Guide to MSME Tax in Indonesia (PPh Final 0.5%)
Since the enactment of **PP No. 55 Year 2022**, MSME players in Indonesia have been given simplicity in tax calculation. For Individual Taxpayers, turnover up to **IDR 500,000,000 within one tax year is not taxed** at all. After exceeding this amount, a 0.5% PPh Final rate is applied.
Requirements for Using 0.5% PPh Final
- Individual or Entity Taxpayers (PT, CV, Firm, Cooperative).
- Gross turnover does not exceed IDR 4.8 Billion in a year.
- Usage time limit: 7 years for Individuals, 4 years for CV/Cooperatives, and 3 years for PT.
How to Calculate MSME Tax:
- Sum all turnover from the start of the year until now.
- If you are an Individual Taxpayer, the remaining turnover below 500 million is not taxed.
- Multiply the turnover that has exceeded 500 million by the 0.5% rate.
- Deposit the tax no later than the 15th of the following month via e-Billing.