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tarif-05 subjek-pajak pph-final-umkm pp-20-2026

Who Can Still Use the 0.5% Final Tax after PP 20/2026?

Probosuko Adji Irfansah

The most important question after PP 20/2026 is not whether the rate increased. It is who can still use the 0.5% final tax. The answer is narrower than under the previous regime.

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

  • Eligible: individual business owners.
  • Eligible: one-person companies, as long as exclusions do not apply.
  • Eligible: cooperatives, subject to a limited facility period.
  • No longer new recipients: CVs, firms, ordinary PTs, BUMDes, and BUMDesma.

Practical Impact

  • Choice of business form becomes a more serious tax decision.
  • A one-person company is not automatically safe if used to wrap professional services.
  • Cooperatives must count the four-tax-year facility period from registration.

Common Misreadings

  • Do not equate every small entity with an eligible MSME taxpayer.
  • Do not rely only on revenue below IDR 4.8 billion.
  • Do not ignore transitional rules for existing entities.

Action Checklist

  • Check taxpayer form or individual status.
  • Check source and character of income.
  • Check links with other businesses owned by the same person.
  • Document the basis for using the facility.

Simple Example

Two businesses each earn IDR 1 billion. An individual-owned shop may qualify, while a newly established ordinary PT does not automatically receive the 0.5% final tax.

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.