Your Turnover Fell? Indonesia's 0.5% Tax Can Still End on December 31, DJP's FAQ Says

TL;DR

An updated DJP FAQ on PP 20/2026 says individuals and PT Perorangan whose combined turnover had passed Rp 4.8 billion can use the 0.5% rate only until the end of 2026, even if turnover then falls.

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The Facts

Indonesia's tax office has spelled out a consequence of April's rewrite of the 0.5% final tax that is easy to miss. If an individual's turnover, together with that of any PT Perorangan they founded, had already passed Rp 4.8 billion by April 22, 2026, the rate runs only until December 31, 2026. A quieter 2026 does not bring it back for 2027. Spouses' turnover goes into the same test (question 20), so on our reading the same applies to a couple's combined total.

The statement is in the FAQ on Government Regulation 20/2026 (PP 20/2026) from the Directorate General of Taxes (DJP), version 1.1, updated on October 19. An FAQ does not change the law, but it shows how the tax office reads it.

DJP's own worked example (questions 40 and 41):

• In 2025, an individual has Rp 3 billion of business turnover and the PT Perorangan they founded has Rp 2 billion. Combined: Rp 5 billion.
• In 2026, both may still use 0.5%, under the transitional rule in Article II point 1(f), which covers taxpayers who were already on the rate.
• In 2026, turnover falls to Rp 2 billion each. Combined: Rp 4 billion, back under the limit.
• Can they use 0.5% in 2027? DJP's answer: "Tidak" (No). The individual and every PT Perorangan they founded are out.

The basis is Article 57. Paragraph 2(e) excludes an individual together with all the PT Perorangan they founded once combined turnover exceeds Rp 4.8 billion "in one tax year". Paragraph 4, as quoted by DDTC News, says those taxpayers cannot use the final rate "for the following tax years". We did not find a provision offering a way back. DJP's question 42 says eligibility is reassessed on turnover history, without saying how many years back that history goes.

What counts toward the Rp 4.8 billion, according to the FAQ:

• Business income and professional income, even though professional income itself cannot be taxed at 0.5% (questions 27 and 28).
• Both spouses' turnover and any PT Perorangan either founded (question 20), plus minor children's turnover where the couple has no separation of property (question 34). The FAQ does not spell out the 0.5% test for couples with a separation agreement.
• Income from abroad, according to DJP's June explainer.
• Rent and loan interest only if the activity is business-like, for example actively seeking tenants and running it continuously. This is a self-assessment (question 31).
• Not salary or dividends (question 31).

For later years, the test looks at turnover in the previous tax year (question 27). DDTC News' reading, in its piece on several PT Perorangan under one founder, is that a founder who crosses the limit during 2026 stays on 0.5% for all of 2026 and leaves from 2027.

There is one piece of good news, for individual taxpayers. If your seven years on 0.5% ended in 2024 and you filed your 2025 return on deemed profit (NPPN) or full books because you did not know about the extension, DJP says you can still use the rate for 2025 and 2026. The right ends only if you formally elect the general rules in writing, and question 37 says you can correct the 2025 return. The FAQ does not state a deadline for doing so.

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Where You Stand on January 1

The PT, CV and Firma rows are our arithmetic from the three- and four-tax-year windows in the old PP 55/2022, counted from the tax year of registration. DJP's FAQ says only that these entities keep the rate until their window ends (question 25). Enforcea notes that passing the limit ends it early.

Leaving the 0.5% rate means keeping books and paying tax on net profit. As an illustration, take a PT Perorangan with Rp 4 billion of turnover and a 20% margin, at the 22% corporate rate halved by Article 31E: about Rp 88 million of tax, against Rp 20 million at 0.5%. On those assumptions the two meet at a margin of about 4.5%, so a thin-margin business may lose little. The example ignores non-deductible costs, the cost of keeping books and dividend tax on the founder, and the 0.5% is due even in a loss year. Your own numbers will differ.

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Bali Zero Take

The Hidden Insight

The limit now behaves like a one-way door, and in Bali one route through it deserves attention: a lease. FAQ question 32 deals with a landlord whose yearly rent is under Rp 4.8 billion but who receives several years at once. DJP's answer is that turnover follows your method: with full books it follows the books, with simple records it follows cash received. DJP stops there. Our reading, not DJP's: if your rental activity is business-like under question 31 and your records are cash-based, a multi-year prepayment received in one tax year could take you over the limit by itself, and paragraph 4 would then apply to the years after it, costing the 0.5% on your other business. The FAQ does not say how this interacts with the separate final tax on land and building rent. Get advice before you sign, not after.

Our Analysis

Foreign owners are less directly exposed, but not untouched. Only Indonesian citizens can found a PT Perorangan, so a foreigner's company is a regular PT. The FAQ does not mention PT PMA, but its wording covers every PT other than a PT Perorangan: on our reading, one registered from April 22, 2026 has no access to 0.5%.

The mixed household is where it may bite. The FAQ does not address mixed-nationality couples. Our reading is that a business run by an Indonesian spouse would be tested together with the other spouse's turnover, so a resident foreign spouse's business or professional income could count too, including income from abroad. Have this checked before the year closes.

Our Advice

Do not split a business into more PT Perorangan to stay under the limit: the regulation adds them together. Do not send a written election for the general rules until you have run the numbers, because under question 37 that notice is what ends the right. If you are moving to the general rules in 2027, have your books ready from January 1.

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Next Steps

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Sources

• DJP, FAQ on PP 20/2026, version 1.1, updated October 19, 2026 (PDF, in Indonesian)
• DJP, explainer on PP 20/2026, June 3, 2026
• DDTC News, June 4: Article 57 and the transitional rule
• DDTC News, June 4: several PT Perorangan under one founder
• Justisio, June 2: the PT and CV windows
• Enforcea, July 2: how the PT window is counted
• Smartlegal: PT Perorangan and foreign citizens
• Bali Zero, June 13: our full guide to PP 20/2026

Quotes are our translation from Indonesian. This article is general information, not tax advice for your situation.

Primary Source

Bali Zero Editorial, from DJP's FAQ on PP 20/2026

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