Types Of Taxes Worn To MSMEs, Business Owners Must Understand

Illustration of MSMEs (Freepik/our-team)

YOGYAKARTA - Every Micro, Small and Medium Enterprise (MSME) has an obligation to pay taxes to the state. MSME actors must understand the percentage and how to calculate the final tax. However, there are still many people who do not know the type of tax imposed on MSMEs.

Provisions regarding MSME taxes have actually been regulated for a long time in Law (UU) number 36 of 2008 concerning Income Tax (PPh). However, these regulations then experience changes as the year goes on. The latest rules regarding the provisions to tax rates for MSMEs are contained in Law Number 7 of 2021 concerning Harmonization of Tax Regulations which are clarified by PP number 55 of 2022.

However, before knowing the latest provisions regarding Final PPh, you need to know the type of tax imposed on MSMEs.

In the previous regulation in PP number 23 of 2018, MSMEs with a turnover of less than IDR 4.8 billion one year will be subject to a final tax of 0.5%. That means that the tax burden will be evenly imposed on MSMEs that have a turnover of IDR 10 million to IDR 1 billion per year, namely covering a final income tax of 0.5%.

The new rule of Article 7 Paragraph (2a) in the HPP Law, MSMEs that do not yet have a turnover of IDR 500,000,000 in one year will not be subject to PPh. Taxes of 0.5% are only imposed if Anda's MSMEs have a turnover of up to or more than IDR 500 million per year.

So what are the tax obligations for MSME actors?

Monthly taxes are tax dependents that must be paid by MSMEs every month. This monthly tax consists of the following six rules:

SMEs that have employees with the amount according to the category will be subject to income tax. PPh 21 must be deducted from salaries, wages, allowances, honorariums, as well as payments under any name and form related to the work, services, and activities of domestic taxpayers.

PPh 21 which has been cut and then deposited into the state treasury. MSME actors must submit a proof of withholding income tax 21 to the employee or employee concerned.

PPh 23 is more intended on medium-scale businesses. This tax obligation is carried out if the business owner transacts with dividend payments or divides profits to shareholders in the form of a company, with a maximum share ownership nominal of 25%.

Tax obligations are also carried out when the company pays royalties, loan interest except for the bank, handover of gifts, as well as other awards and bonuses deducted by Article 21. If the business owner pays the lease for the use of assets, rewards, related to management services, consultant services, technical services, construction services, and other services according to the Regulation of the Minister of Finance number 141/PMK.03/2015. Business owners who transact PPH 23 are obliged to cut the tax value of the WP of the Domestic Agency or WP of Personal Persons.

PPh 26 is paid when making transactions with foreign taxpayers. This transaction can be in the form of payment of salaries, services, dividends, interest, royalties, rents, and other payments in PPh 21 and PPh 23. Business owners can cut Pph 26 for these transactions from foreign taxpayers, either foreign bodies or foreign citizens.

This provision of taxpayers is income tax on land and/or building lease transactions, transfer of land and/or building rights, dividends paid to private persons, as well as income for businesses carried out by construction services. This tax cut against MSMEs is final. Income that has been cut is not calculated again in the SPT Annual PPh Agency.

This rule is the Final PPh that must be known by MSME actors. Final PPh is obtained from operating income obtained by taxpayers with a certain nominal value of gross circulation. However, PP 23/2018 is an incentive for MSME actors. Especially for corporate taxpayers who are allowed to choose the type of PPh Final UMKM tariff. Because the value is smaller than the income tax fee for the Normal Agency, which has a high value of up to two digits.

WP Badan yang bisa menggunakan tariff PPh FINAL UMKM berdasarkan PP 23/2018 memiliki jangka waktu berbagai tergantung kategori usaha, apakah PT, CV, perusahaan, atau komperasi.

Another tax obligation that must be paid by MSME actors is Value Added Tax (VAT) after serving as PKP (taxable entrepreneur). Private Taxpayers and corporate taxpayers whose turnover is still below Rp4.8 billion can own it as a PKP.

Business owners with PKP status have an obligation to issue Tax Invoices, can credit Input Taxes that are paid excessively into tax reductions when reporting Annual Tax Returns. Debt VAT can also be credited for the future or can choose restitution (excessively paid tax return).

MSME actors also have the obligation to report and pay annual taxes within the annual period. corporate income tax is imposed on medium-scale business actors. This tax is paid once a year through PPh 25 installments which are paid once a month.

There have been several changes to the Final PPh tax provisions after the issuance of PP 55/2022. Previously, PP 23/2018 regulated the Final PPh tax of 0.5%. In the latest regulations, now use the final PPh calculation scheme of 0.5% without the need to submit a PP certificate 23/2018 (PP Group 23/2018) as long as it still meets the criteria and still has a tax use period.

Such is the review of the types of taxes imposed on MSMEs and the latest PPh Final 2022 rules. This taxpayer regulation needs to be known and understood by every MSME actor in Indonesia.

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