Tax Chief Urges UMKMs Not to Split Business for 0.5% Final Tax

Tax Director Bimo Wijayanto warned UMKM operators whose turnover has risen above Rp4.8 billion not to split their businesses. The split is aimed at qualifying for the 0.5% final UMKM income‑tax rate that only applies up to that threshold.

The final UMKM tax rate applies to businesses with annual turnover up to Rp4.8 billion; once the threshold is exceeded, taxpayers must comply with Article 17 of the Income Tax Law and keep proper accounting records. Bimo stressed that profit calculation and tax payment must match business performance.

The Ministry of Finance plans to curb the split‑entity practice by building a database in cooperation with the Ministry of Law and exploring links with the coretax system. Authorities aim to detect and stop misuse of the tax scheme. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/berita/nasional/1814664/dirjen-pajak-imbau-umkm-jangan-culas-pecah-usaha-demi-tarif-pph-05).