Govt Eases SME Tax Administration
20 March 2015 14:46 WIB
TEMPO.CO, Jakarta - The government plans to improve tax laws for individual taxpayers with income from small and medium enterprises. One of them is to eliminate the obligation for SME businesses to create ledgers of their revenues.
"We are simplifying things for them by allowing regular, daily financial statements, and we will only tax one percent of their turnover," Director General of Taxes Sigit Priadi Pramudito said yesterday.
Under tax rules for SMEs, taxpayers with businesses garnering a turnover of Rp300 million to Rp4.8 billion per year are subject to a one-percent annual income tax.
The easing, Sigit said, will be given for a period of three years, afterwhich the taxpayers would have to start recording their financial activities neatly through bookkeeping and accounting. Then, they will become business taxpayer, imposed with a regular tax rate of 25 percent.
ADITYA BUDIMAN
