Micro business tax is a type of tax imposed on micro businesses, which usually have relatively small turnover and assets. This tax is regulated by regional governments, and the provisions can vary in each region in Indonesia. Usually, micro businesses are businesses that have an annual turnover below a certain limit, set by the local government.
MSME taxes in 2023 are regulated by the provisions of PPh Article 4 paragraph (2), which are then explained in more detail in Government Regulation Number 23 of 2018 (PP 23/2018). Final Income Tax imposed on MSMEs is a tax imposed on income from business received or obtained by Taxpayers who have gross turnover or turnover of less than IDR 4.8 billion in one year.
The MSME tax rate, which was initially 1%, has been reduced to 0.5%. Therefore, MSME players who have a turnover of no more than IDR 4.8 billion per year will be subject to a tax rate of 0.5%. This policy came into effect on July 1 2018 and applies to MSMEs, including Individual Taxpayers and Corporate Taxpayers (such as cooperatives, firms, CVs and limited liability companies).
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