How to Calculate Turnover for Mandatory PKP Status Under 2025 Tax

JAKARTA – On Monday 27 October 2025, the Directorate General of Taxation’s contact centre (Kring Pajak) explained how to calculate a business’s gross turnover for determining Pengusaha Kena Pajak (PKP) status. The guidance was delivered through the tax authority’s official phone service.

Under Article 17 of PMK 164/2023, an entrepreneur must be registered as PKP when annual gross turnover exceeds the small‑business limit of Rp4.8 billion. Gross turnover means the total value of taxable goods (BKP) and taxable services (JKP) subject to VAT. Sales that are non‑taxable or exempt from VAT are excluded from the PKP threshold.

Consequently, businesses should separate VAT‑liable sales from exempt ones, because only the former affect PKP eligibility. Exceeding the Rp4.8 billion VAT‑liable turnover obliges registration as PKP and compliance with related reporting. The clarification aims to prevent misclassification and support proper tax compliance.