TaxSavvyID

Turnover passed IDR 4.8 billion mid year

Omzet saya tembus 4,8 miliar di bulan Oktober. Apa yang berubah?

The situation

If turnover passes IDR 4.8 billion during a year, you keep 0.5 percent until the end of that year, then use normal rates from the next year.

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
  • Art 3A, Law 8/1983 on VAT and Luxury Goods Sales Tax (PPN Law), as last amended by Law 6/2023: A business making taxable supplies must report to be confirmed as a taxable entrepreneur (PKP), except small entrepreneurs who may opt in
  • PMK 197/PMK.03/2013 on small entrepreneur limit: A small entrepreneur for VAT is one with taxable turnover up to IDR 4.8 billion in a book year

What it means for you

Passing IDR 4.8 billion also usually means you must register as a PKP for VAT, since the VAT threshold is the same figure for taxable turnover. Start books now and prepare for VAT invoices.

What to do

  1. Keep paying 0.5 percent this year.
  2. Register as PKP by the end of the next month.
  3. Start full books for next year.
  4. Plan PPh 25 instalments.

Missing PKP registration leads to VAT assessments.

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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