Tax Office: E-Commerce Platforms to Refund Taxes Already Collected from Merchants

The Directorate General of Taxes (DGT) at the Ministry of Finance has confirmed that it will refund taxes already collected from online merchants by e-commerce platforms, following the imposition of the levy since 1 August 2026.

This refund is being made after Finance Minister Purbaya Yudhi Sadewa decided to cancel the income tax (PPh) Article 22 collection scheme for online merchants as of today, Wednesday (5/8/2026).

“PPh Article 22 that has been collected by marketplaces from Domestic Merchants in connection with the previously issued appointment will be refunded by the marketplace to the Domestic Merchants,” according to DGT Announcement Number PENG-46/Pj.09/2026.

In the announcement issued by DGT Director of Counselling, Services, and Public Relations Inge Diana Rismawanti, it was also stated that the appointment of e-commerce platforms as collectors, which had been determined by the Director General of Taxes since 1 July 2026, has been revoked.

“The Director General of Taxes’ decision regarding the appointment of marketplaces as PPh Article 22 collectors that has been issued will be revoked and a new appointment will be made,” as stated in the announcement released this evening.

The Directorate General of Taxes emphasised that the implementation 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 Merchants through Electronic Trading Mechanisms has been postponed until 31 October 2026.

Furthermore, the collection of PPh Article 22 based on these provisions will take effect on 1 November 2026.