Reduction of Income Tax rate for Small-Scale Business from 1% to 0.5%
On 8 June 2018, the Government issued a Regulation No. 23 year 2018 (“GR-23/2018”) regarding income tax on income received or earned by taxpayers having gross income up to certain amount. GR-23/2018 revokes the previous GR-46/2013. GR-23/2018 is effective from 1 July 2018.
GR-23/2018 is aiming to encourage the public to participate in formal economic activities by granting facility and justice to taxpayers having income up to a certain amount for a certain period.
The summary of the new regulation is as follows:
There is no change in the threshold of the category/ definition of “small-scale business”, i.e. a local taxpayer having income up to IDR4,800,000,000 per annum.
Income received by an individual taxpayer from services in respect of free employment e.g. lawyer, accountant, architect, doctor, consultant, notary, appraiser, actuary, singer, broker, etc.
Income received or earned abroad for which the tax is payable or already paid abroad;
Income already subject to final tax based on other provisions; and
Income not subject to tax.
7 years for individual taxpayers;
4 years for corporate taxpayers in the form of cooperative, partnership, or firm; and
3 years for corporate taxpayer in the form of limited liability company (Perseroan Terbatas).
Hartiadi Budi Santoso – Partner, M: +62 (816) 850 258, E: email@example.com
Ahdianto – Partner, M: +62 (812) 100 4451, E: firstname.lastname@example.org
Rahadianto Sudewo – Partner, M: +62 (815) 991 0130, E: email@example.com
Charles Oetomo – Partner, M: +62 (816) 786 811, E: firstname.lastname@example.org
IDM Agung Nugraha – Partner, M: +62 (818) 726 010, E: email@example.com
Jeklira Tampubolon – Partner, M: +62 (811) 846 455, E: firstname.lastname@example.org
Endy Arya Yoga – Partner, M: +62 (816) 197 1930, E: email@example.com
Benjamin Simatupang – Director, M: +62 (816) 144 2486, E: firstname.lastname@example.org
Fabian Abi Cakra – Director, M: +62 (813) 103 14103, E: email@example.com
Julius Daryono – Director, M: +62 (818) 083-25781, E: firstname.lastname@example.org
Aditya Wicaksono – Director, M: +62 (818) 462 644, E: email@example.com
Kitamura - Advisor – Japanese Desk, M: +62 (21) 2988 0681, E: firstname.lastname@example.org
Felic Setiawan – Director, M: +62 (821) 151 11228, E: email@example.com
Irma Batubara – Director, M: +62 (818) 0621 2548, E: firstname.lastname@example.org
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