Indonesia’s Directorate General of Taxes said on October 1 that PPh 22 income-tax collection on domestic merchants’ marketplace sales had begun. Shopee, Blibli, Tokopedia and Ecart Webportal, designated by the government, collect the amount during transactions. The rate is 0.5% of gross turnover, excluding value-added tax and luxury-goods sales tax.

The tax authority stressed that this is not a new tax, but a change in how an existing obligation is collected. Individuals with annual turnover of up to Rp500 million can be exempt from marketplace withholding if they submit the required declaration. Amounts withheld can be credited against tax due during the year or treated as payment of final income tax, under the applicable rules.