How Much Is The Taxable Business Turnover For MSMEs? This Is An Explanation And How To Report The MSME SPT, This Is The Explanation

Illustration of MSMEs (Unsplash)

YOGYAKARTA The government continues to impose taxes on owners of Micro, Small and Medium Enterprises (MSMEs) in Indonesia. However, taxes imposed on MSMEs have provisions regulated by the Government. MSME tax payments are made taking into account turnover. Then how much taxable business turnover for MSMEs?

As is known, the Government imposes taxes as a source of state revenue. One form of tax imposed is the Income Tax (PPh) which applies to all taxpayers (WP).

Quoted from the official website of the Ministry of Finance, PPh is also imposed on MSME actors. The amount of tax rates in this sector was originally 1 percent which was then lowered by the Government with a large final tax of 0.5 percent, referring to Government Regulation (PP) No. 23 of 2018.

However, it must be noted that not all MSME actors are taxed. PPh is imposed on MSME actors with the provisions of turnover which in one year exceeds the provisions of the Government.

It should be noted that turnover is the total value of product sales in a certain period. Turnover can also be equated with the term dirty income.

The government itself has provisions for the circulation of gross or non-taxable turnover for MSME actors. The regulation is contained in Government Regulation (PP) Number 55 of 2022.

Article 60 PP 55/2022 explains that private MSMEs who have a turnover of IDR 500 million within one year are not subject to the final income tax, which costs 0.5%.

Article 60 paragraph (3) PP 55/2022 explains that PPh-free business turnover is the gross amount of the cumulative business since the first tax period.

With this provision, private MSMEs who have a turnover of Rp. 500 million a year will not be subject to PPh. However, if the cumulative turnover in one year exceeds Rp. 500 million, then PPh will be subject to 0.5 percent.

However, it must be remembered that even though there is a regulation, MSME entrepreneurs categorized as turnover below Rp500 million are still required to submit Annual Notifications (SPT) and record their turnover every month.

MSME owners can report SPT online without having to go to the tax office. The way to report the MSME SPT is as follows.

That's information related to taxable business turnover for MSMEs. Visit VOI.ID to get other interesting information.