Indonesia’s digital economy has enabled many sellers on platforms like Shopee and Tokopedia to grow their businesses.

However, new regulations confirm that these sellers must pay taxes if their annual turnover exceeds Rp500 million.

E-Commerce Sellers Included in Tax Regulations

According to Law No. 7/2021 on Tax Harmonization (UU HPP), all income, including from digital sales, is subject to taxation.

Sellers operating on e-commerce platforms must report and pay taxes on their income.

The relevant tax type is the Final Income Tax (PPh Final) for UMKM, with a rate of 0.5% on monthly turnover under Government Regulation No. 23/2018.

New Minister of Finance Regulation (PMK) No. 37/2025

On July 14, 2025, PMK No. 37/2025 came into force, introducing a specific tax collection scheme for e-commerce sellers.

Sellers with annual turnover above Rp500 million will be subject to Income Tax Article 22 (PPh Pasal 22) at 0.5% of gross turnover.

This tax is collected directly by marketplaces, designated as electronic trading system organizers (PMSE), such as Shopee and Tokopedia.

Sellers with turnover at or below Rp500 million per year are exempt from this tax but must still report their turnover to the platforms.

Reporting and Exceptions

Sellers must submit turnover evidence to the platforms regardless of their sales volume. Exceptions to the tax include sellers involved in:

• Delivery or logistics services as partners of technology-based companies
• Sales supported by tax exemption certificates
• Sales of prepaid credit and SIM cards
• Sales of gold jewelry, gold bars, or similar items by authorized businesses
• Transfer of land and building rights

The Role of Marketplaces and Government Objectives

Marketplaces are tasked with withholding the 0.5% income tax from sellers’ turnover.

This shift from self-reporting to marketplace collection aims to increase tax compliance and close gaps in the shadow economy, as stated by the Directorate General of Taxes.

Deputy Finance Minister Anggito Abimanyu explained that the policy seeks fairness between electronic and non-electronic commerce by utilizing data collected by marketplaces.

Rosmauli, Director of P2Humas at the Directorate General of Taxes, said,

“The regulation also encourages sellers to fulfill their tax obligations and improves oversight of digital economic activities”.

PHOTO: FREEPIK

This article was created with AI assistance.