TaxSavvyID

First IDR 500 million of turnover is tax free

Apakah saya bayar pajak 0,5 persen dari omzet pertama Januari?

The situation

Individual taxpayers pay no final tax on the first IDR 500 million of business turnover in a tax year, counted from January.

The law

  • PP 55/2022 on income tax adjustments, as amended by PP 20/2026 (in force 22 April 2026): 0.5 percent final tax on gross turnover up to IDR 4.8 billion a year for individuals, single founder PT Perorangan and cooperatives; individuals pay nothing on the first IDR 500 million

What it means for you

Track cumulative turnover each month. Tax starts only on the part above IDR 500 million. Example: monthly sales IDR 75,000,000. Months 1 to 6 total IDR 450 million, no tax. Month 7 total IDR 525 million, tax on IDR 25 million = IDR 125,000. Months 8 to 12 IDR 375,000 each.

What to do

  1. Keep a monthly turnover log.
  2. Pay nothing until the IDR 500 million band is used.
  3. Pay 0.5 percent on the excess by the 15th.
  4. Report the band in the annual return.

The band is per person for the year, not per business.

We can do this for youMSME final tax at 0.5 percent: eligibility after PP 20/2026, monthly payment and switching to normal rates: IDR 500.000

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