POSTPONEMENT OF THE EFFECTIVE DATE OF ARTICLE 22 WITHHOLDING PROVISIONS BY MARKETPLACES

The Directorate General of Taxes (DGT) has announced that the implementation of Minister of Finance Regulation No. 37 of 2025 concerning the Appointment of Other Parties as Income Tax Collectors and the Procedures for the Collection, Deposit, and Reporting of Income Tax Collected by Other Parties on Income Received or Earned by Domestic Merchants through Electronic Commerce Systems has been postponed until 31 October 2026. Accordingly, the collection of Article 22 Income Tax (PPh 22) under the regulation will only take effect from 1 November 2026. The postponement is intended to support the Government’s efforts to maintain public purchasing power amid ongoing economic considerations, without altering the substance of the policy, but solely deferring its effective date. In connection with the postponement, the previous Decisions of the Director General of Taxes appointing marketplaces as PPh 22 collectors will be revoked and new appointments will subsequently be issued. Furthermore, any PPh 22 previously collected by marketplaces from Domestic Merchants under the previous appointments will be refunded by the respective marketplaces to the relevant Domestic Merchants. This information was conveyed by the Director of Tax Education, Services, and Public Relations, Inge Diana Rismawanti.