Indonesia’s tax authority said on August 5 that it had delayed income tax withholding on domestic online sellers through ecommerce platforms until November 1, 2026, from the previously scheduled August 1 start.

The delay gives marketplaces and merchants more time to adjust their systems and tax administration.

The authority also said the move was meant to help protect consumer purchasing power.

Under Finance Ministry Regulation No. 37/2025, Shopee, Tokopedia, Lazada, and Blibli, which were appointed tax collectors on July 1, must withhold Article 22 income tax at 0.5% of a seller’s gross turnover, excluding value-added tax (VAT) and luxury-goods sales tax.

The platforms must then deposit the tax and report it to the authorities.

The rule applies to designated ecommerce operators, including those based inside or outside Indonesia with escrow accounts.

It changes how the tax is collected rather than creating a new tax.

The withholding can be credited in a seller’s annual tax return.

Individual sellers with annual turnover of up to 500 million rupiah (US$28,000) remain exempt if they submit a declaration to the platform.

The threshold is counted across all of a seller’s businesses and platforms. Some transactions are also excluded under separate tax rules.

🔗 Source: Kompas.com

Recent Shopee developments