Running an online store in Indonesia and seeing your monthly revenue grow? Congratulations! that’s a sign your business is thriving. But there’s an important update from the Ministry of Finance you need to pay attention to. Starting in July 2025, the government officially appointed several major e-commerce platforms to collect Income Tax 22 In Indonesia or PPh 22 from online sellers.
This means taxes are no longer just for big businesses. If you’re selling through Shopee, Tokopedia, Lazada, or Blibli, you should get ready because these digital platforms will now directly withhold taxes from your sales.
This regulation is outlined in the Ministry of Finance Regulation (PMK) Number 37 of 2025, effective as of July 14, 2025, which also coincides with National Tax Day.
Why Is There a New Tax for Online Sellers?
The government has observed that while Indonesia’s digital commerce ecosystem is growing rapidly, not all business players are part of the formal tax system. PMK 37/2025 aims to simplify the tax collection process while ensuring digital businesses contribute fairly to the country.
Read also: Retail Investors Now Rule Indonesia’s Stock Market
According to Bimo Wijayanto, Director General of Taxes, appointing e-commerce platforms as tax collectors isn’t meant to burden sellers. “In fact, it’s to help business owners — especially MSMEs — so they no longer need to calculate and pay taxes manually each month,” he explained.
Who Is Subject to Income Tax Article 22 in Indonesia?
Referring to Article 5 of PMK 37/2025, here are the criteria for domestic sellers who are subject to PPh 22:
- Domiciled in Indonesia – Business operators located or residing in the country
- Receiving income via bank account – All transactions recorded through formal financial systems
- Annual income above IDR 500 million – Must be declared to the platform via a signed statement
- Using an Indonesian digital identity – Such as an Indonesian IP address or phone number (+62)
- Selling goods or services online – Includes physical products, digital services, insurance, and shipping
If your store meets these criteria, get ready — your marketplace will begin applying PPh 22 collection on your behalf.
Who Is Exempt from Income Tax 22 in Indonesia?
Not every online seller is affected by this tax. The government provides several exemptions, including:
- Online motorcycle taxi (ojol) drivers
- Sellers of prepaid phone credit and SIM cards
- Sellers of gold jewelry and similar items
- Transfer of land and property rights
- Sellers with a PPh exemption letter (SKB)
- Sellers earning below IDR 500 million annually
Those in the exemption category simply need to submit a formal declaration to the platform to avoid automatic tax collection.
What Does This Mean for Your Business?
For many entrepreneurs, this regulation presents both a new challenge and a new opportunity. If handled properly, it can help you:
✅ Enter the formal business ecosystem
✅ Gain easier access to business financing (thanks to transparent financial data)
✅ Build stronger trust with investors and customers
✅ Avoid future tax penalties or administrative fines
However, staying on top of ever-changing tax rules isn’t easy — especially when you’re already managing day-to-day operations. That’s why partnering with a reliable tax service can make all the difference.
Let Bizindo Handle Your Tax Matters with Confidence
For many business owners, tax regulations often lead to confusion. Is your business already earning over IDR 500 million? What should you include in your tax declaration? How can you be sure the platform is withholding the correct amount? Do you still need to report to the tax office afterward?
These are real concerns we hear from entrepreneurs all the time. Most are not unwilling to comply, they’re just overwhelmed by fast-changing policies and unfamiliar tax terminology.
That’s where Bizindo comes in.
With Bizindo’s Tax Services, you’ll receive full support in:
- Consulting and analyzing your store’s tax status
- Preparing and submitting tax reports
- Drafting the exemption documents if you qualify
- Assisting during tax audits or clarifications
We believe that tax isn’t just an obligation — it’s an important part of building a healthy, sustainable business. By understanding both the requirements and the opportunities, you’ll make smarter decisions and stay focused on what matters most: growing your business.
Still unsure whether your business is subject to PPh 22, or where to start? Contact Bizindo today. We’ll help you understand everything clearly, without confusing jargon.
Because tax isn’t something to fear as long as it’s handled the right way.
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