Three ways a self-employed person in Indonesia can be taxed — deemed profit using NPPN, actual profit from bookkeeping, or 0.5% of turnover for businesses — compared side by side.
| Method | Who can use it | How tax is worked out |
|---|---|---|
| UMKM 0.5% final | Individuals running a business with turnover up to Rp4.8bn — not independent professionals | 0.5% of turnover above Rp500m a year, paid monthly |
| NPPN (norma) | Individuals with turnover under Rp4.8bn who notify DJP within the first 3 months of the year | Net income = gross × norma %; then PTKP and Pasal 17 rates |
| Bookkeeping (pembukuan) | Anyone; compulsory above Rp4.8bn | Net income = gross − deductible costs; then PTKP and Pasal 17 rates |
The 0.5% scheme — now under PP 20/2026 — excludes income from independent personal services: doctors, lawyers, accountants, architects, notaries, appraisers, actuaries, consultants, artists, musicians, entertainers, athletes, trainers, speakers, writers, researchers and agents, among others. These freelancers are taxed at normal rates on net income, using either NPPN or bookkeeping. Freelancers who sell goods or run a business (an online shop, a catering kitchen, a production house with employees) can usually use 0.5%.
The Norma Penghitungan Penghasilan Neto lets a small professional skip full accounts. You keep a simple record of receipts, and DJP's table (PER-17/PJ/2015) deems a fixed percentage of them to be profit. The norma depends on your business classification code (KLU) and on whether you work in one of ten large provincial capitals, another provincial capital, or elsewhere. To use it you must notify DJP within the first three months of the tax year; otherwise you are treated as keeping books.
When a company pays an individual freelancer, it withholds PPh 21 at the Pasal 17 rates on 50% of the gross fee — effectively 2.5% on the first slice. These amounts are credits against your annual tax, so keep every bukti potong. The estimate in the result assumes all your income came from such clients.
Look up your exact KLU and norma rate in PER-17/PJ/2015 and confirm whether your activity counts as pekerjaan bebas with DJP or a registered tax consultant.