DGT has postponed Article 22 Income Tax collection by e-commerce platforms until 1 November 2026, with previously collected amounts to be refunded to domestic traders.
Indonesia’s Directorate General of Taxes (DGT) has postponed the implementation of marketplace obligations to collect Article 22 Income Tax from domestic traders until 31 October 2026, with the collection requirement now scheduled to take effect on 1 November 2026.
The delay follows the government’s decision to support public purchasing power amid economic conditions that remain a concern.
Marketplace appointments to be cancelled
The postponement concerns the implementation of Minister of Finance Regulation Number 37 of 2025 concerning the Appointment of Other Parties as Income Tax Collectors and the Procedures for Collection, Payment and Reporting of Income Tax Collected by Other Parties on Income Received or Earned by Domestic Traders through the Electronic Trading System mechanism.
The Director General of Taxes Decisions that have already appointed marketplaces as Article 22 Income Tax collectors will be cancelled. The DGT will issue new appointments after the postponement period.
The measure had previously designated marketplaces to collect Article 22 Income Tax from domestic traders conducting transactions through electronic trading platforms.
Refunds for tax already collected
The DGT also confirmed that Article 22 Income Tax already collected by marketplaces from Domestic Traders under the previously issued appointments will be refunded.
The refunds will be made by the marketplaces to the affected Domestic Traders.
The DGT’s decision follows the government’s earlier announcement to postpone the withholding requirement for online merchants. The measure applies to the marketplace collection mechanism established under Minister of Finance Regulation Number 37 of 2025.
Policy substance remains unchanged
The postponement does not alter the substantive provisions of the policy. Instead, it delays the date on which the collection mechanism becomes effective.
Minister of Finance Regulation Number 37 of 2025 remains the legal basis for the Article 22 Income Tax collection mechanism.
The regulation, published on 14 July 2025 following its issuance on 11 June 2025, introduced income tax withholding requirements for operators of e-commerce platforms and online marketplaces that facilitate transactions by domestic traders, subject to specified conditions.
The new collection provisions are therefore scheduled to begin on 1 November 2026, following the postponement through 31 October 2026.
This announcement was made on 5 August 2026.
