JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki responded to the government's plan to impose a normal tariff tax for micro, small and medium enterprises (MSMEs).
The Director General of Taxes at the Ministry of Finance (Kemenkeu) Suryo Utomo said the government would apply the final PPh normal tariff for MSME actors, starting in 2024.
"I will continue to maintain how MSME businesses (get final income tax rates) below 0.5 percent," Teten told reporters in Jakarta, quoted Wednesday, November 29.
Teten assessed that MSMEs do not need to be subject to large taxes because they have contributed to job creation.
"So, MSMEs should not be seen in terms of state income taxes, but how can they create jobs," he said.
Even so, Teten did not deny that the tax was important as a stimulus for Indonesia's economic growth.
"The tax does not always have to be seen as a source of state revenue, but the tax is for the stimulus of economic growth," he said.
Meanwhile, the Special Staff of the Minister of Finance Sri Mulyani Indrawati, Yustinus Prastowo, said that the 0.5 percent income tax rate for MSME actors remained valid.
"The 0.5 percent PPh rate remains VALID for taxpayers whose gross circulation or turnover does not exceed Rp4.8 billion a year," said Yustinus Prastowo via his personal Twitter account @prastow, quoted Wednesday, November 29.
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Yustinus Prastowo said the policy was in accordance with Government Regulation (PP) Number 23 of 2018 concerning Income Tax on Income From Businesses Received or Obtained by Taxpayers Who Have Certain Gross Circulation.
Thus, individual MSME taxpayers who use the 0.5 percent tariff from 2018 may use this tariff until the 2024 tax year.
Meanwhile, the fiscal year 2025 and so on can use the calculation norm, if eligible and turnover has not exceeded R 4.8 billion or uses normal tariffs and provides bookkeeping if the turnover is above IDR 4.8 billion.
As for the new MSME taxpayers, they will still be able to take advantage of the 0.5 percent tariff from turnover to 7 years of tax for individual MSME taxpayers, as well as 4 years of tax for cooperatives, CV and firms. Then, 3 years for limited companies (PT).
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