Marketplaces Must Also Collect Tax on Shipping and Insurance
JAKARTA, DDTCNews - The 0.5% Article 22 Income Tax on marketplace trading is not levied solely on the gross turnover of merchants.
The collection of Article 22 Income Tax also applies to parties other than merchants, given that the definition of domestic merchants under the Minister of Finance Regulation (MoF Reg.) 37/2025 is not limited to merchants alone.
Referring to Article 5 paragraph (2) of MoF Reg. 37/2025, courier or forwarding companies, insurance companies and other parties that transact with buyers of goods/services through a marketplace are also categorised as domestic merchants.
"Included in domestic merchants referred to in paragraph (1) are courier or forwarding companies, insurance companies and other parties that conduct transactions with buyers of goods and/or services through electronic commerce," reads Article 5 paragraph (2) of MoF Reg. 37/2025, as cited on Thursday (2/7/2026).
Because courier or forwarding and insurance companies referred to in Article 5 paragraph (2) are also categorised as domestic merchants, their income is likewise subject to Article 22 Income Tax at 0.5% of the gross turnover received as stated in the invoice, excluding value added tax (VAT) and sales tax on luxury goods (STLGs).
As an example, PT HAN sells 5 shirts at IDR1.5 million through marketplace JB. The shirts are delivered using the courier service of PT FQ at a delivery charge of IDR50,000. The buyer of the goods opts to use the insurance service of PT YS at a cost of IDR10,000.
In this case, marketplace JB is obliged to collect Article 22 Income Tax from PT HAN on the shirt sales of IDR1.5 million x 0.5% = IDR7,500, from PT FQ on the delivery service of IDR50,000 x 0.5% = IDR250 and from PT YS on the insurance service of IDR10,000 x 0.5% = IDR50.
The 0.5% Article 22 Income Tax collected by the marketplace may be credited by the domestic merchant as a current-year income tax payment or as part of the settlement of final income tax.
For information, the government has designated Tokopedia, Shopee, Lazada and Blibli as Article 22 Income Tax collection agents. The four marketplace providers concerned are required to collect Article 22 Income Tax from 1 August 2026. (dik)
