Application Of The Rate Of Final Income Tax Of 0.5%

Since August 1, 2018, Micro, Small, and Medium Enterprises (MSME) with the maximum turnover of Rp4.8 billion per year can start to enjoy the rate of final income tax of 0.5% in accordance with Government Regulation Number 23 Year 2018 regarding Income Tax on Income from Business Received or Earned by Taxpayers Having Certain Gross Turnover.

On July 1, 2018, those MSME are still subject to the rate of final income tax of 1% due to the income tax paid in July constitutes the tax on income received in June. Meanwhile, the income received in July 2018 is subject to the rate of final income tax of 0.5% since the regulation comes into effect as of July 1, 2018.

In addition, the Ministry of Finance is drafting a Regulation of the Minister of Finance which constitutes the implementing regulation of such Government Regulation. The Regulation of the Minister of Finance will provide for tax returns if MSME use bookkeeping.

 

Source : https://legalcentric.com/content/view/134011

The Director General of Taxation Regulation Number PER-02/PJ/2019 Procedure for the Submission, Receipt, and Processing of Tax Returns
The Director General of Taxation Regulation Number PER-02/PJ/2019 Procedure for the Submission, Receipt, and Processing of Tax Returns

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