The 0.5% Final Income Tax Period for MSMEs Extended

JAKARTA. The government has announced that the period for applying the 0.5% final income tax rate for MSME taxpayers will be extended.

Under the current regulations, the 0.5% final income tax rate is granted for seven years for individual taxpayers, four years for corporate taxpayers in the form of CVs ((Limited Partnerships), Firms, Village-Owned Enterprises (BUMDes), or sole proprietorship companies, and three years for corporate entities in the form of Limited Liability Companies (PT). 

0.5% Final Income Tax Benefits MSMEs

The certainty of an extension was disclosed by the Minister for MSMEs, Maman Abdurrahman, following his discussions with Minister of Finance Sri Mulyani. According to him, this policy will benefit MSME actors.

He explained that at the technical level, there is already an understanding from Sri Mulyani regarding the extension. However, he did not provide specific details on the length of the extension.

Maman hopes that the 0.5% final income tax period for MSMEs will be made permanent. However, the government will evaluate its impact from various perspectives.

Fiscal Impact of Extending MSME Income Tax

Meanwhile, the Ministry of Finance, as quoted by Bisnis.com, stated that the impact of the policy on the government’s fiscal condition will be assessed.

However, the Ministry of Finance also considers that the MSME final income tax policy, which has been in effect since 2018, needs to be evaluated. (ASP/KEN)