The Indonesian government, through the Directorate General of Taxes (DGT), plans to begin collecting taxes from merchants selling through online marketplaces starting in July 2026. The policy is part of the government’s effort to create a fairer tax system between online and offline businesses.

Government Prepares Tax Collection for Marketplace Sellers

This tax collection policy was initially introduced under Minister of Finance Regulation (PMK) No. 37 of 2025. However, its implementation was postponed due to concerns over slowing economic growth. The government is now preparing to move forward with the policy, targeting implementation in July 2026.

Director General of Taxes Bimo Wijayanto stated that the policy will impose Article 22 Income Tax (PPh 22) on online merchants selling through e-commerce platforms such as Shopee, Tokopedia, and other marketplaces.

How Much Tax Will Be Collected?

Under the proposed policy, merchants will be subject to a 0.5% Income Tax (PPh) on their gross revenue (turnover). This amount will be withheld directly from transactions conducted through online marketplaces.

Who Will Withhold the Tax?

Merchants will not need to calculate or remit the tax themselves. Instead, the marketplace platforms will act as tax withholding agents, deducting the applicable tax directly from sales transactions and remitting it to the government.

Which Digital Platforms Are Affected?

The policy extends beyond online marketplaces. Currently, around 261 digital companies, both domestic and foreign, are registered under the government’s digital taxation framework. In addition to e-commerce platforms, digital services such as Netflix, Spotify, Google Play, and Disney are also included within the broader scope of digital tax regulation.

Why Is This Policy Being Introduced?

According to the government, the primary objective is to ensure tax fairness. Businesses operating physical stores are already subject to taxation, and the government wants to ensure that businesses generating income through digital platforms are treated equally under the tax system.

Will the Policy Definitely Take Effect in July 2026?

Minister of Finance Purbaya Yudhi Sadewa has stated that the government is targeting July 2026 for implementation, provided that Indonesia’s economic growth remains stable and reaches the expected target. The DGT has indicated that the regulatory framework is ready, and the final decision now rests with the Ministry of Finance.

Conclusion The planned 0.5% tax withholding on marketplace merchants represents the government’s effort to broaden the tax base while creating a level playing field between online and offline businesses. Although the target implementation date is July 2026, the policy’s rollout will still depend on economic conditions and final government approval.