 billion per year will still be subject to a final income tax (PPh) of 0.5%. This policy was originally targeted for implementation last year following the issuance of Minister of Finance Regulation Number 37 of 2025 concerning the Appointment of Other Parties as Income Tax Collectors and the Procedures for Collection, Deposit, and Reporting of Income Tax Collected by Other Parties on Income Received or Earned by Domestic Traders through Electronic Trading System Mechanisms. However, the government ultimately decided to postpone it. Director of Counseling, Services, and Public Relations at the DJP, Inge Diana Rismawanti, confirmed that the online shop tax is not a new tax imposed on sellers on e-commerce platforms. E-commerce platforms will be assigned as collectors of Income Tax Article 22 in e-commerce. Under the regulation, marketplace platforms are required to collect PPh Article 22 at a rate of 0.5% of the gross turnover of sellers transacting on their platforms. ‘What needs to be underlined is that the e-commerce tax is not a new tax. So, this has actually been in effect for a long time. The tax that will be applied to platforms later to become collectors is something that has been happening for a long time,’ Inge said at an UMKM Talkshow event at the Smesco Building, South Jakarta, on Wednesday (24/6/2026). Inge also assured that there would be no double taxation imposed on sellers. In fact, according to her, this mechanism makes it easier for sellers to report and pay taxes. Every tax deduction made by the e-commerce platform will be issued with an official withholding slip. The withholding slip will automatically enter each seller’s Coretax account and can be used as a tax credit when filing the Annual Tax Return. ‘There is no double deduction. In fact, the intention is that the platform helps the sellers, so you don’t have to bother paying taxes yourself. We’ll just deduct it, and here is the proof that we have deducted it,’ Inge explained. Furthermore, Inge explained that she has met with associations and e-commerce parties regarding the implementation of this policy. Currently, she cannot disclose which e-commerce platforms will be appointed as tax collectors. According to her, this will be decided by the Director General of Taxes, Bimo Wijayanto. ‘Of the many platforms in Indonesia, we have all held one-on-one meetings with the Director General of Taxes, but who will be appointed, we are waiting for the decision of the Director General of Taxes on who will be appointed as the collector,’ Inge clarified. Inge confirmed that not all sellers on online shops are taxed. Sellers with an annual turnover below Rp 500 million must not have their tax deducted by the platform. However, sellers with a turnover above Rp 500 million up to Rp 4.8 billion are still subject to a 0.5% PPh. ‘If the turnover has not reached Rp 500 million, the platform is not allowed to collect the income tax, it is not allowed,’ Inge said. For sellers with a turnover below Rp 500 million, Inge urged them to proactively provide a statement letter to the platform where they sell. This statement can be submitted in the form of a stamped declaration letter through the system provided by each platform. ‘So, every seller is expected to be honest. If their turnover is still below Rp 500 million, they must inform their platform. My turnover is still below Rp 500 million, so you do not need to deduct tax from the income I receive,’ Inge detailed. For sellers who open shops on multiple e-commerce platforms simultaneously, Inge stressed that all transaction data will still be integrated into the central tax system. ‘So, it doesn’t matter if they are on several platforms, as long as the name and NIK or ID are the same, it will definitely be collected by us so we can see whether they are entitled or not to use the half percent rate,’ Inge explained. Previously, Director General of Taxes Bimo Wijayanto confirmed that the policy of collecting income tax from online merchants by marketplaces will be implemented starting July 2026. Minister of Finance Purbaya Yudhi Sadewa has affirmed that the collection of PPh Article 22 for online traders selling through e-commerce platforms such as Shopee, Tokopedia, and the like will take effect this year. ‘It is requested for this year, July, hopefully,’ Bimo said at the DPR Building Complex on Wednesday (17/6/2026).