If you sell products through Shopee, Tokopedia, Blibli, or Lazada, there is an important change to the tax withholding mechanism you need to understand. Starting October 1, 2026, the withholding of Article 22 Income Tax (PPh Pasal 22) through designated marketplaces will take effect.
This policy refers to Minister of Finance Regulation (PMK) No. 37 of 2025, which regulates the appointment of marketplaces as tax collectors for income earned by domestic sellers through electronic commerce.
So, what do sellers need to know? Here are five key points to keep in mind.
1. Tax Withholding Takes Effect on October 1, 2026
The government will begin implementing Article 22 Income Tax withholding through marketplaces on October 1, 2026. Previously, the implementation of this policy had been postponed to consider economic conditions and platform readiness.
With the policy taking effect, sellers need to understand how the tax will be withheld and how it may affect transaction records and the proceeds they receive from sales.
2. The Withholding Rate Is 0.5% of Gross Turnover
The Article 22 Income Tax withheld by marketplaces is set at 0.5% of gross turnover stated in the invoice, excluding Value Added Tax (VAT/PPN) and Luxury Goods Sales Tax (PPnBM).
For example, if the gross turnover subject to withholding amounts to IDR 10,000,000, the Article 22 Income Tax withheld will be IDR 50,000.
Therefore, sellers need to understand the tax calculation basis and review their transaction details to ensure accurate financial records.
3. Four Marketplaces Have Been Appointed as Tax Collectors
The government has appointed four marketplace operators to withhold Article 22 Income Tax:
- Shopee
- Tokopedia
- Blibli
- Lazada
Under this mechanism, the marketplaces are responsible for collecting, depositing, and reporting the tax in accordance with the applicable regulations.
If you sell through these platforms, it is important to check the withholding information and tax withholding receipts available on your account to ensure your tax administration is properly managed.
4. Individual Sellers with Annual Turnover of Up to IDR 500 Million May Qualify for an Exemption
Not every individual seller is automatically subject to Article 22 Income Tax withholding through marketplaces.
Individual taxpayers with annual gross turnover of up to IDR 500 million may qualify for an exemption from withholding, provided they meet the applicable requirements and submit the required statement letter to the marketplace.
Therefore, sellers should verify their annual turnover and ensure that all required documents have been submitted to the platform. Otherwise, they may miss out on a tax facility they are eligible to use simply because the administrative requirements have not been fulfilled.
5. This Is Not a New Tax, but a Change in the Withholding Mechanism
Another important point is that this policy does not introduce a new type of tax. PMK No. 37 of 2025 changes the withholding mechanism, shifting the process from sellers handling the tax themselves to designated marketplaces withholding it on their behalf.
The Article 22 Income Tax withheld must also be accounted for in accordance with the applicable tax regulations.
For sellers using the applicable Final Income Tax (PPh Final) scheme, the amount withheld may be credited against their Final Income Tax payable, subject to the relevant provisions. Meanwhile, for sellers who do not qualify for that scheme, the withholding may be treated as a tax credit in their Annual Tax Return (SPT Tahunan), in accordance with the applicable regulations.
Therefore, sellers should keep their tax withholding receipts, maintain proper transaction records, and ensure that their tax obligations are calculated correctly.