Starting Now, E-commerce Must Collect PPh From Sellers

Illustration: Photo: Doc. ANTARA

JAKARTA - The government officially requires e-commerce platforms to collect Income Tax (PPh) from domestic business actors who sell online.

This provision is contained in the Minister of Finance Regulation (PMK) Number 37 of 2025 which was signed by the Minister of Finance Sri Mulyani on June 11, 2025 and this regulation has been in effect since the date of promulgation, namely July 14, 2025.

As for the regulation, Sri Mulyani explained that to facilitate community participation in development through tax payments, fulfill the principles of legal certainty, justice, ease and simplicity of administration, as well as increase efficiency and effectiveness of tax collection, it is necessary to arrange arrangements for the appointment of other parties who are trade providers through electronic systems as income tax collectors.

"As well as procedures for collecting, depositing, and reporting income taxes on income received or obtained by domestic traders using a trading mechanism through electronic systems," reads the regulation, Monday, July 14.

Therefore, this PMK appoints Trade Organizers Through Electronic Systems (PPMSE) who live or have positions within the territory of the Republic of Indonesia and outside the territory of the Republic of Indonesia that meets certain criteria.

Certain criteria as referred to are Trade Organizers Through Electronic Systems that use an escro account (escrow account) to accommodate PPh article 22 and have transaction value with the use of electronic facilities used for transactions in Indonesia exceeding a certain number in 12 months and/or having traffic numbers or accessors exceeding a certain number in 12 months.

Through this regulation, the marketplace is required to collect PPh of 0.5 percent from the gross circulation of sellers.

However, individual business actors with annual turnovers below Rp500 million who submit a statement will be exempt from the obligation to collect.

"For income received or obtained by domestic traders in connection with transactions carried out through PPMSE, PPh 22 is collected," reads Article 7 paragraph (1).