The Indonesian Government has introduced a new rule that directly impacts the digital economy and online marketplaces. Under Minister of Finance Regulation No.37/2025 (PMK-37) and Directorate General of Taxes (DGT) Regulation No.PER-15/2025 (PER-15), certain e-commerce marketplaces are now required to act as collectors of Article 22 Income Tax (PPh 22) on domestic sellers’ transactions.
This update reflects the Government’s commitment to improving tax compliance in Indonesia’s fast-growing e-commerce sector, ensuring that both platforms and sellers contribute fairly to the country’s tax system.
Table of Contents:
1. What Is Article 22 Income Tax?
2. Who Will Be Appointed as a PPh 22 Collector?
3. Can Marketplaces Apply Voluntarily?
4. When Can Appointments Be Revoked?
5. Practical Implications for Businesses
6. Example Scenarios
7. How Logiframe Can Help
Article 22 Income Tax (PPh 22) is a type of withholding tax applied to specific transactions, including trade in goods and services. In this case, the responsibility to collect the tax shifts to e-commerce marketplaces, making them intermediaries between sellers and the tax authority.
An e-commerce marketplace, whether located inside or outside Indonesia, that uses escrow accounts to hold sellers’ income will be appointed as a PPh 22 Collector if they meet any one of these thresholds:
Transaction value with Indonesian customers exceeds IDR 600 million in 12 months, or IDR 50 million in one month; or
Platform access from Indonesia exceeds 12,000 users in 12 months, or 1,000 users in one month.
Once the thresholds are met, the DGT will issue an Appointment Decision, and PPh 22 collection will begin the following month.
Yes. Marketplaces that already meet the criteria but have not yet been appointed may submit a notification to the DGT through:
Their local Tax Office
The taxpayer portal
Other DGT-integrated systems
This proactive step allows marketplaces to comply early and avoid potential penalties.
The DGT may revoke the appointment if:
Revocation takes effect on the date stated in the Revocation Decision.
For E-Commerce Marketplaces:
System Readiness: Platforms must update systems to handle tax collection, remittance, and reporting accurately.
ERP Integration: Integration with accounting systems (such as Xero or NetSuite) can help automate compliance.
For Domestic Sellers:
Withholding Impact: Taxes will be withheld by marketplaces directly.
Documentation: Sellers need to reconcile their sales and tax records to avoid discrepancies.
A marketplace records IDR 70 million in monthly sales with Indonesian customers → It qualifies as a PPh 22 collector.
A platform gains 1,200 monthly users from Indonesia → It qualifies immediately as well.
These thresholds are not limited to large international platforms — local e-commerce businesses can also be affected.
At Logiframe, we understand the challenges of adapting to new tax rules in Indonesia’s fast-changing regulatory environment. We offer:
Tax outsourcing and compliance services to ensure marketplaces and sellers remain compliant.
Advisory services for e-commerce companies integrating Article 22 compliance into their operations.
ERP implementation and automation with Xero and NetSuite to reduce manual effort and compliance risks.