Village Enterprise Leaders Must Grasp Tax Rules Unlike Government

The Purbalingga Tax Office (KPP Pratama Purbalingga) held a briefing for BUMDes managers on 4 November 2025 in Purbalingga. The session covered the tax rights and obligations that apply to village-owned enterprises.

Unlike village government agencies, BUMDes are not required to withhold or collect income tax (PPh) and value‑added tax (PPN) on purchases; their tax obligations follow the rules for ordinary corporate taxpayers. BUMDes with annual turnover below IDR 4.8 billion may apply a final UMKM rate of 0.5 % for four years, while those exceeding the threshold or after that period must use the general rates stipulated in Article 17 of the Income Tax Law.

Accurate understanding is expected to improve tax compliance and strengthen BUMDes as a driver of the village economy and food‑security programs. Guidance on activating a Coretax account and registering the DJP authorization code was also provided to enable self‑managed tax obligations.