Indonesia Updates Digital Tax Rules for E-Commerce Sector

Regulatory Reforms: Between May–July 2025, Indonesia issued PERPRES-68/2025, PMK-37/2025, and PER-12/2025 to modernize digital taxation, mandating VAT collection on overseas sales and appointing e-commerce platforms as Article 22 income tax collectors.
PMK-37/2025 Impact: Domestic and foreign platforms meeting transaction or user thresholds must withhold 0.5% of sellers’ revenue, remit monthly, and report in unified returns, with exemptions for small taxpayers and specified categories to prevent double taxation.
PER-12/2025 & PERPRES-68/2025: VAT collectors must remit monthly, provide transaction-level reporting, and comply with currency-specific remittance rules. PERPRES establishes a digital VAT system for overseas sales. New NIP identifiers streamline compliance for foreign entities and organizations.