DGT Urges Taxpayers to Await Official Regulation on 0.5% Final Income Tax Extension
JAKARTA – The Directorate General of Taxes (DGT) has confirmed the government's plan to extend the application period of the 0.5% Final Income Tax (ITA).
According to the DGT, individual taxpayers running Micro, Small, and Medium Enterprises (MSMEs) who have utilized the 0.5% Final ITA facility for seven years by 2024 will be granted a one-year extension until 2025.
However, the regulation regarding this extension has yet to be issued. For now, the implementation of the 0.5% Final ITA continues to refer to Government Regulation (PP) No. 55 of 2022.
READ: The 0.5% Final Income Tax Period for MSMEs Extended
Duration of the 0.5% Final Income Tax (ITA)
Under the current regulation, only individual or corporate taxpayers with an annual revenue of up to IDR 4.8 billion are eligible to utilize the 0.5% Final ITA facility.
The applicable duration for using this facility is as follows: seven years for individual taxpayers; four years for corporate taxpayers in the form of cooperatives, limited partnerships (CV), firms, and village-owned enterprises; and three years for corporate taxpayers in the form of limited liability companies.
The issue arises with the promised one-year extension, which has caused confusion among individual MSME taxpayers who have been using this facility since 2018, as they are now required to immediately apply for a certificate of eligibility for the 0.5% Final ITA facility.
Awaiting the Issuance of the New 0.5% Final ITA Regulation
Regarding this matter, the DGT, through a post on its X account @Kring_Pajak, stated that as long as the new regulation has not been issued, the applicable period for the 0.5% Final Income Tax (ITA) remains based on the previous regulation.
“As of now, the technical provisions governing this matter have not yet been issued. Therefore, the applicable period for the 0.5% Final ITA still refers to Article 59, paragraph (1) of Government Regulation No. 55 of 2022,” the DGT stated, as quoted on Saturday (March 29).
Use of NPPN (Net Income Calculation Norm)
Taxpayers engaged in business activities or independent professions with an annual revenue of less than IDR 4.8 billion may also opt to use the Net Income Calculation Norm (NPPN).
To use the NPPN scheme, taxpayers must submit a notification to the DGT no later than March 31 of each year.
This notification can be submitted in person, by mail, through courier services, or electronically via the Coretax system or Kring Pajak at 1500200. (ASP/KEN)
