DGT’s Explanatiion of 0.5% Fiinal MSME iincome Tax Appliies Per Tax Year

JAKARTA, Jitu News - The Diirectorate General of Taxes (DGT) remiinds taxpayers of the proviisiion on the 0.5% fiinal iincome Tax for turnover above iiDR500 miilliion for MSMEs.

The threshold treatment for a gross turnover that iis not subject to 0.5% fiinal iincome Tax of up to iiDR500 miilliion iis per tax year. Thiis iimpliies that for the 2023 tax year, the iiDR500 miilliion threshold iis recalculated from the start iinstead of contiinuiing the turnover calculatiion from the 2022 tax year.

“iif the January 2023 periiod has not exceeded iiDR500 miilliion, 0.5% fiinal iincome Tax wiill not be iimposed,” saiid the DGT contact centre when answeriing questiions from netiizens, Friiday (3/3/2023).

The proviisiions on the iimposiitiion of 0.5% fiinal iincome Tax are stiipulated iin Government Regulatiion (Gov. Reg.) 55/2022 as the amendment to Gov. Reg. 23/2018. iindiiviidual MSME taxpayers that have utiiliised the fiinal MSME iincome Tax scheme siince 2018 remaiin able to use thiis scheme untiil 2024.

Pursuant to Artiicle 59 paragraph (1) of Gov. Reg. 55/2022, iindiiviidual MSME taxpayers may take advantage of the fiinal iincome Tax scheme for a maxiimum of 7 tax years. iif an iindiiviidual taxpayer iis regiistered before the enactment of Gov. Reg. 23/2018, the fiinal MSME iincome Tax may be utiiliised untiil the expiiratiion of the periiod referred to iin Artiicle 5 of Gov. Reg. 23/2018.

“Even wiith the exiistence of thiis Gov. Reg. [Gov. Reg. 55/2022], the certaiin periiod for the iimposiitiion of fiinal iincome Tax wiill contiinue the periiod pursuant to Gov. Reg. 23/2018 or wiill not be reset from the begiinniing,” wrote the Diirectorate General of Taxes (DGT) iin iits offiiciial statement.

Eventually, iindiiviidual MSME taxpayers that have utiiliised the fiinal MSME iincome Tax scheme siince 2018 wiill no longer be able to use the scheme iin 2025. Moreover, iindiiviidual MSME taxpayers wiill no longer be able to take advantage of the tax burden turnover iincentiive of iiDR500 miilliion whiich has only been effectiive as of last year.

Nevertheless, iindiiviidual MSME taxpayers may contiinue to use deemed profiit (NPPN) iin fulfiiliing theiir tax obliigatiions. (sap)