PMK 37/2025: Marketplace to Withhold Taxes on Merchant Sales

With the enactment of PMK 37/2025, merchants can no longer simply open an online store without tax implications. The government has designated marketplaces or Electronic Trading System (PMSE) operators as the parties responsible for withholding Article 22 Income Tax on the sale of goods by domestic sellers.

This regulation took effect on June 14, 2025 and brings significant changes in the governance of digital transactions. In this article, the term merchant refers to business operators selling goods through digital platforms.

For merchants, this new rule adds administrative obligations and the potential for automatic tax withholding by the platform. Therefore, it is essential to understand the applicable criteria and procedures to avoid missteps in running an online business.

Merchant Turnover Monitoring Becomes More Integrated

Marketplaces are required to link seller accounts with the Taxpayer Identification Number (TIN) or National Identity Number (NIK) used during registration. This data will serve as the basis for withholding Article 22 Income Tax at a rate of 0.5% if turnover exceeds the specified threshold.

In addition, the Directorate General of Taxes (DGT) may access and consolidate data from various marketplaces to calculate the total turnover of merchants across platforms. This prevents manipulation of turnover data declared through the Turnover Statement Letter.

“For example, if a merchant sells on 10 platforms and claims on each that their turnover is only IDR 400 million, but once consolidated it is no longer IDR 400 million, but over IDR 4.8 billion. We will monitor this and use it as an educational tool for taxpayers,” said Yon (quoted from DDTC News).

If DGT data shows that actual turnover has exceeded IDR 500 million, but the merchant continues to submit a statement below the threshold, tax collection will be carried out directly on the merchant, not the marketplace.

“That is what we will collect from the merchant, not from the marketplace. As long as there is a statement letter from the merchant, the withholding obligation does not exist and no responsibility is assigned to the marketplace,” explained Yoga (quoted from DDTC News).

Article 22 Income Tax Withholding Scheme

Marketplaces will withhold 0.5% of sales turnover through the platform. This provision applies to merchants with annual turnover above IDR 500 million. The withholding may be final or non-final according to regulations.

Withholding does not automatically apply to all merchants. Below are the turnover thresholds:

Turnover above IDR 500 million per year: Marketplace must withhold Article 22 Income Tax at 0.5%.
Turnover at or below IDR 500 million: Merchants must submit a Turnover Statement Letter to avoid tax withholding.
Turnover exceeding IDR 500 million: Merchants must report the turnover to the marketplace. Tax withholding will apply as soon as turnover crosses the threshold.

Taxpayer Type	Annual Turnover	Withholding Rate	Income Tax Nature	Tax Treatment
Individual	Up to IDR 500 million	Not withheld	–	–
	IDR 500 million to IDR 4.8 billion	0.5%	Final (if eligible under PMK 55/2022) Non-Final (if not eligible or opting for general scheme)	Final or creditable in the Annual Tax Return
	Above IDR 4.8 billion	0.5%	Non-Final	Creditable in the Annual Tax Return
Entity	Up to IDR 4.8 billion	0.5%	Final (if eligible under PMK 55/2022) Non-Final (if not eligible or opting for general scheme)	Final or creditable in the Annual Tax Return
Entity	Above IDR 4.8 billion	0.5%	Non-Final	Creditable in the Annual Tax Return

Read Also: PMK 37 of 2025: Marketplace Officially Appointed as PPh Article 22 Withholder

Preparation Steps for Merchants

To avoid errors in withholding rates, merchants can take the following steps:

Prepare and submit a Turnover Statement Letter to the marketplace. The letter format is provided in Appendix A of PMK 37/2025. This document is used by merchants whose gross turnover does not exceed IDR 500 million per year to avoid Article 22 income tax withholding.
Regularly monitor turnover. Monitoring turnover is important, especially if transaction values approach the IDR 500 million threshold during the year. If turnover exceeds the threshold, merchants must report the change of status to the marketplace.
Keep withholding receipts issued by the marketplace. These receipts are important documents for annual tax administration and reporting.

Additionally, merchants can use the electronic systems provided by the government. Article 22 Income Tax withholding receipts can now be checked regularly through the Directorate General of Taxes’ Coretax and GENTA portals. With this facility, taxpayers have real-time access to verify the validity and amounts of monthly withholding.

Read Also: The Directorate General of Taxes Launches the GENTA Application

The Importance of Administrative Compliance

This policy is part of the government’s efforts to improve tax compliance in the e-commerce sector. Therefore, merchants need to proactively report turnover and prepare supporting documents. As a result, the risk of additional tax collection can be avoided.

If you need assistance preparing the Turnover Statement Letter or tax consulting, the Synergy Ultima Nobilus team is ready to help. Contact Us for further consultation.