Government Ensures Final Income Tax Threshold for MSMEs Remains Applicable Without Reduction
Jakarta – The government has confirmed that the turnover threshold for micro, small and medium enterprises (MSMEs) that receive the Final Income Tax (PPh) rate facility of 0.5 percent remains at IDR 4.8 billion per year.
This was confirmed by various government officials as a form of commitment to continue providing support to the MSME sector amidst global economic challenges.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, firmly stated that there is no plan to lower the threshold to IDR 3.6 billion per year, as previously rumored.
“The threshold remains at Rp4.8 (billion). Rp3.6 (billion) who discussed it?” said Airlangga when met at the Office of the Coordinating Ministry for Economic Affairs, Jakarta.
He also explained that until now there has been no further discussion regarding the plan to change the threshold.
However, he acknowledged that evaluations of tax policies, including those related to the MSME turnover threshold, were still carried out periodically.
“Rp4.8 (billion). Yes, if there is an evaluation, there must be. But now there is no (plan to reduce),” he said.
In line with Airlangga, the Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said that the government is focused on providing various economic stimuli, including extending the validity period of Final Income Tax by 0.5 percent until 2025, as stipulated in Government Regulation (PP) Number 55 of 2022.
“There is no plan to lower the MSME turnover threshold from IDR 4.8 billion to IDR 3.6 billion. The government is focused on providing various stimuli, including MSME stimuli, by completing changes to related PP and PMK,” Febrio explained in his statement.
Secretary of the Coordinating Minister for Economic Affairs, Susiwijono, also emphasized the same thing. According to him, the government is currently only focused on providing various fiscal and non-fiscal incentives to support the sustainability of MSME businesses.
“The government is really focused on efforts to provide various economic stimuli, including specifically for MSMEs. We, together with the Ministry of Finance and other related Ministries/Institutions, are currently focusing on following up on preparing changes to PP, PMK, and other Permen,” he explained.
He ensured that the changes to PP Number 55 of 2022 only focused on extending the 0.5 percent Final Income Tax until 2025 and did not include changes to the turnover threshold.
With this step, the government hopes that MSMEs can continue to be the backbone of the national economy, while maintaining people’s purchasing power and economic stability amid global uncertainty. []
