Micro, small and medium enterprises or MSMEs who have enjoyed an income tax rate (PPh) of 0.5% of gross turnover since 2018 will again be subject to normal tax rates starting in 2024.
This is in accordance with the provisions in Government Regulation Number 23 of 2018 concerning Income Tax on Income from Businesses Received or Obtained by Taxpayers Who Have a Certain Gross Turnover. In Article 5 PP no. 23/2018 does state that the period for using the final PPh rate for MSMEs of 0.5% is a maximum of 7 years for individual taxpayers, 4 years for business entities in the form of cooperatives, CVs and firms, and 3 years for those in the form of limited liability companies ( PT).
After the time period expires, the PPh rate charged is in accordance with the threshold for taxable income. This taxable income can be calculated in two ways, namely net income calculation norms or bookkeeping.
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