On 12 August 2026, the DGT announced a suite of tax measures celebrating National MSME Day, targeting the 64 million micro, small, and medium enterprises (UMKM). Key policies include: (1) Final Income Tax (PPh Final) at 0.5% of gross turnover for micro enterprises with annual turnover ≤ IDR 500 million, (2) simplified monthly reporting via Coretax mobile app with pre-filled data, (3) VAT exemption for UMKM not registered as VAT collectors, and (4) tax amnesty for UMKM first-time filers covering 2020-2024 periods. The DGT also deployed mobile tax units to traditional markets for on-site assistance.
Key Takeaways
- Progressive Formalization: Incentives are designed to graduate informal businesses into the tax net without shock.
- Digital Inclusion: The Coretax UMKM module features voice-guided filing in local languages for low-literacy entrepreneurs.
- Monitoring Impact: The DGT will track UMKM tax base growth quarterly, aiming for 30% increase in registered UMKM taxpayers by 2027.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement