AMZ123 has learned that Indonesia’s Directorate General of Taxes under the Ministry of Finance has confirmed that from November 1, Shopee, Tokopedia, Lazada, and Blibli will officially implement a withholding and remittance mechanism for seller income tax (PPh 22). The tax will be withheld at 0.5% of the total transaction amount when the buyer pays, and the tax base excludes VAT and luxury goods sales tax.

The policy is implemented under PMK Regulation No. 37. It has been postponed several times: originally scheduled for August 1, 2026, and later delayed to October 31. Taxes already withheld by platforms during the postponement will be refunded to local sellers.

Individual sellers with annual turnover of no more than IDR 500 million (about USD 30,000) may submit a declaration to apply for exemption; once exceeding that threshold, they must submit the corresponding declaration to the platform by the end of that month. Platforms must issue electronic withholding certificates for each transaction and file and pay monthly.

Notably, this rule does not create a new tax; instead, it shifts the income tax that sellers previously self-reported and paid to a direct withholding and remittance model handled by platforms at settlement. Sellers’ actual tax burden does not increase, but cash flow timing and compliance obligations will change. Previously, Indonesia had required MSME sellers to register on the government system Sapa UMKM to receive a 50% reduction in platform service fees. Tax compliance and fee incentives are gradually becoming linked. Cross-border sellers and local store sellers operating in Indonesia should promptly check platform tax information and their store entity status.

Source: AMZ123
Original link: https://www.amz123.com/kx/Rv6jD91g