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THE Directorate General of Taxes (DJP) revealed the reasons for appointing e-commerce companies to collect Article 22 income tax (PPh) from merchants. This policy is officially regulated by Minister of Finance Regulation (PMK) Number 37 of 2025, issued on June 11 and promulgated on July 14.
On Monday (07/14), 2025, Rosmauli, the Director of Counselling, Services, and Public Relations at the DJP in Jakarta, explained that the rapid growth of trade through marketplaces in Indonesia, especially after the pandemic, drove the issuance of this PMK. This shift in consumer behaviour toward digital has been significant.
This shift is fuelled by Indonesia’s substantial population, growing smartphone and internet usage, and the continuous development of financial technology that facilitates online transactions. These conditions have reportedly created a continuously growing digital-based trade ecosystem.
“Therefore, regulations are needed to facilitate tax administration, especially for businesses conducting transactions through electronic systems,” Rosmauli said.
Furthermore, these regulations aim to create a level playing field between digital and conventional businesses. The DGT stated that similar tax policies have been implemented in several countries, including Mexico, India, the Philippines, and Turkey.
The main regulation of PMK 37/2025 requires merchants to submit information to marketplaces for collection purposes. The PMK also stipulates a 0.5 percent Article 22 income tax collection rate, which can be final or non-final.
The regulation defines an invoice as a document that serves as proof of the withholding and/or collection of unified income tax.
The PMK contains provisions regarding the mechanism by which marketplaces collect Article 22 Income Tax for transactions conducted by merchants, as well as the minimum data standards that must be included in sales invoices. Furthermore, marketplaces are required to submit information to the DJP.
Rosmauli added that implementing PMK 37/2025 simplifies tax collection on marketplace transactions.
He emphasized that this regulation is not a new tax but rather an adjustment to the tax collection method, which was previously manual and has now been adapted to the digital trading system.
He concluded that we hope that the public, especially Micro Small and Medium Enterprises (MSMEs), will find it easier to fulfil their tax obligations, be treated equally, and contribute to the healthy and equitable growth of the digital economy.” [antaranews]
