Extended, Final Income Tax for Individual MSME Taxpayers Valid Until 2029
JAKARTA — The government has announced plans to extend the validity period of the 0.5% final Income Tax facility for Micro, Small, and Medium Enterprise (MSME) taxpayers.
However, this extension only applies to MSME taxpayers with individual status. Previously, the government had only promised to extend the 0.5% final Income Tax facility until the end of 2025.
This policy is part of the economic policy packages launched by the government on Monday (15/9) in Jakarta by Coordinating Minister for Economic Affairs Airlangga Hartarto and Minister of Finance Purbaya Yudhi Sadewa.
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This facility is granted to taxpayers who meet the criteria of having an annual revenue of up to IDR 4.8 billion and yearly income exceeding IDR 500 million. According to Airlangga, the extension is intended to ease the tax burden and simplify administrative obligations.
He also revealed that the government allocated IDR 2 trillion in 2025 for 542,000 MSME taxpayers. In addition to extending the validity period, the government will also adjust the number of MSME taxpayers eligible to receive the final Income Tax facility.
General Provisions on Final Income Tax for MSMEs
In general, the final Income Tax for MSMEs applies not only to individual taxpayers but also to corporate taxpayers that meet the criteria.
Government Regulation No. 55 of 2022 stipulates that eligible taxpayers include individuals as well as corporate taxpayers in the form of cooperatives, limited partnerships (CV), and limited liability companies (PT).
In addition, the facility can also be enjoyed by Village-Owned Enterprises (BUMDes) and Joint Village-Owned Enterprises (BUMDesma). However, there is a validity limit for these corporate taxpayers.
Validity Period for Corporate Taxpayers
For corporate taxpayers in the form of cooperatives, CVs, firms, BUMDes, and BUMDesma, the facility applies for four years. For corporate taxpayers in the form of PTs, the facility applies for only three years.
The period is calculated from the time the taxpayer is registered. Specifically for BUMDes, BUMDesma, and PTs registered before the regulation took effect, the facility can be enjoyed starting from the date the regulation came into force.
Once the validity period ends, the calculation of payable Income Tax will refer to the general provisions under Article 17 of the Income Tax Law. (ASP/KEN)
