Small business tax in Indonesia: the 0.5% final income tax, the Rp500 million exemption and paying in Coretax

What to have ready

• An NIK activated as your tax number (NPWP), a Coretax account and a DJP Authorisation Code for electronic signatures.
• Daily or monthly turnover records from every place you sell: your shop, direct orders, apps and marketplaces.
• Invoices or withholding slips from any party that withholds or collects income tax on your sales.
• Your business form (individual, one-person company, cooperative, CV or PT) and the year you first registered as a taxpayer.
• A list of your assets and debts at 31 December for the annual return.
• A bank account or payment channel to pay billing codes.

How to calculate and pay small business tax

1. Activate your NIK as an NPWP

   Individuals running a business must register within 1 month of starting it (PMK 81/2024, Article 17(1)). For Indonesian residents, the NPWP is the NIK once the Directorate General of Taxes (DJP) has activated it; registration is free at coretaxdjp.pajak.go.id or at a tax office (KPP).

2. Check that you can use the final tax

   You must be an individual, a one-person company or a cooperative, with turnover in the previous year of no more than Rp4.8 billion. Income from independent professional services, such as doctors, consultants or content creators, is not covered.

3. Record your turnover every month

   Turnover is all the money your business receives, before costs and before discounts. Add up turnover from every place you sell, and keep a running total from January.

4. Work out the month’s tax

   Individuals pay 0.5% only on the part of turnover after the running total since January passes Rp500 million. One-person companies and cooperatives pay 0.5% of all of the month’s turnover.

5. Pay with a Coretax billing code

   Create a billing code under Pembayaran > Layanan Mandiri Kode Billing using tax account code 411128 and deposit type code 420, then pay by the 15th of the following month. A validated payment counts as filing the monthly return.

6. File your annual return

   Report the year’s turnover, assets and debts in Coretax by 31 March for individuals, or 30 April for companies. Final-tax payments you have made are filled in automatically in the draft return.

The small business final tax rate and compliance costs

Registering for an NPWP, creating billing codes and filing returns in Coretax are free. The final tax is 0.5% of gross turnover each month. For individuals, the part of turnover up to Rp500,000,000 in a year, counted cumulatively from the first month, is not taxed. One-person companies and cooperatives do not get the Rp500 million exemption, so 0.5% applies to all of their turnover.

Turnover is counted before sales discounts, cash discounts or similar reductions (PP 55/2022, Article 60(4)). If turnover passes Rp4.8 billion during the year, the 0.5% rate still applies until the end of that year, and general rates apply from the next year. Filing the annual return late carries a fine of Rp100,000 for individuals and Rp1,000,000 for companies (General Tax Law, Article 7), and tax paid late attracts monthly interest. DJP’s 2025 service guide on the PP 55 certificate still lists CVs, firms, PTs and BUMDes as users; we follow the newer PP 20/2026.

Who can use the 0.5% final tax since PP 20/2026

PP 20/2026, enacted and promulgated on 22 April 2026, amends PP 55/2022. The 0.5% final tax now applies to individual taxpayers, one-person companies and cooperatives with turnover of no more than Rp4.8 billion in a tax year (Article 57(1)). The limit is tested on the previous tax year’s turnover, including income from independent professional services.

The scheme does not cover income from independent professional services, for example doctors, lawyers, consultants, musicians, online content creators, insurance agents or multi-level marketing distributors. Taxpayers who opt for the general rates must notify the DJP and cannot return to the final tax in later years.

If the combined turnover of an individual and all the one-person companies they have founded exceeds Rp4.8 billion in a tax year, none of them can use the final tax in later years. For spouses with separate property or a wife who files separately, both spouses’ turnover is added together to test this limit.

• DJP: Government Regulation 20/2026 amending PP 55/2022 ↗
• DJP: text of PP 20/2026 (PDF) ↗

The Rp500 million threshold and how to calculate

For individuals, the part of turnover up to Rp500,000,000 in a tax year is not subject to income tax, counted cumulatively from the first month of the tax year (PP 55/2022, Article 60(2) and (3), which PP 20/2026 did not change). This exemption does not apply to one-person companies or cooperatives.

Example: your shop takes Rp60,000,000 a month. By the end of August the total is Rp480,000,000, so no tax is due yet. In September the total reaches Rp540,000,000, so the taxable amount is Rp40,000,000 × 0.5% = Rp200,000. From October the tax is Rp60,000,000 × 0.5% = Rp300,000 a month.

If turnover passes Rp4.8 billion during the year, the 0.5% rate still applies until the end of that tax year. From the next year you use the general rates in Article 17 of the Income Tax Law and calculate net income (PP 55/2022, Article 61).

• BPK legal database: Government Regulation 55/2022 (Articles 60–63) ↗

Paying and filing in Coretax

The final tax is paid by the business itself each month by the 15th of the following month (PMK 81/2024, Article 94). In Coretax, payments not linked to a return or a tax bill are made through Pembayaran > Layanan Mandiri Kode Billing, using code 411128-420 for the small business final tax. A taxpayer who has paid and received payment validation is treated as having filed the monthly return on the payment date (PMK 81/2024, Article 171(4)).

The year’s income must still be reported in the annual return. In Coretax, you enter monthly turnover directly and final-tax payments already made are filled in automatically. Full steps for activating your account, creating an authorisation code and filing are in our Coretax guide.

If you deal with parties appointed to withhold or collect tax, such as government agencies, apply in Coretax for a PP 55 certificate through Layanan Wajib Pajak > Layanan Administrasi > Buat Permohonan Layanan Administrasi so that only 0.5% is withheld. According to the DJP, individuals whose turnover has not passed Rp500 million can give a signed statement instead of the certificate.

• Coretaxpedia: three ways to create a billing code ↗
• DJP: service guide for the PP 55 certificate in Coretax ↗
• DJP: annual return guide for individuals with turnover under Rp4.8 billion (PDF) ↗

Record-keeping or bookkeeping

Bookkeeping (pembukuan) means regular records of assets, liabilities, capital, income and costs, closed off with financial statements: a balance sheet and a profit and loss account. Record-keeping (pencatatan) is simpler: turnover data collected regularly and in date order as the basis for working out tax.

Individuals whose business turnover is entirely subject to final tax or not taxable, and no more than Rp4.8 billion a year, may simply keep records, without notifying the use of the deemed-profit method (NPPN) (PMK 81/2024, Article 451). Corporate taxpayers, including one-person companies and cooperatives, must keep full books (Article 448(1)).

Records and supporting documents, such as receipts, app summaries and transfer slips, may be kept electronically or on paper and must be kept for 10 years (Article 454).

• BPK legal database: PMK 81/2024 (Articles 448–456) ↗

Selling through marketplaces or apps: Article 22 income tax

Under PMK 37/2025, electronic commerce platforms appointed by the DJP collect Article 22 income tax of 0.5% of the seller’s turnover shown on the invoice, excluding VAT. Sellers must give the platform their NPWP or NIK and a correspondence address.

Individuals whose turnover for the current year has not passed Rp500 million and who have given the platform a signed statement are not charged. Once turnover passes Rp500 million, the seller submits a new statement by the end of that month, and collection starts the following month.

For final-tax users, Article 22 tax collected by the platform counts towards the final tax. If there is still a shortfall, pay the difference yourself; if too much was collected, you can apply for a refund. The platform’s invoices count as proof of collection, so keep them.

• DJP: PMK 37/2025 on Article 22 tax on online sellers (PDF, July 2026) ↗

Things to check carefully

Frequently asked questions