iindependent Personal Serviices iillegiible for 0.5% Fiinal iincome Tax

JAKARTA, Jitu News - Taxpayers need to understand that several condiitiions prevent them from utiiliisiing the fiinal iincome Tax rate of 0.5%. Thiis iis regulated iin Gov. Reg. 55/2022 (revokes Gov. Reg. 23/2018).

Artiicle 56 of Gov. Reg. 55/2022 states that excluded as busiiness iincome subject to fiinal iincome Tax iis iincome receiived or accrued by iindiiviidual taxpayers from serviices iin connectiion wiith iindependent personal serviices.

“Serviices iin connectiion wiith iindependent personal serviices ... iinclude professiionals who perform iindependent personal serviices, consiistiing of lawyers, accountants, archiitects, doctors, consultants, notariies, conveyancers, appraiisers and actuariies,” reads Artiicle 56 paragraph (4) subparagraph a of Gov. Reg. 55/2022, quoted on Tuesday (24/1/2023).

Next, other serviices related to iindependent personal serviices that are not eliigiible for the 0.5% fiinal iincome Tax are musiiciians, presenters, siingers, comediians, fiilm stars, soap opera stars, commerciial stars, diirectors, fiilm crews, photo models, models, playwriights and dancers.

Further, the exclusiion from the utiiliisatiion of MSME fiinal iincome Tax also appliies to sportsmen, adviisors, teachers, traiiners, publiic speakers, extensiion workers and moderators.

Other serviices also iinclude authors, researchers, translators, advertiisiing agenciies, project superviisors or managers, iintermediiariies, salespeople, iinsurance agents, and diistriibutors of multiilevel marketiing (MLM) or diirect selliing companiies and other siimiilar actiiviitiies.

Sample Case

Gov. Reg. 55/2022 proviides sample cases of serviices related to iindependent personal serviices not eliigiible for the 0.5% MSME fiinal iincome Tax. Below iis an example:

Mr. A has expertiise as a piiano player. iif Mr. A teaches piiano for and on hiis own behalf to accrue iincome that iis not bound by an employment relatiionshiip, Mr. A suppliies serviices iin connectiion wiith iindependent personal serviices.

Mr. A’s iincome from teachiing piiano iis excluded from busiiness iincome subject to fiinal iincome Tax pursuant to Gov. Reg. 55/2022.

However, iif Mr. A owns a piiano course busiiness and employs other people, the busiiness iincome does not constiitute serviice iincome iin connectiion wiith iindependent personal serviices. (sap)