Government and House of Representatives Agree Online Merchants Will be Taxed 0.5% in 2027

The government and House Commission XI have confirmed that the 0.5% PPh Article 22 tax collection for online marketplace merchants will take effect in 2027 (2027 Draft State Budget) to ensure a level playing field with conventional traders. Marketplace platforms (Shopee, Tokopedia, etc.) will act as tax collectors on merchants' gross turnover, while a simplified Tax Exemption Statement (SPB) process will keep MSMEs with an annual turnover under IDR 500 million exempt.