Business owner with NPPN in the annual return
Saya pakai NPPN. Bagaimana isi SPT-nya?
The situation
Individuals with business turnover under IDR 4.8 billion who notified the DJP may compute profit using the deemed profit norm (NPPN) and pay normal rates on that profit.
The law
- Art 14(2), Law 7/1983 on Income Tax (PPh Law), as last amended by Law 6/2023: Individuals with business turnover under IDR 4.8 billion may use the deemed profit norm (NPPN) if they notify the DJP in the first 3 months of the year
- Art 17, Law 7/1983 on Income Tax (PPh Law), as last amended by Law 6/2023: Individual rates: 5 percent up to IDR 60 million, 15 percent to IDR 250 million, 25 percent to IDR 500 million, 30 percent to IDR 5 billion, 35 percent above; company rate 22 percent
- Art 28, Law 6/1983 on General Provisions and Tax Procedures (KUP Law), as last amended by Law 6/2023: Businesses and companies must keep books in Indonesia, in Indonesian and in rupiah unless permitted otherwise; small individuals may keep records instead
What it means for you
Multiply turnover by the norm for your activity and city, then add other income, deduct PTKP and apply Art 17 rates. Keep simple records of turnover. Example: turnover IDR 1 billion and a norm of 20 percent gives net IDR 200 million.
What to do
- Confirm you notified NPPN in time.
- Apply the norm for your activity.
- Add other income and deduct PTKP.
- Compute and pay tax.
Without the notice you must keep full books.
We can do this for youIndividual annual income tax return (SPT Tahunan PPh Orang Pribadi) in Coretax: IDR 750.000