New PPh 22 for Marketplace Business: What Should You Prepare?

Indonesia’s PPh 22 rules for marketplace transactions are changing how the government collects income tax from online sellers. Under PMK 37/2025, designated marketplaces will collect PPh 22 directly from qualifying seller transactions, with the collection mechanism taking effect on November 1, 2026. 

The change doesn’t introduce a new tax type. However, it can affect marketplace payouts, accounting reconciliation, tax credits, documentation, and annual tax reporting, making preparation particularly important for companies with significant marketplace sales. 

Key Takeaways

• The marketplace PPh 22 collection starts on November 1, 2026, under PMK 37/2025. 
• Designated marketplaces will collect, deposit, and report PPh 22 at 0.5% on qualifying domestic seller transactions. 
• The 0.5% is calculated on gross turnover before sales discounts, excluding VAT and PPnBM. 
• Sellers still need to keep their marketplace, accounting, bank settlement, and tax records properly reconciled, even though the marketplace handles the PPh 22 collection mechanism. 
• PPh 22 collected may be treated as a tax credit or included in the final PPh settlement, depending on the seller’s applicable tax status. Detailed guidance on how to record and report this will help sellers ensure compliance and optimise their tax filings.

What Changes Under the New PPh 22 Collection Mechanism? 

Under PMK 37/2025, designated marketplaces will collect PPh 22 at 0.5% of gross turnover from qualifying seller transactions when they receive payment from the buyer. 

The change shifts some tax-collection responsibility from sellers to the marketplace. 

Area	Previous Approach	Under PMK 37/2025
PPh 22 collection	Sellers generally handled their applicable income tax obligations themselves.	Designated marketplaces collect PPh 22 from qualifying transactions
Collection rate	No marketplace-specific collection	0.5% of gross turnover
Calculation base	Based on the seller’s applicable tax obligations	Gross turnover before sales discounts, excluding VAT and PPnBM
Collection timing	Tax payment follows the seller’s applicable tax mechanism	Collected when the marketplace receives payment from the buyer
Marketplace responsibility	Mainly facilitates the transaction	Collects, deposits, and reports the PPh 22
Proof of collection	Seller relies on applicable tax payment/withholding documents	Marketplace invoice can serve as evidence of collection

The main impact for businesses is that marketplace payouts may now include an automatic PPh 22 deduction, which companies must record and reconcile correctly in their accounting and tax records.

Which Marketplace Sellers Will Be Affected? 

PMK 37/2025 applies to domestic marketplace sellers, including individuals and companies, that receive income through designated electronic trading platforms. The main groups affected are: 

• Corporate Sellers: Companies selling through designated marketplaces can be subject to the 0.5% PPh 22 collection. 
• Individual Sellers Above IDR 500 million: The collection applies to individual sellers once their annual turnover exceeds IDR 500 million. However, sellers below this threshold who meet specific requirements and submit the required declarations may be exempt from collection. Clarify how exemptions work to help sellers understand their responsibilities and avoid surprises. 
• Individual Sellers Up to IDR 500 million: Collection doesn’t apply if the seller meets the requirements and submits the required turnover declaration. 
• Sellers with an SKB: An applicable tax exemption certificate (Surat Keterangan Bebas) must be provided to the marketplace for the exemption to apply. 

Certain transactions are also excluded from marketplace collection, including specified delivery services, prepaid mobile products, certain gold and jewelry transactions, and certain land and building transactions. 

An exemption from marketplace collection doesn’t necessarily mean the income is exempt from income tax. Other tax obligations may still apply. 

READ MORE:

• Why You Need Qualified Tax Support to Address Your SP2DK Response Letter
• Strengthen Tax Representation in Indonesia under PMK 44/2026
• PPh 21 Employer Liability in Indonesia: Reduce Payroll Tax Risks

How Will Marketplace PPh 22 Affect Your Accounting and Tax Records? 

Under PMK 37/2025, the marketplace collects, deposits, and reports PPh 22. Sellers, however, remain responsible for keeping their accounting and tax records accurate and properly reconciled. 

PPh 22 Calculation 

Marketplace’s new collection mechanism is calculated as: 

Gross turnover before discounts, excluding VAT/PPnBM × 0.5% = PPh 22 

This means sales discounts, marketplace fees, and similar deductions do not reduce the calculation base. 

Seller Reconciliation 

For accounting purposes, sellers should be able to reconcile: 

Gross sales → discounts/refunds → VAT → marketplace fees → PPh 22 collected → net settlement 

Record each component separately so marketplace reports, accounting records, bank settlements, and tax reporting stay aligned. 

What Sellers Still Need to Record 

Sellers should ensure that: 

• Gross sales match marketplace transaction records. 
• Discounts, refunds, and cancellations are properly recorded and supported. 
• VAT, where applicable, is recorded separately. 
• Marketplace fees are separated from sales revenue. 
• The marketplace records PPh 22 collected under the correct tax treatment, either as a tax credit or as part of the final PPh settlement, depending on the seller’s tax position. 
• The marketplace retains marketplace invoices and correction documents as supporting tax records. 
• Net settlements can be traced back to the underlying transactions. 

The marketplace may handle the PPh 22 collection mechanism, but sellers still need accurate records to ensure their accounting, marketplace data, and tax reporting remain consistent. 

What Can Go Wrong If Records Do Not Align? 

If marketplace data, accounting records, and tax reporting don’t reconcile, businesses may miss tax credits, face incorrect tax treatment, report discrepancies, or struggle to trace deductions to individual transactions. 

These risks can grow for businesses with high transaction volumes or multiple marketplace accounts. 

What Should You Prepare Before the New Collection Starts? 

Before the new marketplace collection mechanism begins, sellers should align their tax position, marketplace data, and accounting records. Key areas to prepare include: 

• Confirming whether the marketplace applies to your business and transactions. 
• Making sure your NPWP or NIK and other marketplace tax information are accurate. 
• Understanding how to treat the new collection mechanism collected in your tax records. 
• Preparing any required declaration or exemption documents where applicable. 
• Reconciling sales, refunds, VAT, marketplace fees, PPh 22, and net settlements correctly. 
• Reviewing how marketplace transactions will be reflected in monthly and annual tax reporting. 

Preparing these areas early can help reduce reporting differences, missed tax credits, and reconciliation issues once the new mechanism takes effect. 

For businesses with more complex marketplace transactions, a tax review before implementation can also help identify where existing accounting or reporting processes may need adjustment.

Ascentium Indonesia Can Manage Your PPh 22 Accurately 

Marketplace tax compliance becomes more complex when a company has multiple sales channels, high transaction volumes, different product tax treatments, or accounting processes not designed to reconcile automatic PPh 22 collection. 

Ascentium Indonesia can help businesses prepare for the new collection marketplace mechanism by: 

• Assessing how marketplace tax rules apply to your transactions and tax position. 
• Reviewing marketplace, accounting, and tax records for inconsistencies. 
• Supporting reconciliation, tax credits, and ongoing tax reporting. 

Our tax team includes experienced professionals with USKP and Brevet certifications, helping businesses manage tax compliance with stronger technical support. 

Talk to our tax experts to assess your tax position. Fill out the form below for a free initial consultation. 

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