New Rules: Influencers and Doctors Barred from 0.5% UMKM Income Tax Scheme

The government has clarified the criteria for taxpayers eligible for the 0.5% final income tax (PPh) scheme for UMKM. Under the new regulation, the scheme now applies exclusively to individual taxpayers, single-member corporations, and cooperatives.

According to Government Regulation (PP) No. 20 of 2026, amending PP No. 55 of 2022 on adjustments to income tax regulations, the rule took effect from its promulgation on 22 April 2026. Article 57(1) states: “Domestic taxpayers with a specific gross turnover subject to final PPh are individuals; and corporate entities structured as single-member corporations and cooperatives.”

The 0.5% final PPh rate is available only to taxpayers with a maximum annual gross revenue of Rp4.8 billion. Article 58(1)(a) defines gross turnover as the total income from business and freelance services in the previous tax year, including both final and non-final PPh income, as well as foreign-sourced gross turnover. It further specifies that payments or compensation in cash or monetary value received from business and freelance services, before deducting sales discounts, cash discounts, or similar reductions, are included.

However, not all income types qualify for the UMKM PPh scheme. The government has excluded income from freelance services, including lawyers, accountants, architects, doctors, consultants, notaries, land deed makers (PPAT), appraisers, actuaries, and similar professions.

Workers in the arts and creative economy are also excluded. Musicians, hosts, singers, comedians, film stars, soap opera actors, commercial models, directors, film crew, photo models, models, drama actors, dancers, sculptors, painters, influencers, social media celebrities, bloggers, vloggers, and other artists cannot use the scheme.

Other excluded freelance services include athletes, advisors, educators, trainers, lecturers, extension workers, moderators, authors, researchers, translators, advertising agents, project supervisors, intermediaries who find customers, sales representatives, insurance agents, and multi-level marketing distributors.

Additionally, foreign-sourced income already taxed in the country of origin, income subject to final PPh under other regulations, and income exempt from taxation are not covered by this scheme.