Tax Director Discusses Delay of E‑Commerce PPh 22 Rule

Tax Director Bimo Wijayanto told reporters on Monday, 20 October 2025, that the deadline for postponing the implementation of PPh 22 for e‑commerce merchants is still under review. He said the decision follows guidance from Finance Minister Purbaya Yudhi Sadewa.

Indonesia’s tax system is based on the self‑assessment principle, requiring taxpayers to calculate, report, and pay their own taxes. Under Ministerial Regulation No 37/2025, marketplace platforms are designated to automatically withhold tax on domestic merchants’ transactions, especially those with annual revenue above Rp500 million.

The rollout of the rule has been delayed until national economic growth is expected to reach roughly 6 percent, to avoid adding burden to micro, small, and medium enterprises (UMKM). Authorities will revisit the policy once growth indicators show a stronger recovery.