Indonesia Requiring E-Commerce Platforms and Online Marketplaces to Withhold Income Tax

Indonesia published Ministry of Finance Regulation No. 37 of 11 June 2025 (PMK37/2025) on 14 July 2025, introducing income tax withholding requirements for operators of e-commerce platforms and online marketplaces (platforms) that facilitate transactions. The regulation establishes that both domestic and foreign operators are required to act as income tax withholding agents for transactions conducted on their platforms by domestic traders selling goods or services in Indonesia. Domestic oper…