TaxSavvyID

Leaving the 0.5 percent scheme for a full year

Tahun ini PT kami selesai masa PPh final. Bagaimana SPT-nya?

The situation

When a company's 0.5 percent period ends, it moves to normal rates from the next tax year. The first normal year needs full books and fiscal adjustments.

The law

  • Transitional rule, PP 20/2026 amending PP 55/2022: CV, firma, PT and BUMDes already using 0.5 percent keep it only until their old time limit ends; new ones cannot use it; cooperatives get 4 tax years
  • 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 31E, Law 7/1983 on Income Tax (PPh Law), as last amended by Law 6/2023: Resident companies with gross turnover up to IDR 50 billion get a 50 percent rate cut on taxable income from the first IDR 4.8 billion of turnover

What it means for you

Under PP 20/2026, PTs that were already using 0.5 percent keep it only until their old 3 year limit. Plan PPh 25 instalments for the first normal year. Example: a PT registered in 2023 used 0.5 percent to 2025, so 2026 is its first normal year.

What to do

  1. Confirm the last final year.
  2. Start books and fixed asset records.
  3. Compute normal tax.
  4. Plan instalments.

Continuing 0.5 percent beyond the limit leads to assessments.

We can do this for youCorporate annual income tax return (SPT Tahunan PPh Badan): fiscal adjustments, Art 31E, instalments and financial statements: IDR 7.500.000

Related