DJP States No One Can Refuse Tax Withholding Appointment

Jakarta, 5 November 2025 – The Directorate General of Taxes (DJP) said that any party directly involved in a transaction cannot refuse being appointed as a tax collector. The comment was made by Tax Regulation Director Hestu Yoga Saksama at a press briefing.

The authority to appoint lies with the Minister of Finance under Article 32A of the General Provisions and Tax Procedures Law (UU KUP). Consequently, any entity that facilitates a transaction, including digital platforms, may be designated to withhold, collect, remit and report taxes in accordance with the law.

The government plans to add more parties, such as marketplaces and crypto exchangers, as collectors of Article 22 income tax at a rate of 0.5 % although the implementation of Government Regulation No. 37/2025 has been postponed. This expansion aims to broaden the tax base and improve fiscal compliance.