MSME final tax at 0.5 percent: eligibility after PP 20/2026, monthly payment and switching to normal rates

We check if you can use 0.5 percent after PP 20/2026, track your turnover against the IDR 500 million free band and the IDR 4.8 billion ceiling, make the billing code each month, and tell you when normal rates will be cheaper or required.

IDR 500.000Monthly

For: Individual business owners and freelancers with turnover up to IDR 4.8 billion, PT Perorangan, cooperatives, and CV, firma or PT still inside their old PP 55/2022 time limit.

What we need from you

Monthly sales records
Tax base is gross turnover
Date of first NPWP registration
Time limits for entities
Entity type: individual, PT Perorangan, cooperative, CV, firma, PT
Eligibility after PP 20/2026
Spouse and minor children's business turnover
Combined for the IDR 4.8 billion test
Profession list
Some freelance professions are excluded
Bukti potong from buyers who withheld 0.5 percent
Credit against the monthly payment

What we discuss

Are you an individual, PT Perorangan or cooperative?
Only these remain eligible for new users
When was your entity first registered?
CV, firma and PT keep 0.5 percent only to the end of their old limit
Is your work a listed profession (doctor, lawyer, consultant, influencer, and others)?
Excluded professions use normal rates or NPPN
Are you making a profit or a loss?
0.5 percent is due even in a loss year; normal rates may be cheaper
Will turnover pass IDR 4.8 billion this year?
Normal rates apply from the next year

What we file

Track cumulative turnover and the IDR 500 million band
Monthly sales IDR 75,000,000: months 1 to 6 total IDR 450,000,000, tax nil; month 7 total IDR 525,000,000, tax 0.5 percent of IDR 25,000,000 = IDR 125,000; months 8 to 12 IDR 375,000 each
Create billing code and pay
Report turnover in the annual return

What you get

Eligibility note under PP 20/2026
Monthly billing code and payment check
Year end review: stay on 0.5 percent or move

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 Source
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 Source
PMK 81/2024 on tax provisions for implementing the Core Tax Administration System (Coretax): In force 1 January 2025; Coretax registration, returns, payment due dates aligned to the 15th of the following month, prepopulated returns and deposit balance Source
Art 4(2), Law 7/1983 on Income Tax (PPh Law), as last amended by Law 6/2023: Certain income bears final tax: land and building rent, construction services, MSME turnover and others set by government regulation Source

Questions people ask

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