From PP 46/2013 to PP 20/2026
| Regulation | Period | Rate | Key feature |
|---|---|---|---|
| PP 46/2013 | Jul 2013 – Jun 2018 | 1% | First turnover-based tax for businesses under Rp4.8bn |
| PP 23/2018 | Jul 2018 – 2022 | 0.5% | Time limits: 7 years for individuals, 4 for CV/firma/co-ops, 3 for PT |
| PP 55/2022 | 2022 – Apr 2026 | 0.5% | First Rp500m of individuals' turnover tax-free |
| PP 20/2026 | From 22 Apr 2026 | 0.5% | No time limit for individuals and PT Perorangan; CV, firma and PT excluded |
Who can use 0.5% now
- Individuals running a business — no time limit as long as turnover stays within Rp4.8 billion.
- PT Perorangan, the single-founder company created by the Job Creation Law — also no time limit.
- Cooperatives — four tax years from registration. Cooperatives registered before PP 20/2026 keep their original period.
CVs, firma, regular PTs and state- or village-owned enterprises can no longer use the scheme and pay corporate income tax on profit, with the Article 31E reduction if turnover is up to Rp50 billion.
For people whose old seven-year window had already ended, the transitional rules let individuals and PT Perorangan who used 0.5% in tax year 2024 or 2025 continue in 2026.
The Rp4.8 billion threshold
Turnover is gross receipts from business, before any costs, over the calendar year. PP 20/2026 adds an anti-splitting rule: for married couples, the threshold applies to the combined turnover of husband and wife and of any PT Perorangan they own. If turnover passes Rp4.8 billion, the 0.5% rate still applies for the rest of that year, and normal rates with bookkeeping apply from the next year.
The Rp500 million exemption
Individuals pay nothing on the first Rp500 million of turnover in each year — the DJP confirmed this is unchanged. In practice you track cumulative turnover month by month; once it passes Rp500 million, you pay 0.5% on each month's turnover above that point. A business turning over Rp100 million a month pays nothing for January to May and starts paying in June.
Work out your tax and the month it starts.
UMKM Final Tax Calculator →Income that does not qualify
- Independent professional services (pekerjaan bebas) — doctors, lawyers, notaries, accountants, architects, consultants, artists, performers, athletes, speakers and similar.
- Income already subject to its own final tax, like property rent or sales.
- Income earned outside Indonesia.
How to pay and report
- Record gross turnover every month — a simple ledger is enough.
- Create a billing code in Coretax (or through a bank or tax app) using tax type 411128 and deposit code 420, and pay by the 15th of the following month.
- If a customer is a withholding agent, give them your eligibility certificate so they withhold 0.5% instead of PPh 22 or 23.
- Report the turnover and tax paid in your annual SPT. The 0.5% tax is final, so there is nothing more to pay on it.
Choosing normal rates instead
Businesses with thin margins or losses may pay less on profit than on turnover. You can opt out of 0.5% by notifying DJP, but the choice is one-way — you cannot return to the 0.5% scheme afterwards.
Based on PP 20/2026 and DJP statements as of 2 Oct 2026. Implementing PMK details may follow. Confirm your eligibility with DJP.