Article 22 Withholding Tax for E-marketplace Sellers

Important Update on PPh Article 22 WithholdingFollowing the latest government direction on the postponement of the 0.5% PPh Article 22 withholding requirement for marketplace sellers, the platform has stopped further withholding effective 6 August 2026 at 17:00 (GMT+7).For any amount that was previously withheld from your transactions. The withheld amount is expected to be refunded back to your seller account through an account adjustment by 30 September 2026.
The actual timing may vary depending on the processing progress and when the adjustment is reflected in your account. No action is required from sellers. Once completed, the adjustment can be viewed in the relevant account or transaction section.
The platform remains fully committed to complying with government regulations and will continue to implement any further guidance from the relevant authorities.

What is the Income Tax Article 22 Collection under PMK 37?

The Income Tax Article 22 Collection under PMK 37 ("Withholding Tax") refers to the tax amount that the platform shall deduct from the sales of goods/services of covered sellers to be remitted to the Ministry of Finance. The amount deducted as Income Tax Article 22 may be claimed by the sellers as tax credits in their corporate income tax return.
Sellers who meet any of the following criteria will not be subject to the Withholding Tax.

• If the annual total sales of goods/services of an individual or sole trader seller in a taxable year has not exceeded Five hundred million rupiah (Rp 500 million); or
• An online seller is subject to a 0% withholding tax rate if the seller is entitled to a tax exemption or a reduced income tax rate under applicable laws or tax treaties, provided that valid supporting documents (SKB PPh 22) are submitted to the platform.
• If a product is exempt from Withholding Tax if it falls under the list of withholding-tax-exempt products. Sellers may find the list of withholding tax exempted products below.

How is the Withholding Tax calculated?

The Withholding Tax is 0.5% of the sales of goods/services by the platform to all covered sellers for the goods sold on the platform.

Formula

• If the seller is VAT-registrant:
  • Withholding tax = (Original product price - seller discount)/(1 + 11% VAT rate) * 0.5%
• If the seller is not VAT-registrant
  • Withholding tax = (Original product price - seller discount) * 0.5%

Calculation Example

Note: Sellers must ensure that their tax information (VAT Status, Tax ID (NPWP/NIK) and Billing Address) on the tax information page of the Seller Center is correct and updated.

How to Apply for Withholding Tax Exemption

Starting 13 July, 2026, sellers can start submitting documents to apply for withholding tax exemption.

For Individual Sellers

Individual sellers (including sole traders) are subject to the withholding tax exemption if the annual total sales of goods/services of the seller in a taxable year have not exceeded Five hundred million rupiah (Rp 500 million).
In order to apply for this exemption, individual/sole trader sellers can go to the Seller Center > Finance > Tax Exemption page, and submit a statement letter under the "Statement letter" section.
The statement letter must be in pdf format, and is less than 10 MB in size. A sample of the statement letter can be found below

Sellers' Statement Letter Template .pdf

(76.8 KB)

Note: sole traders who previously registered as "corporate/enterprise" on the platform must declare their individual status before they can submit their statement letter. Simply click "declare" on the information banner and confirm. The individual status declaration will be reviewed before sole traders can start submitting their statement letter for tax exemption.Alternatively, individual and sole trader sellers who have a tax exemption document of PPH PASAL 22 are also exempted from withholding tax. Sellers can upload their tax exemption document under the "Tax exemption documents" section of the Seller Center > Finance > Tax Exemption page.
The tax exemption document must be in pdf format, and is less than 10 MB in size. A sample of the tax exemption document can be found below

SKB PPh Pasal 22 Sample.pdf

(173.9 KB)

For Corporate Sellers

Corporate sellers who have a tax exemption document of PPH PASAL 22 are exempted from withholding tax. Sellers can upload their tax exemption document under the "Tax exemption documents" section of the Seller Center > Finance > Tax Exemption page.
The tax exemption document must be in pdf format, and is less than 10 MB in size. A sample of the tax exemption document can be found below

SKB PPh Pasal 22 Sample.pdf

(173.9 KB)

Official Documents from the Tax Department

Please refer here to watch the official video, or refer to the official slides from the Tax Department below regarding the withholding tax.

SLIDE PRESENTASI - PMK-37 Tahun 2025 dengan Contoh Kasus 3.2 rev2.pdf

(2.0 MB)

FAQ PMK 37 Tahun 2025_Versi 1_tanggal 1 Juli 2026.pdf

(5.4 MB)

FAQs

1. When will the Withholding Tax deduction start?

• In compliance with the Ministry of Finance's PMK 37/2025, the withholding tax takes effect starting 1st August, 2026 on the basis that Director General of Taxation ("DGT") issues the formal appointment letter to platform in July 2026.

2. What should sellers do until then?

• Update tax information. Sellers must ensure that their tax information (VAT Status, Tax ID (NPWP/NIK) and Billing Address) on the tax information page of the Seller Center is correct and updated.
• Submit tax exemption document on the tax exemption page if applicable. Documents include:
  • A valid income tax exemption document (SKB PPh 22), or
  • A statement letter stating the annual turnover is below Rp500 million, if sellers are individuals or sole traders.
    • Currently, sole traders are classified as individuals on the platform; however, some sole traders might have previously registered as corporate/enterprise. Sole traders can declare their individual status on the Tax exemption page.

3. What will the platform do with the amount deducted as Withholding Tax?

• The Withholding Tax to be collected by the platform will be remitted to the Ministry of Finance on a monthly basis.

4. If an order is returned/refunded, will the Withholding Tax be refunded to the seller?

• Yes, the withholding tax will be refunded to the seller if the order is returned/refunded.

5. Will the platform provide evidence that it has collected the Withholding Tax from sellers?

• Yes, the platform will provide sellers with a document equivalent to an Income Tax Article 22 Withholding Slip under PMK 37/2025, as evidence that it has collected the Withholding Tax from sellers. The form shows sellers' tax ID (NPWP/NIK), billing address, and the company which is provided with the tax information, and the amount deducted from their sales as Withholding Tax. The document will be issued on a monthly basis.
• The document can be downloaded on the Seller Center > Finance > Tax Document page.
  

6. Will platform report other information of sellers to DGT?

• Yes. As per PMK 37/2025 platform is obliged to report the following information of sellers to DGT on a monthly basis, including:
  • Name, Taxpayer Identification Number (NPWP) or National Identity Number (NIK), and/or correspondence address of sellers;
  • Data and/or information contained in the statement letter and/or SKB PPh 22 letters provided by sellers;
  • Order-level detailed data and/or information, including seller's account name, goods sales turnovers per order, etc.
  • Withholding tax amount deducted and remitted to DGT per month per seller.

7. May I know the reason why my tax exemption certificates are rejected?

Please note : The Statement Letter (for eligible individual sellers with annual turnover up to IDR 500 million) and the Tax Exemption Certificate (SKB) are two different documents under PMK 37/2025. Please ensure that you upload the correct document based on your tax status. In addition, the reasons for rejection are as follows and you can find it in the seller center: