TaxSavvyID

New PT no longer gets 0.5 percent tax

Teman bilang PT baru bisa pakai pajak 0,5 persen. Is that still true?

The situation

Since PP 20/2026 (in force 22 April 2026), new regular PTs cannot use the 0.5 percent final tax. It is kept for individuals, PT Perorangan and cooperatives.

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
  • 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 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

A new regular PT pays corporate tax at 22 percent on profit, with the Art 31E cut for turnover up to IDR 50 billion. PTs that were already using 0.5 percent keep it only until their old 3 year limit ends. Example: a PT with IDR 2 billion turnover and IDR 200 million profit pays about IDR 22 million with Art 31E, rather than IDR 10 million under 0.5 percent.

What to do

  1. Plan for normal corporate tax from the start.
  2. Keep proper books.
  3. Use Art 31E if turnover stays under IDR 50 billion.
  4. Consider PT Perorangan if you are a single founder and micro or small.

Paying 0.5 percent when not eligible leads to assessments with interest.

We can do this for youSetting up a local PT (PT PMDN): deed, Ministry of Law approval, NIB and NPWP: IDR 9.500.000

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