Income tax on small businesses slashed by 50%
The House of Representatives and the government have agreed to reduce income taxes by 50% of normal tariffs for micro, small and medium businesses which have legal entities, Antara reported.
The reduced income tax tariff was given to taxpayers with a business turnover of Rp4.8 billion ($526,451) to Rp50 billion per annum, Drajat Wibowo, a member of the House's working committee on the income tax bill, said at the weekend.
For example, he said, if a resident taxpayer had a business turnover of Rp5 billion and posted a net profit of Rp500 million, a total of Rp480 million would be subject to a 14% income tax tariff. The remaining Rp20 million would be subject to a 28% normal tariff, he said. If the entrepreneur has no legal entity, he or she will be treated as an individual taxpayer and subject to progressive tariff accordingly, he said.
The House and the government had also agreed to reduce income tax tariff by 5% of normal tariffs for publicly listed companies which sell at least 48% of their shares in the Indonesia Stock Exchange.
The reduced income tax tariff was given to taxpayers with a business turnover of Rp4.8 billion ($526,451) to Rp50 billion per annum, Drajat Wibowo, a member of the House's working committee on the income tax bill, said at the weekend.
For example, he said, if a resident taxpayer had a business turnover of Rp5 billion and posted a net profit of Rp500 million, a total of Rp480 million would be subject to a 14% income tax tariff. The remaining Rp20 million would be subject to a 28% normal tariff, he said. If the entrepreneur has no legal entity, he or she will be treated as an individual taxpayer and subject to progressive tariff accordingly, he said.
The House and the government had also agreed to reduce income tax tariff by 5% of normal tariffs for publicly listed companies which sell at least 48% of their shares in the Indonesia Stock Exchange.