Minister Clarifies Income Tax for MSMEs to Remain at 0.5% in 2024
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28 November 2023 16:56 WIB
TEMPO.CO, Jakarta - Indonesian Minister of Cooperatives and SMEs Teten Masduki confirmed that the current income tax rate or PPh of 0.5 percent for micro, small, and medium enterprises (MSMEs) will remain in effect in 2024. He said this is necessary to stimulate the country’s economic growth.
His statement brushed off rumors circulating in the community about the government's plan to impose normal tax rates on MSMEs.
“Taxes should not always be viewed as a source of state revenue, but taxes are also [a tool] to stimulate economic growth,” Teten said at the Jakarta Convention Center (JCC), Central Jakarta on Tuesday, November 28.
According to the minister, MSMEs do not need to be taxed too much since they provide other benefits to the country, such as job creation.
Previously, Special Staffer to the Finance Minister Sri Mulyani Indrawati, Yustinus Prastowo, also confirmed this tax issue on his personal X (formerly Twitter) account, @prastow. He said the 0.5-percent income tax for MSMEs will remain in effect next year.
“This will still apply to taxpayers who post turnover at less than Rp4.8 billion per year,” he tweeted on Monday, November 27.
Yustinus said the policy is in line with Government Regulation (PP) No. 23 of 2018 concerning income tax or business income received or acquired by taxpayers with a certain gross turnover.
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