Indonesia State News Announces Extension of 0.5 Percent Final Income Tax Incentive for MSMEs

The Indonesian National News Agency (Antara) Dec. 16 announced the extension of the 0.5 percent final income tax (PPh) rate for micro, small, and medium enterprises (MSMEs), and other incentives for MSMEs and small entrepreneurs. The announcement includes: 1) an extension of the 0.5 percent PPh rate for MSMEs with annual turnover of 500 million Indonesian rupiahs (US$31,173) to 4.8 billion rupiahs (US$299,279); 2) an additional year of the 0.5 percent rate, until Dec. 31, 2025, for MSMEs that have used the rate for seven years; 3) up to seven years total of the 0.5 percent rate, for MSMEs that ...