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perseroan-perorangan firm-splitting agregasi-omzet pp-20-2026

One-Person Companies and Anti-Firm-Splitting under PP 20/2026

Probosuko Adji Irfansah

One-person companies can still use the MSME final tax, but PP 20/2026 closes the gap where one person sets up multiple entities to keep each revenue figure below IDR 4.8 billion.

This article is based on two working references: the IKPI seminar material on Government Regulation No. 20 of 2026 and the PP 20/2026 FAQ module prepared from P2Humas FAQ materials. The official regulation is Government Regulation No. 20 of 2026, effective 22 April 2026.

Quick Take

  • Revenue of the individual and all one-person companies they establish is aggregated.
  • If the total exceeds IDR 4.8 billion, the facility cannot be used for the following tax year.
  • Professional services cannot simply be converted into business income through a one-person company.
  • Business substance matters more than legal form.

Practical Impact

  • Splitting operations into multiple one-person companies becomes high risk.
  • Owners need a business map showing links between entities.
  • The tax authority can read patterns that indicate one economic unit.

Common Misreadings

  • Do not assume each one-person company has its own isolated threshold.
  • Do not use family nominees without business substance.
  • Do not mix bank accounts, contracts, and operations between entities.

Action Checklist

  • List all one-person companies owned by the individual.
  • Calculate aggregated revenue for the last tax year.
  • Document each entity’s commercial function.
  • Prepare commercial justification if structures are genuinely separate.

Simple Example

An owner has personal business revenue of IDR 2 billion, Company A at IDR 1.5 billion, and Company B at IDR 1.8 billion. The total IDR 5.3 billion exceeds the threshold, creating risk that the 0.5% facility falls away in the next 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.