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An overview from PB Taxand, Taxand Indonesia
Government Regulation No. 20/2026 has amended Indonesia’s 0.5% Final Income Tax regime for domestic taxpayers with annual gross turnover of up to IDR4.8 billion. Eligibility is now limited to individuals, single-member individual limited liability companies and cooperatives, while several other entity types are excluded.
The regulation broadens the turnover definition, introduces aggregation rules for individuals and their companies and expands the professional services that do not qualify for the regime. It also removes the general limitation period, allowing eligible taxpayers other than cooperatives to use the rate without a fixed time limit. Cooperatives remain subject to a four-year period.
Our Indonesian member firm, PB Taxand provides an overview of the amendments, eligibility requirements and transitional provisions, which you can read here.
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