The information on this page is only applicable for businesses in Indonesia.
Withholding Tax (WHT) is a tax mechanism implemented by the Indonesian government to collect income tax directly at the source of income. Under Article 23 of Law Number 7 of 1983 concerning Income Tax (amended by Law Number 36 of 2008), payers are required to withhold a certain percentage from payments made to payees. This withheld amount is then remitted directly to the government, ensuring tax compliance and efficient tax collection.
When Xendit provides payment services to Indonesia merchants, the merchant must:
Withhold the applicable tax from Xendit’s service fees.
Remit the tax to the government.
Issue withholding tax slips to Xendit as proof.
Withholding tax for indirect fees
You can request a 2% Withholding Tax (WHT) deduction on your total outstanding bill amount by contacting us at help@xendit.co. Once your request is approved, you can easily enable or disable this feature in your billing settings. To access this option, click on the gear icon on your Billing Statements page.
Once this feature is activated, you will be enabled to pay 98% of outstanding bills in the bill payment modal.
Bill Payment Modal
After a payment of 98% of the bill amount, the bill status will remain
unpaid, while the Withholding Tax column will include aPartially paidstatus pill.Once you have uploaded your Withholding Tax Slip and it has been processed by Xendit, the status of the bill will be updated to
paid.
Withholding tax for direct deduction
In this scenario fees are deducted from your transaction at settlement time. Once you have uploaded your Withholding Tax Slip and it has been processed, the amount will be sent to your Available Xendit balance.
How to upload your Withholding Tax Slip
Navigate to Settings > Billing and Fees > Billing Statements.
Find the invoice associated with your WHT and click Upload Withholding Tax Slip.
Upload your Withholding Tax Slip in PDF format (maximum file size: 1MB).
You will receive an email notification once your Withholding Tax Slip has been approved. If your submission is rejected, please review the information, make necessary corrections, and re-upload the slip.
Note: Upon approval, our team will process the reimbursement or adjustment within a maximum of 5 working days.
View withholding tax for direct deduction in Dashboard
Merchants can refer to the Balance History Tab in their Xendit Dashboard.
Download the data for the required date range to confirm or record fees.
Create a pivot table to organize data using:
Line Type
Amount
View withholding tax for indirect fees
Merchants can refer to the Billing Statement provided by Xendit.
FAQ
What is a Withholding Tax Slip (Bukti Potong PPh 23)?
A Withholding Tax Slip is an official document that serves as proof of the tax amount withheld by the payer. It includes details like the amount of income paid, the tax withheld, and information about both the payer and payee. This slip is crucial for tax reporting and compliance under Indonesian tax laws.
Why should I submit my Withholding Tax Slip?
Submitting your Withholding Tax Slip ensures compliance with Indonesian tax regulations and allows us to accurately process your transactions, including any necessary adjustments to your billing balance.
Who is eligible to make Withholding Tax deductions?
Both corporate entities and individuals conducting transactions subject to WHT under Article 23 are eligible—and in some cases, required—to make Withholding Tax deductions. For detailed information, please refer to the relevant tax laws.
What types of services are subject to Withholding Tax under Article 23?
Services categorized under Article 23 include intermediary services, agency services, and other specific services outlined in the tax regulations. Payments for these services are subject to a 2% Withholding Tax.
When is the right time to upload my Withholding Tax Slip?
You should upload your Withholding Tax Slip after making the payment for the invoice associated with the WHT.
What is the deadline for submitting the Withholding Tax Slip?
We encourage customers to submit their WHT Slips promptly after making a payment. The validity period for WHT Slips for the current tax year is until April 15 of the following year. After this date, we will no longer accept Withholding Tax Slips from past years.
What happens if I miss the submission deadline?
If you fail to submit the Withholding Tax Slip before the deadline, we will be unable to process it due to regulatory constraints. You may need to revise the tax period to the current one or make a payment for the outstanding amount.
What should I do if my submission keeps failing?
Ensure that all the information on the Withholding Tax Slip is accurate and matches the details on the associated invoice. Correct any discrepancies and try re-uploading the file.
Can I submit my Withholding Tax Slip through email or WhatsApp?
No, starting February 15, 2024, we will only process Withholding Tax Slips submitted via the Xendit Dashboard. Please kindly ensure you already have “View” and “Approve” access to your Xendit Dashboard.
I've previously submitted my Withholding Tax Slips through email. Should I re-upload them?
If you submitted your Withholding Tax Slip before February 15, 2024, you do not need to re-upload it. For submissions after this date, please use the Xendit Dashboard.
Can I submit one Withholding Tax Slip for multiple invoices?
We recommend creating and submitting one Withholding Tax Slip per invoice ID. Submitting a single slip for multiple invoices may result in longer validation times.
Which value should be used as the basis for the 2% Withholding Tax under Article 23?
The Withholding Tax (PPh 23) is calculated at 2% of the Tax Base (DPP), which is the subtotal amount indicated on the invoice.
What tax code should I use to report PPh 23?
Refer to the applicable tax regulations or use tax code 24-104-18 for Intermediary Services and/or Agency, which relates to the services we provide.
What if the Tax Base on the Withholding Tax Slip differs from the subtotal on the invoice?
Ensure that the Tax Base amount on the Withholding Tax Slip matches the subtotal on our invoice. Any discrepancies may delay the validation process.
We have made a payment with a 2% deduction for PPh 23, but our billing status still shows unpaid.
The billing status will change from "Unpaid" to "Paid" once you upload the Withholding Tax Slip to the platform and we validate it. We will then adjust your billing balance accordingly.
We have made a full payment, and our billing status shows "Paid". Do we still need to submit the Withholding Tax Slip?
Yes, if you are eligible and required to withhold income tax (PPh 23), you are still obliged to pay and report it for our services. Please upload the Withholding Tax Slip to ensure compliance.
What about the Withholding Tax Slip we have already reported for the invoice we have paid?
Please upload the Withholding Tax Slip on the platform. After validation, we will adjust your cash balance accordingly.
I haven't made the payment yet, but I have already issued the Withholding Tax Slip. I am unable to upload it on the Billing Statements page. What should I do?
According to our internal regulations, we cannot process the Withholding Tax Slip if payment for the associated invoice has not been made. Please make the payment first, and then proceed to upload the Withholding Tax Slip.