Tax Newsletter - E-commerce companies as income tax collectors

The Indonesian Minister of Finance released MoF Regulation No. 37 Year 2025 (“MoFR 37/2025”) enacted on 14 July 2025 which is followed by the DGT Regulation No. 15/PJ/2025 (“DGTR 15/2025”) enacted on 5 August 2025. It introduces e-commerce platform providers/e-commerce companies, which domicile within and outside Indonesia, as income tax collectors on transactions conducted by local merchants through electronic trading system. The regulations are expected to streamline the tax collection and filing for local merchants which mostly comprises micro, small and medium entrepreneurs. The tax withheld will be
treated as part of the tax obligation of the local merchants.