Marketplace Art. 22 Income Tax, Sellers to Activate Coretax Accounts

JAKARTA, DDTCNews - Online merchants (sellers) need to ensure that their accounts and authorisation codes on coretax have been activated ahead of the collection of Article 22 Income Tax by marketplace providers.

The Directorate General of Taxes (DGT) has explained that activation of accounts and authorisation codes on coretax is required to facilitate the process of collecting Article 22 Income Tax on income derived from the sale of goods and/or services through a marketplace.

"To facilitate the Article 22 Income Tax collection process, every seller intending to conduct transactions on a marketplace is required to activate their account and enable the authorisation code in coretax," the DGT wrote in an FAQ on MoF Reg. 37/2025, cited on Thursday (23/7/2026).

Through MoF Reg. 37/2025, the government requires marketplace providers to collect Article 22 Income Tax on the income of domestic sellers. Article 22 Income Tax is collected at a rate of 0.5% of the gross turnover received or accrued by the seller as stated in the buyer's invoice documents, excluding value added tax (VAT) and sales tax on luxury goods (STLGs).

The DGT has also appointed 4 marketplace providers as collection agents, namely Tokopedia, Shopee, Lazada and Blibli, effective 1 July 2026. The 0.5% tax collection will take effect from 1 August 2026.

Nevertheless, not all individual sellers will immediately be subject to Article 22 Income Tax collection. Domestic individual sellers with a turnover of up to IDR500 million in the current year may submit a statement letter to the marketplace stating that their turnover remains below that threshold.

By submitting such a statement letter, a seller may be exempted from the collection of Article 22 Income Tax.

Subsequently, the marketplace provider will issue an invoice for transactions that includes information on the amount of Article 22 Income Tax collected. The invoice document constitutes a document treated as equivalent to Article 22 Income Tax collection receipts.

Once the Article 22 Income Tax collection has been filed in the coretax withholding receipts issuance system, sellers from whom Article 22 Income Tax has been collected will also receive collection receipts in their respective coretax accounts.

Article 22 Income Tax collected by the marketplace provider may be credited as an income tax payment for the current year for the seller. This implies that a seller may credit the Article 22 Income Tax collected by the marketplace provider against their annual income tax return each year after the end of the tax year period.

For sellers subject to final income tax, the collection of Article 22 Income Tax by the marketplace provider constitutes part of the settlement of the final income tax. (dik)