PMK 37/2025 Is Not a New Tax: What Online Merchants Need to Know

JurnalPost.com - The growth of digital commerce has brought significant changes to economic activity in Indonesia. The presence of various marketplace platforms has not only simplified buying and selling transactions but also created business opportunities for people to market their products more broadly. In line with this development, the government continues to adjust tax policies to keep pace with the dynamics of the digital economy.

One policy that has drawn attention is Finance Minister Regulation (PMK) Number 37 of 2025. This regulation governs the appointment of electronic commerce system operators or marketplaces as parties responsible for withholding Income Tax (PPh) on the income of domestic merchants.

The introduction of this rule sparked various questions, particularly among micro, small, and medium enterprises (MSMEs) operating online. Some merchants expressed concern over potential additional tax burdens that could affect their business revenue.

However, it is important to understand that PMK Number 37 of 2025 does not introduce a new type of tax. This regulation essentially changes the tax collection mechanism, shifting it from one previously handled independently by merchants to one managed through marketplaces appointed by the government.

PMK 37 of 2025 Does Not Add New Tax Types

Income Tax on business activities is not a new obligation that emerged following the issuance of PMK Number 37 of 2025. Before this regulation took effect, business actors, including online merchants, already had tax obligations in accordance with existing provisions.

The fundamental change in this rule lies in the collection procedure. The government has authorized certain marketplace operators to withhold, deposit, and report Article 22 Income Tax on merchant earnings.

With this mechanism, tax administration is expected to become simpler and more efficient. Merchants no longer need to handle the entire tax payment process independently for transactions processed through the platform.

Director General of Taxes, Bimo Wijayanto, in his official statement on 1 October 2026, emphasized that the policy does not create a new type of tax obligation.

“This policy regulates the collection mechanism for existing tax obligations. By involving marketplaces, we hope that fulfilling tax obligations will become easier, more orderly, and provide certainty for business actors,” said Bimo Wijayanto.

This policy is also part of the government's effort to create more equitable tax treatment between digital and conventional business actors.

PPh Withholding Rate of 0.5 Percent of Turnover

Based on PMK Number 37 of 2025, marketplaces appointed by the government withhold Article 22 Income Tax at a rate of 0.5 percent of the merchant's gross circulation or turnover as stated in the billing document.

This value does not include Value Added Tax (VAT) or Sales Tax on Luxury Goods (PPnBM).

As a simple illustration, if a merchant conducts a transaction with a gross circulation value of Rp1,000,000 that meets the withholding requirements, the Article 22 Income Tax withheld is Rp5,000.

This withholding does not mean merchants have to pay twice for the same tax obligation. The Article 22 Income Tax that has been withheld can be calculated as a tax credit or become part of the final Income Tax settlement, depending on the tax provisions applicable to each taxpayer.

Therefore, merchants still need to understand their business tax status to know how the withheld tax is accounted for in their annual obligations.

Merchants with Turnover up to Rp500 million Receive Exemption

One of the important provisions in PMK Number 37 of 2025 is the exemption from withholding for individual taxpayers who meet certain requirements and have a turnover of up to Rp500 million in one tax year.

This exemption does not apply automatically without administrative compliance. Merchants must submit a statement regarding their gross circulation amount to the marketplace in accordance with applicable regulations.

If business turnover exceeds Rp500 million in the current tax year, the merchant concerned must update their statement. Withholding is then carried out according to the mechanism and schedule determined in the regulation.

This shows that the government continues to consider the conditions of small business actors in the implementation of digital tax policies.

However, it is important to understand that this threshold relates to the exemption provision for Article 22 Income Tax withholding by marketplaces. Other tax obligations remain subject to the provisions applicable to each taxpayer's condition.

Implementation of Withholding Through Marketplaces

PMK Number 37 of 2025 legally took effect on 14 July 2025. Meanwhile, the implementation of Article 22 Income Tax withholding through marketplaces underwent a number of schedule adjustments.

Based on the official announcement from the Directorate General of Taxes on 1 October 2026, withholding began on that date after the government evaluated the readiness of the platform operators' systems and administration.

The four appointed operators are Shopee, Blibli, Tokopedia, and Lazada.

Thus, it is necessary to distinguish between the date the regulation took effect and the date of tax withholding implementation by marketplaceoperators.

For online merchants, the implementation of this policy requires diligence in managing business administration. Identity data, Taxpayer Identification Number (NPWP) or Population Identification Number (NIK), and tax documents must be ensured to be in accordance with the regulations.

Merchants also need to record turnover periodically, keep proof of withholding, and check the consistency of transactions with the tax withheld by the platform.

Towards More Orderly Digital Tax Administration

The implementation of PMK Number 37 of 2025 shows how Indonesia's tax system continues to adapt to technological developments and public trading patterns.

This policy is not just about shifting the tax collection process from merchants to marketplaceoperators, but is also part of an effort to increase transparency, legal certainty, and tax administration compliance.

Although it offers convenience, its implementation still requires understanding from business actors. Clear socialization and user-friendly administrative systems are important factors to ensure the policy does not cause confusion, especially for small merchants who are not yet accustomed to tax procedures.

Ultimately, PMK Number 37 of 2025 should be understood as a change in the tax collection mechanism, not the imposition of a new tax type. By understanding the rates, exemptions, and administrative procedures, online merchants can run their businesses more orderly while fulfilling tax obligations in accordance with applicable regulations.