“There are marketplace platforms in Singapore, China, Japan, and the U.S. where many Indonesian sellers operate. We can appoint them to collect Article 22 income tax at a rate of 0.5 percent,” Hestu Yoga Saksama, DJP's Director of Taxation I, stated during a media event as quoted in Jakarta on Tuesday.
The DJP had implemented a similar measure in 2020, appointing foreign e-commerce platforms as Electronic System-Based Trade Operators (PPMSE) to collect value-added tax (VAT). Hence, DJP believes the same approach can be applied to collect Article 22 income tax.
Saksama emphasized that the measure aims to address potential social inequalities between domestic and international sellers.
“This is to prevent local sellers from complaining and moving entirely to using foreign platforms,” he explained.
DJP stated it has been in discussions with several foreign marketplaces, encouraging them to start preparing the necessary system and other technical requirements.
Related news: E-marketplaces get two months to start collecting tax from sellers
“Looking back at what happened in 2020, the implementation did not take long. If I am not mistaken, the system was ready within two months. Even platforms in the U.S. and Europe were able to comply and were eventually appointed. We are confident that there won’t be any issues, and the process can be done quickly,” he stated.
Finance Minister Sri Mulyani Indrawati has signed Minister of Finance Regulation (PMK) No. 37 of 2025, dated June 11, 2025, and officially promulgated on July 14, 2025. The regulation appoints marketplace platforms as Electronic System-Based Trade Operators tasked with collecting tax from online sellers.
The Article 22 tax will be levied at 0.5 percent of the gross annual turnover, excluding value-added tax (VAT) and luxury goods sales tax.
The policy applies to merchants whose annual turnover exceeds Rp500 million (approximately US$30,700), with confirmation to be submitted via a new declaration letter to the appointed marketplace.
Sellers with annual turnover below that threshold are exempt from this tax. Exemptions also apply to certain sectors, such as online transportation and delivery services, mobile credit resellers, and gold traders.
Related news: Ministry plans automated data exchange to optimize tax revenue
Translator: Imamatul Silfia, Kuntum Khaira Riswan
Editor: Rahmad Nasution
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