The Directorate General of Taxation has revoked Regulation of the Director General of Taxation Number PER-32/PJ/2010 by Regulation of the Director General of Taxation Number PER-14/PJ/2019. The Regulation on Implementation of Imposition of Article 25 Income Tax for Certain Entrepreneurs-Individual Taxpayers is a derivative of Regulation of the Minister of Finance Number 208/PMK.03/2009. Many taxpayers have voiced their concerns over the revocation.
Hence, the government stated that the revocation of the regulation on income tax installments for certain entrepreneurs-individual taxpayers does not change the substantial taxation provisions. The revocation provides choices for certain entrepreneurs-individual taxpayers to determine the taxation scheme to be used. For example, certain entrepreneurs-individual taxpayers with a turnover up to Rp4.8 billion each year can use 0.5 percent final income tax scheme. Those taxpayers do not need to pay Article 25 income tax installments of 0.75 percent.
The government affirmed that the change is made to ease the taxation calculation proses and affirm legal certainty. The government’s goal in the revocation of the regulation is to simplify the implementation of tax obligations for business players by revoking the provisions which do not ease the implementation process.
Source : http://europe.legalcentric.com/content/view/141364