Changes in Final Income Tax for Taxpayer with Certain Business Gross Turnover from Government Regulation No. 46 Year 2013 (PP No. 46 Tahun 2013) toGovernment Regulation No. 23 Year 2018 (PP No. 23 Tahun 2018) starting July 1, 2018.
The changes that are stipulated in Government Regulation Nov. 23 Year 2018 and its corresponding regulations (MoF Decree No. 99/PMK.03/2018 and DGT Letter No. S-421/PJ.03/2018), among others:
- The Income Tax Rate from 1% to 0.5%
- There is a limited time period where Taxpayer can utilize the Final Income Tax facility (7 years, 4 years, or 3 years).
- Corporate Taxpayer in the form of Limited Partnership or Firm that was established by several Individual Taxpayers with special expertise, which delivers services similar to the services in relation to independent work, is no longer able to utilize this facility.
- There is Income Tax Withholding or Collecting requirement by the Tax With-holding or Collecting Agent for every transaction that is subject to Income Tax with-holding or collection.