business

DJP Reveals The Reason For Appointing E-commerce As Tax Collectors From Merchants

The Directorate General of Taxes (DJP) has articulated the rationale for designating electronic commerce (e-commerce) as the collector of income tax (PPh) 22 from merchants or traders.

This policy is officially governed by the Minister of Finance Regulation (PMK) Number 37 of 2025, which was established on July 11, 2025, and promulgated on July 14, 2025.

The Director of Counseling, Services, and Public Relations of DJP, Rosmauli, stated in Jakarta on Monday that the background for the issuance of this PMK is the rapid growth of trade through marketplaces in Indonesia, particularly following the COVID-19 pandemic, which has driven a shift in consumer behavior towards digital platforms.

This development is further supported by the high population of Indonesia, the increasing use of smartphones and the internet, as well as advancements in financial technology that facilitate online transactions.

Such conditions are said to create a continuously growing digital trade ecosystem.

"Therefore, regulations are necessary to promote ease of tax administration, especially for business actors engaging in transactions through electronic systems," Rosmauli remarked.

Additionally, the regulation aims to establish a level playing field between digital and conventional business actors. The DJP has indicated that similar tax policy practices have been implemented in several countries, including Mexico, India, the Philippines, and Turkey.

The core provisions of PMK 37/2025 mandate that traders provide information to the marketplace as a basis for tax collection.

PMK also stipulates a tax rate for PPh Article 22 at 0.5 percent, which may be either final or non-final.

The regulation further designates invoices as specific documents equivalent to evidence of withholding and/or collection of unified PPh.

Additionally, PMK includes provisions regarding the mechanism for the collection of PPh Article 22 by the marketplace on transactions conducted by traders in accordance with the sales invoice and the minimum data standards that must be included in the invoice.

Moreover, the marketplace is obligated to relay information to the DJP.

Rosmauli noted that the implementation of PMK 37/2025 simplifies tax collection on transactions in the marketplace, making it more systematic.

He emphasized that this regulation does not introduce a new tax but rather adjusts the method of tax collection from the previous manual approach to align with the digital trading system.

"The expectation is that the public, especially MSME actors, will find it easier to fulfill their tax obligations, be treated equitably, and contribute to the growth of a healthy and fair digital economy," he added.

---

Tag: Directorate General Of Taxes DJP Electronic Commerce