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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. Contact us.

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