Indonesia: Income tax withholding obligations for e-commerce platforms and online marketplaces

Regulation No. 37 (PMK37/2025, effective July 14, 2025) introduced income tax withholding requirements for e-commerce and online marketplace operators.

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September 29, 2025

The Ministry of Finance in July 2025 published Regulation No. 37 (PMK37/2025, effective July 14, 2025), introducing income tax withholding requirements for e-commerce and online marketplace operators.

Both domestic and foreign operators who meet certain criteria must act as withholding agents for income received by domestic traders. The tax rate is 0.5% on gross turnover, excluding value added tax (VAT) and luxury goods sales tax. For domestic traders using the normal income tax scheme, Art. 22 Income Tax can be treated as a tax credit for corporate income tax purposes.

The Directorate General of Taxes (DGT) in August 2025 issued regulation No.PER – 15/PJ/2025 (PER-15/2025) implementing PMK-37/2025 that stipulates the threshold on certain criteria for domestic and foreign operators and appointment of income tax withholder. Domestic and foreign operators that have not been appointed as an income tax withholder but choose to be appointed as such, may submit a notification to the DGT.


For more information, contact a KPMG tax professional in Indonesia:

Diana Hutagaol | Diana.Hutagaol@kpmg.co.id

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