From 1 October 2026, Indonesia's largest marketplaces — Tokopedia, Shopee, Lazada and Blibli — plan to switch to new tax arrangements for sellers.
The platforms will withhold income tax themselves from payments processed through their systems.
The upcoming launch was announced by Bimo Wijayanto, Director General of Indonesia's tax office (DJP). According to him, the technical preparations on the part of both the tax authorities and the marketplaces have been completed. Detik Finance reported this on 16 September.
The new mechanism had previously been expected to take effect on 1 August, but the start date was pushed back. DJP has been carrying out the integration and testing of the system together with the marketplaces since last year, and the extra time was needed to finish the preparations.
How the withholding will work
The procedure is set out in Ministry of Finance Regulation PMK 37/2025, which governs income tax withholding in e-commerce.
Marketplaces designated as responsible for collecting the tax will withhold PPh Pasal 22 from sellers' income directly at the time of settlement. The platform will then transfer the withheld amount to the state budget and include it in the relevant tax filings.
That said, withholding through a marketplace does not mean an additional tax burden in every case. According to DJP's explanations, an amount paid this way may be taken into account when calculating the seller's tax liability, or credited under PPh Final. The exact treatment depends on the tax regime that applies to the business.
What changes for sellers
The main practical change concerns incoming payments. If a seller falls under the new mechanism, the revenue credited to their account will already be net of the amount the marketplace has withheld as tax.
For this reason, companies and entrepreneurs selling through Tokopedia, Shopee, Lazada and Blibli should assess in advance how the new rules will affect their cash flow. This matters especially when planning purchases, payments to suppliers and other regular expenses.
Before the mechanism takes effect, we recommend working with your accountant to:
- check marketplace messages and notifications about the start of tax withholding;
- determine whether the new rules apply to your business and whether there are grounds for an exemption;
- make sure the tax details and documents in your seller accounts are filled in correctly;
- set up bookkeeping for the amounts withheld by the marketplace;
- adjust your revenue forecast to reflect the new settlement arrangements.
Legal Indonesia can help you work out how PMK 37/2025 applies to your business, review your tax obligations and documents, and correctly account for amounts withheld by marketplaces in your bookkeeping and tax filings.
More details are available in the full version of this article on the Legal Indonesia website.
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