Indonesian marketplaces now withhold tax: does it apply to Chinese cross-border sellers?
Answer
Indonesia's tax office (DJP) says that from 2026-10-01 (brought forward from 1 November), four marketplaces withhold 0.5% income tax (PPh Article 22) on the turnover of domestic sellers, excluding VAT. The four are Shopee, Tokopedia, PT Global Digital Niaga (Blibli) and PT Ecart Webportal Indonesia. DJP says it is not a new tax. Under PMK 37/2025 the target is "domestic sellers (Pedagang Dalam Negeri)"; the official text does not say whether it applies to Chinese cross-border sellers.
- Applies to
- Sellers on Indonesian marketplaces.
Rules at a glance
| Item | Detail | Source |
|---|---|---|
| Start | 2026-10-01 (originally 1 November, brought forward) | DJP press release, 1 Oct 2026 |
| Tax and rate | Income tax Article 22, 0.5% of turnover, excluding VAT and luxury goods sales tax | Same |
| Marketplaces | Shopee, Tokopedia, PT Global Digital Niaga, PT Ecart Webportal Indonesia | Same |
| Who | Domestic sellers | Same; FAQ |
| New tax? | No | FAQ |
| Earlier postponement notice | Said 1 November; superseded by the 1 October release | Notice |
What you can do yourself
- If you sell as an Indonesian company or local store, expect 0.5% withheld on each sale from October; check it when reconciling.
- If you sell through a cross-border store, read the platform's notices and ask seller support whether and how it applies.
- Individual sellers with annual turnover up to IDR 500 million can file a statement to avoid withholding (per the official FAQ).
When to use a licensed professional
- If you have an Indonesian company and must file income tax, talk to a registered Indonesian tax consultant (konsultan pajak).
Check before you pay, and warning signs
- Claims that cross-border sellers are "always" or "never" withheld should come with the official text.
Unknowns
- The text of PMK 37/2025: not opened this time.
- Whether it applies to Chinese cross-border sellers: the text doesn't say; we don't guess.
- Whether PT Ecart is Lazada: not stated officially; only media say so.
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