#Final Income Tax

Government Cuts Authors' Royalty Tax Rate to 1.5%

The government cuts authors' royalty tax to a 1.5% final income tax to promote literacy, support writers, and encourage book publishing.

Jul 16, 2026

Purbaya Explains Why CVs and PTs Are Excluded from 0.5% Final Tax

The government excludes CVs and PTs from the 0.5% final MSME tax to prevent abuse and ensure the incentive reaches its intended beneficiaries.

Jul 16, 2026

Easing Cash Flow Pressure through Certificate of ITA 22 Exemption

ITA 22 withholding mechanism often creates cash flow pressure for companies. An SKB for ITA 22 can serve as a solution to help maintain liquidity. 

Mar 6, 2026

Marketplace Income Tax Rule Put on Hold Over Economic Concerns

Sep 29, 2025

Extended, Final Income Tax for Individual MSME Taxpayers Valid Until 2029

The government has officially extended the 0.5% final income tax facility for individual MSMEs until 2029. This policy is aimed at easing the tax burden, with a budget allocation of IDR 2 trillion in 2025 for 542 thousand taxpayers.

Sep 16, 2025

Automation of Final Income Tax: A Time Bomb for Newly Registered Corporate Taxpayers

This article critiques the automatic classification of newly established corporate taxpayers as subjects to the 0.5% final income tax, which may be detrimental due to the limited options available at the time of registration. The misalignment between regulations and administrative systems is seen as a potential trigger for future tax disputes. 

Jul 23, 2025

Government Officially Appoints Marketplaces to Collect Income Tax Article 22 from Online Merchants

Government Officially Appoints Marketplaces as Withholders of Income Tax Article (ITA) 22 from Online Merchants with Turnover Above IDR 500 Million. The regulation takes effect on June 14, 2025, and includes specific provisions and exemptions.

Jul 15, 2025

DGT Urges Taxpayers to Await Official Regulation on 0.5% Final Income Tax Extension

Individual taxpayers who have been using the 0.5% Final Income Tax (ITA) facility since 2028 have been assured of a one-year extension until the end of 2025, but the regulation for this extension has yet to be issued.

Mar 29, 2025

Breaking Down Tax Compliance Strategies in Construction with MUC Consulting and Appeknas

Tax compliance in the construction services sector is crucial for business operators. To address this, MUC Consulting collaborated with Aspeknas to hold a webinar titled "Tax Compliance Strategies for Construction Services: Optimizing Rates and Reporting in Line with the Latest Regulations.

Mar 19, 2025

Expand the Tax Base, Government to Lower MSME Threshold to IDR 3.6 Billion Per Year

The government plans to lower the income threshold for MSME (Micro, Small, and Medium Enterprises) business actors subject to income tax from IDR 4.8 billion to just IDR 3.6 billion per year.

Dec 20, 2024

The 0.5% Final Income Tax Period for MSMEs Extended

The period of imposition of the 0.5% final Income Tax (PPh) rate for MSME taxpayers will be extended.

Nov 30, 2024

DGT Expands Prepopulated Tax Return, Income Tax Included

The Directorate General of Taxes (DGT) will expand the scope of the prepopulated annual tax return system to include final income tax deductions on interest on deposits and savings.

Oct 27, 2023

MUC-UTDI Collaborates, Socializing MSME Tax Provisions

In collaboration with Universitas Teknologi Digital Indonesia (UTDI), MUC Consulting held a seminar on tax obligations for Micro, Small, and Medium Enterprises (MSMEs).

Jun 23, 2023

OECD Examines the Practice of Presumptive Tax Regimes in the World

As the name implies, a presumptive tax regime is a tax collection conducted based on presumptions to approach net taxable income.

Feb 24, 2023

MSME Final Income Tax Facility of 0.5% is Expanded

Previously, this facility was only used by individuals and corporate taxpayers in the form of Cooperatives, Limited Partnerships (CV) and Limited Liability Companies (PT). However, now it can be enjoyed by Village-owned Enterprises (BUMDes) or Joint Village-owned Enterprises (BUMDESma).

Jan 10, 2023

Questioning the Expansion of the Tax Base: Reducing VAT Threshold vs MSME Final Income Tax

The expansion of the tax base needs to be encouraged through intensification and extensification policies, as well as simplification of the taxation system, while still upholding the value of justice. Efforts to expand the tax base should focus more on economic activities and transactions in sectors that have not been included in the tax system radar (shadow economy).

Sep 13, 2021

Income Tax Provision on Transfer of Participating Interest of Oil and Gas Activities Released

The government asserts that any income derived from the transfer of participating interests or the proportion of ownership of production and exploration in oil and gas Contract of Work (KK), either directly or indirectly by contractors, is subject to Income Tax (PPh).

Sep 10, 2021

Attracting Investors, Government Cuts Tax on Bond Interest to 10% Final

This rate reduction was carried out to attract investors in the domestic bond market. In addition, so that the income tax rate on bond interest for domestic taxpayers and permanent establishments is in line with the applicable rate for foreign taxpayers other than permanent establishments, which was previously also lowered to 10%.

Sep 6, 2021

Measuring the Ideal Rate of Final Income Tax on Space Lease

Now may be a perfect time for the government to reduce the final Income Tax rate, especially on land and building leases. As promised by the DGT, a policy evaluation must indeed be carried out in 2020. 

Nov 13, 2020