Heaptalk, Jakarta — The widespread discussion on social media regarding the uncertainty of extending the 0.5% final income tax rate for micro, small, and medium enterprises (MSMEs) has prompted the Directorate General of Taxes (DJP) to address the issue.
According to Dwi Astuti, Director of Counseling, Services, and Public Relations at the Directorate General of Taxes (DJP), the 0.5% income tax rate remains in effect. However, taxpayers who have already utilized the 0.5% final income tax incentive for seven years (from 2018 to 2024) will no longer be eligible to use this rate.
“This is based on Government Regulation No.55 of 2022 on Adjustments to Income Tax Regulations, which reaffirms the imposition of a 0.5% final income tax rate for taxpayers with an annual gross turnover of up to Rp4.8 billion. Furthermore, under Article 60, Paragraph (2) of Government Regulation No.55 of 2022, the income of individual taxpayers with an annual gross turnover of up to Rp500 million is exempt from tax,” said Dwi.
In Article 59 of Government Regulation No.55 of 2022, the DJP stated that the final income tax regulation duration for taxpayers with a specific gross turnover is a maximum of seven tax years for individual taxpayers. Meanwhile, it is four tax years for taxpayers in the form of cooperatives, limited partnerships, firms, village-owned enterprises (BUMDes), or sole proprietorships established by one person. Additionally, it is three tax years for taxpayers in the form of limited liability companies.
This duration is calculated from the tax year of registration for taxpayers registered after Government Regulation No.55 of 2022 came into effect. For village-owned enterprises (BUMDes) or sole proprietorships established by one person registered before the enactment of Government Regulation No.55 of 2022, the calculation starts from the tax year when Government Regulation No.55 of 2022 became effective.
However, Article 69 of Government Regulation No.55 of 2022 also regulates transitional provisions regarding the calculation of the duration for imposing the final income tax on individual taxpayers and corporate taxpayers in the form of cooperatives, limited partnerships, firms, or limited liability companies registered before the enactment of Government Regulation No. 23 of 2018.
“This provision is calculated from the 2018 tax year until the end of the period specified in Article 5 of Government Regulation No. 23 of 2018, which is a maximum of: Seven tax years for individual taxpayers; Four tax years for corporate taxpayers in the form of cooperatives, limited partnerships, or firms; Three tax years for corporate taxpayers in the form of limited liability companies; or No longer meeting the criteria to be subject to the final income tax under Government Regulation No. 55 of 2022,” Dwi concluded.
