Indonesia’s Finance Ministry is finalizing a rule that would require digital marketplaces to collect a 0.5 percent income tax on behalf of online sellers earning over Rp 500 million annually.
The income tax, covered under Article 22 of the Income Tax Law, would be withheld directly by platforms instead of sellers reporting and paying independently.
Under the policy, marketplaces and retail aggregators will serve as tax collectors. Rosmauli, a director at the Directorate General of Taxes, said this marks a change in the payment process but not in the tax obligation itself.
The tax would only apply to sellers whose yearly income exceeds Rp 500 million. Micro, small, and medium enterprises below that threshold would be exempt.
Officials said the goal is to make tax compliance easier and reduce informal business activity. By embedding tax collection into the platforms, sellers would no longer need to manage it on their own.
The Finance Ministry believes this will help improve compliance and ensure taxes reflect business size. Rosmauli noted that many sellers are unaware of their obligations or find the current system too complicated.
The draft regulation has included input from industry players, ministries, and agencies. The government said it will provide full details and guidance once the rule is officially issued.
