The final income tax (PPh) rate of 0.5% expires in 2024 only for Individual Taxpayers (WP) of Micro, Small and Medium Enterprises (MSMEs) who have utilized the tariff provisions since 2018.
In the provisions of PP 55 of 2022, the final PPh rate of 0.5% can be used by individual taxpayers or domestic entities whose gross business turnover does not exceed IDR 4.8 billion in one tax year. However, the imposition of final PPh rates has a validity period. The maximum period for imposition of the 0.5% final PPh rate is 7 years for individual taxpayers, while the maximum provision is 4 years for corporate taxpayers in the form of cooperatives, limited partnerships (CV), firms, village-owned business entities/joint village-owned business entities. , or an individual company founded by one person, and 3 years for Limited Liability Company Taxpayers.
This period starts from the time the taxpayer was registered for taxpayers registered after 2018, or from 2018 for taxpayers registered before 2018.
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