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How to Calculate the IDR 4.8 Billion Revenue Threshold under PP 20/2026

Probosuko Adji Irfansah

The IDR 4.8 billion threshold remains, but gross revenue is calculated more comprehensively, including business income, independent professional services, certain final-tax income, and foreign income. This article reads the issue practically so business owners can prepare their tax position before year-end.

This article is based on the IKPI seminar material on Government Regulation No. 20 of 2026 and the PP 20/2026 FAQ module. The official regulation is Government Regulation No. 20 of 2026, effective 22 April 2026.

Quick Take

  • The test uses gross revenue from the last tax year.
  • Business income and independent professional-service income are included.
  • Income already subject to another final tax may still count for threshold testing.
  • Foreign-source income also needs attention.

Practical Impact

  • The decision to use the 0.5% final tax must be supported by calculation, not assumption.
  • Bookkeeping becomes the main control to prove source and character of income.
  • Structures that used to be efficient should be retested against aggregation and exclusion rules.

Common Misreadings

  • Do not look only at one entity’s revenue.
  • Do not treat all digital income as the same.
  • Do not wait for a tax letter before organizing documents.

Action Checklist

  • List taxpayer status and all income sources.
  • Calculate last-year gross revenue on an aggregated basis.
  • Check transitional rules and facility periods.
  • Prepare bookkeeping or net-income norm analysis according to income character.

Simple Example

A person has IDR 1.5 billion catering revenue and IDR 3.5 billion professional-service income. The IDR 5 billion total exceeds the threshold, so the catering business may lose MSME final-tax eligibility for the following year.

Need to map PP 20/2026 exposure for your business? Arunika Consulting can help review taxpayer status, revenue aggregation, and bookkeeping transition before the issue appears in the annual tax return. See our SME Final Income Tax & PP 20/2026 Transition service or contact us.

Note: this content is educational. Final tax treatment must be tested against the taxpayer facts, transactions, regulatory text, and implementing rules.