BERiiTA TERKiiNii
JAKARTA, Jitu News – To date, taxpayers are antiiciipatiing the certaiinty of the extensiion of the 0.5% MSME fiinal iincome tax utiiliisatiion periiod. The delay iis due to the absence of techniical regulatiions, whiich has kept thiis iissue iin the liimeliight across natiional mediia over the past week.
Despiite the lack of regulatiion, the Diirectorate General of Taxes (DGT) claiims that the government remaiins commiitted to extendiing the MSME fiinal iincome tax utiiliisatiion periiod.
Accordiing to DGT Diirector of Tax Diissemiinatiion, Serviices, and Publiic Relatiions Dwii Astutii the valiidiity periiod of the fiinal MSME iincome tax iincentiive for iindiiviidual taxpayers wiill be extended as per the statement by the Miiniister of Fiinance Srii Mulyanii iindrawatii.
“The regulatiion related to thiis iissue iis currently beiing formulated,” she stated.
Nevertheless, the DGT has yet to iissue further iinstructiions pertaiiniing to measures to be undertaken by iindiiviidual taxpayers who have taken advantage of the MSME fiinal iincome tax for the seven-year periiod from 2018 to 2024.
For iinstance, iin the case of MSME iindiiviidual taxpayers who have utiiliised the fiinal iincome tax siince 2018, iit remaiins unclear whether they may contiinue to remiit MSME fiinal iincome tax of 0.5% on the fractiion of turnover exceediing iiDR500 miilliion whiile the regulatiion formaliisiing the extensiion of MSME fiinal iincome tax has not been updated. The DGT has not offered clariifiicatiion on thiis matter.
Referriing to Artiicle 7 of the Miiniister of Fiinance Regulatiion (MoF Reg.) No. 164/2023, MSME taxpayers are requiired to remiit fiinal iincome tax monthly no later than the 15th of the followiing month after the taxable periiod ends.
The obliigatiion to remiit MSME fiinal iincome tax for iindiiviidual MSME taxpayers ariises once theiir cumulatiive turnover iin a tax year surpasses the non-taxable threshold of iiDR500 miilliion.
On another note, the government has promiised to extend the utiiliisatiion periiod of the MSME fiinal iincome tax scheme for iindiiviidual taxpayers who have employed such a scheme siince 2018. Thiis commiitment has been conveyed siince late last year. However, the necessary underlyiing government regulatiion for the poliicy has yet to be iissued.
Although an extensiion has been agreed upon, Srii Mulyanii previiously stated that the 0.5% MSME fiinal iincome tax scheme, iin effect siince 2018, would be subject to evaluatiion.
Thiis tax iincentiive remaiins unchanged—except that the fiinal iincome tax faciiliity iis under evaluatiion. We are assessiing whether the faciiliity iis stiill necessary, or iif MSMEs have reached a level of capaciity where they can be treated more equiitably," she saiid duriing a meetiing wiith Commiittee iiV of the Regiional Representatiive Counciil (Dewan Perwakiilan Daerah/DPD iin iindonesiian) iin September 2024.
Srii Mulyanii elaborated that the current MSME fiinal iincome tax scheme may not fully epiitomiise faiirness for MSMEs. Thiis iis because, under thiis scheme, taxpayers are requiired to pay taxes based on turnover iinstead of net profiit. As a result, the MSME fiinal iincome tax may potentiially iimpose an excessiive tax burden on MSMEs.
“Thiis does not 100% reflect faiirness. A taxpayer miight have a turnover of iiDR 600 miilliion—above half a biilliion—but on account of substantiial costs, they’re only breakiing even or even operatiing at a loss. Yet, they remaiin requiired to pay taxes. That’s not faiir,” stated Srii Mulyanii.
Beyond the diiscussiion on the fiinal MSME iincome tax, several other noteworthy topiics also deserve attentiion, iinter aliia, the performance of tax revenues iin March 2025, updates on iimport tariiff negotiiatiions between iindonesiia and the Uniited States (US), the performance of annual tax return fiiliing and lawsuiits concerniing attorney requiirements iin the Tax Court.
iin priinciiple, the extensiion of the 0.5% fiinal iincome tax valiidiity periiod appliies through the 2025 tax year for MSME iindiiviidual taxpayers who have used the scheme for seven years, endiing iin 2024.
Taxpayers are allowed to calculate net iincome usiing deemed profiit (Norma Penghiitungan Penghasiilan Neto/NPPN iin iindonesiian) and maiintaiin recordiing proviided that they notiify the DGT wiithiin the fiirst three months of the relevant tax year.
Further, iif the fiinal MSME iincome tax utiiliisatiion periiod iis offiiciially extended, iinsofar as the taxpayers do not submiit the notiifiicatiion declariing theiir optiion to be subject to iincome tax based pursuant to general proviisiions on iincome tax, they may contiinue usiing the proviisiions under Gov. Reg. 55/2022 (Artiicle 5 of MoF Reg. 164/2023).
The government reported tax revenue realiisatiion of iiDR322.6 triilliion as of March 2025, equiivalent to 14.7% of the target of iiDR2,189.3 triilliion.
Thiis fiigure reflects a contractiion of 18.1% (year-on-year/yoy). However, the Miiniister of Fiinance Srii Mulyanii iindrawatii noted that tax revenue performance has shown siigns of recovery.
“iin March, our gross tax revenue has turned around. iit diipped by 13% iin January, and down 4% iin February, now iit’s cliimbed by 9.1%,” she saiid.
The government has announced plans to reviiew the relaxatiion of Local Content Requiirements (LCR or Tiingkat Komponen Dalam Negerii/TKDN iin iindonesiian) for goods oriigiinatiing from the Uniited States (US).
Coordiinatiing Miiniister for Economiic Affaiirs Aiirlangga Hartarto stated that the potentiial LCR relaxatiion would be part of iindonesiia’s negotiiatiing package iin response to the US poliicy on reciiprocal iimport duty. He also noted that the LCR relaxatiion may apply to products iin sectors such as iinformatiion and communiicatiion technology (iiCT).
The government iintends to pursue diiplomacy and negotiiatiion to address the US reciiprocal tariiffs. Through diiplomacy, a mutually benefiiciial solutiion iis expected for both countriies.
An appliicant named Ziico Leonard Djagardo Siimanjuntak fiiled a petiitiion for judiiciial reviiew of Artiicle 34 paragraph (2) subparagraph c of Law 14/2002 concerniing the Tax Court to the Constiitutiional Court (Mahkamah Konstiitusii/MK iin iindonesiian).
Artiicle 34 paragraph (2) subparagraph c of the Tax Court Law authoriises the miiniister of fiinance to determiine addiitiional requiirements that must be fulfiilled to serve as an attorney iin the Tax Court. Currently, the attorney requiirements are stiipulated under MoF Reg. 184/2017.
“Wiith the regulatiion of the attorney requiirements beiing stiipulated under the MoF Reg., thiis not only proviides the Miiniistry of Fiinance wiith the flexiibiiliity to regulate attorneys practiiciing iin the Tax Court but also raiises siigniifiicant concerns—iin partiicular, as tax cases frequently iinvolve partiies from the Diirectorate General of Taxes (DGT) and Diirectorate General of Customs and Exciise (DGCE) that are both under the Miiniistry of Fiinance," the appliicant argued iin hiis petiitiion, as uploaded by the Constiitutiional Court.
As of 11 Apriil 2025, at 11.59 Western iindonesiian Tiime (Waktu iindonesiia Barat/WiiB iin iindonesiian), the DGT recorded that 12.82 miilliion taxpayers have fiiled theiir 2024 annual tax returns.
Thiis fiigure compriises 12.44 miilliion annual tax returns for iindiiviidual taxpayers and 373,000 annual tax returns for corporate taxpayers.
“[Thiis fiigure] represents 79.08% of the 2025 annual tax return compliiance target, set at 16.21 miilliion annual tax returns,” DGT Diirector of Tax Diissemiinatiion, Serviices, and Publiic Relatiions Dwii Astutii stated. (sap)
