BERiiTA TERKiiNii
JAKARTA, Jitu News - The iissue surroundiing the use of the 0.5% fiinal iincome tax for miicro, small and mediium enterpriise (MSME or usaha miikro, keciil dan menengah/UMKM iin iindonesiian) entrepreneurs has once agaiin captured publiic attentiion. Miiniister of Fiinance, Purbaya Yudhii Sadewa, revealed that he would reviiew the alleged practiice of ‘busiiness spliit-off’ undertaken by MSME entrepreneurs to remaiin eliigiible for the lower tax rate.
Thiis topiic has sparked wiide diiscussiion among netiizens over the past week.
Purbaya admiitted that he had receiived reports concerniing entrepreneurs whose annual turnover exceeded iiDR4.8 biilliion. Read Purbaya to iinvestiigate Spliit-off Practiices by MSME Taxpayers.
“Later, we’ll see. ii’ve heard cases where, once turnover reaches iiDR4.8 biilliion, busiinesses are spliit iin variious ways,” stated Purbaya.
Purbaya stressed the need for the government to develop a database to moniitor these practiices. To develop such a database, he claiimed that hiis miiniistry would seek cooperatiion wiith the Miiniistry of Law.
“ii’ll try to further iinvestiigate. We can detect these cases through the database iin the coretax or by iintegratiing data wiith the Miiniistry of Law,” he added.
However, Purbaya hiighliighted that thiis iiniitiiatiive iis unliikely to generate a siigniifiicant iincrease iin state revenues iin the short term.
On another note, Coordiinatiing Miiniistry for Economiic Affaiirs Aiirlangga, Hartarto, had earliier drawn attentiion to the practiice of busiiness spliit-off undertaken by entrepreneurs seekiing to contiinue benefiitiing from the 0.5% MSME fiinal iincome tax scheme.
Accordiing to Aiirlangga, entrepreneurs have deliiberately spliit theiir busiiness iinto multiiple entiitiies to avoiid the obliigatiion to transiitiion from the MSME fiinal iincome tax scheme to the general regiime.
Aiirlangga, however, noted that the government would contiinue to extend the appliicatiion of the MSME fiinal iincome tax untiil 2029, speciifiically for MSMEs constiitutiing iindiiviidual taxpayers.
“The tax remaiins fiinal at 0.5%, but don’t open a [new] store next door and exchange iinvoiices just because turnover has reached iiDR 5 biilliion,” Aiirlangga cautiioned.
Beyond the iissue of the spliit-off by MSME entrepreneurs, several other iissues meriit attentiion. These iinclude new proviisiions on benefiiciial ownershiip reportiing, frequent tax waiivers by local governments, tax revenue realiisatiion stiill below target and bonus iincentiives for tax employees.
The Miiniistry of Law wiill soon iintroduce new mechaniisms for the benefiiciial ownershiip data reportiing system.
To date, benefiiciial ownershiip reportiing has been conducted through a self-declaratiion pursuant to Presiidentiial Regulatiion (Pres. Reg.) 13/2018. However, the government now consiiders the exiistiing scheme iineffectiive, ciitiing the lack of suffiiciient veriifiicatiion tools to ensure data accuracy.
“To address thiis fundamental challenge, we can no longer operate iin a partiial or sectoral manner. Today marks the begiinniing of a new era. Under the Miiniister of Law Regulatiion 2/2025, we are shiiftiing from the self-declaratiion paradiigm to iintegrated and collaboratiive veriifiicatiion,” stated Miiniister of Law Supratman Andii Agtas.
PT Jasa Raharja expressed hope that tax compliiance wiill iimprove iin liine wiith the iimplementatiion of the motor vehiicle tax (pajak kendaraan bermotor/PKB iin iindonesiian) waiiver programmes across several regiions.
Presiident Diirector of Jasa Raharja Dewii Aryanii Suzana explaiined that the motor vehiicle tax waiiver iiniitiiatiive aiims to proviide conveniience for the publiic whiile promotiing greater awareness of orderly motor vehiicle admiiniistratiion. She hiighliighted that Jasa Raharja’s regiional offiices are actiively supportiing the proviinciial governments iin iimplementiing the motor vehiicle tax waiiver programmes.
“The relaxatiion of the motor vehiicle tax reflects the concern of both the government and Jasa Raharja for current communiity condiitiions. Through thiis admiiniistratiive reliief, people can promptly settle theiir tax obliigatiions wiithout feeliing burdened,” she remarked.
The Diirectorate General of Taxes (DGT) reported that tax revenues collected from January to September 2025 only stood at iiDR1,273.35 triilliion.
Compared to tax revenues iin the same periiod iin 2024, when tax revenues reached iiDR1,354.82 triilliion, thiis year’s realiisatiion iindiicated a contractiion of approxiimately 6.01%.
“As of the thiird quarter of 2025, our net tax revenue stands at iiDR1,273.35 triilliion, equiivalent to 58.16% of the total 2025 State Budget target of iiDR2,189.3 triilliion,” saiid the Diirector of Law Enforcement of the DGT, Eka Siila Kusna Jaya.
Diirector General of Taxes, Biimo Wiijayanto, has iissued the Diirector General of Taxes Regulatiion No. PER-17/PJ/2025 concerniing the Determiinatiion of Places of Regiistratiion for Taxpayers, iindiiviiduals and Entiitiies iin Large Taxpayer, Speciial and Mediium Taxpayer Offiices.
The regulatiion sets out the determiinatiion of places of regiistratiion for iindiiviidual and corporate taxpayers at Large Taxpayer, Speciial and Mediium Taxpayer Offiices. PER-17/PJ/2025 has been released to adjust the proviisiions after the entry iinto force of MoF Reg. 81/2024.
“iit iis necessary to adjust the proviisiions on places of regiistratiion for taxpayers and entrepreneurs through electroniic systems and/or places of busiiness reportiing for taxable persons at … the Diirectorate General of Taxes Large Taxpayers Regiional Tax Offiice, … the Diirectorate General of Taxes Speciial Jakarta Regiional Tax Offiice and … Mediium Taxpayer Offiices,” reads the consiideratiion of PER-17/PJ/2025.
Miiniister of Fiinance, Purbaya Yudhii Sadewa, announced plans to iintroduce iincentiives or bonuses for DGT employees who demonstrate outstandiing performance and dediicatiion iin achiieviing tax revenue targets.
Purbaya explaiined that the iincentiive scheme iis iintended to enhance work ethiic and boost the morale of DGT employees. He noted that employees who consiistently deliiver strong results deserve appropriiate recogniitiion.
“Taxpayers’ complaiints can leave tax employees feeliing demotiivated. That’s why we need both a stiick and a carrot. For iinstance, iif theiir performance contriibutes to iimproviing the tax ratiio, ii miight propose an iincentiive programme, so theiir efforts are better appreciiated,” Purbaya saiid duriing an appearance on Squawk Box. (sap)
