The government has ensured that the final Income Tax (PPh) rate of\n0.5 per cent for micro, small, and medium enterprise (MSME) actors is\nnow permanent through an amendment to Government Regulation (PP) Number\n20 of 2026. The Minister of Micro, Small, and Medium Enterprises\n(MSMEs), Maman Abdurrahman, stated that this policy was implemented to\nprovide certainty for business actors after previous incentives were\nonly extended periodically.<\/p>\n
\u201cThe only difference is that previously, extensions were limited to\none-year periods; now, it is open for as many years as needed in the\nfuture, so it is no longer restricted,\u201d Maman said during a press\nconference in Jakarta on Wednesday (3\/6\/2026).<\/p>\n
He added that there are no changes or increases to the tax rate for\nMSMEs. Business actors with an annual turnover below Rp500 million will\nstill be subject to a 0 per cent tax rate, while those with turnover up\nto Rp4.8 billion will be subject to the 0.5 per cent final rate.<\/p>\n
According to Maman, this permanent policy follows a directive from\nthe President to ensure MSME actors have business certainty and are no\nlonger shadowed by regulatory uncertainty. However, the government\ncontinues to make adjustments to ensure that incentives are accurately\ntargeted. Maman noted that evaluations over recent years revealed\npractices of abuse by large businesses, such as the splitting of\nbusiness entities to qualify for the 0.5 per cent final PPh facility.\nConsequently, the 0.5 per cent final PPh rate will remain available to\nindividual business actors with turnover below Rp4.8 billion, whereas\nnon-individual business entities, such as Limited Liability Companies\n(PT) and Limited Partnerships (CV), will have their taxes calculated\nbased on net profit.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/0-5-per-cent-msme-tax-made-permanent-corporate-entities-subject-to-new-scheme-1780844567", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }