Taxation ยท KBLI 47111

Retail & SME Store Tax

Retail stores and SMEs enjoy ease of taxation with 0.5% Final Income Tax from gross turnover as long as business turnover is below IDR 4.8 Billion. However, PKP obligations and VAT collection still apply if turnover exceeds the threshold. Arunika Consulting helps retail SMEs understand tax rights and obligations to remain compliant without burdening operations.

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What usually goes wrong

  • PKP and VAT Threshold

    If turnover exceeds IDR 4.8 Billion, mandatory to become PKP and collect 11% VAT affecting selling prices.

  • Daily Turnover Recording

    Dense retail transactions require integrated POS system for tax turnover recap.

  • VAT-Exempt vs VAT-Taxable Goods

    Stores selling mixed goods (staples VAT-exempt, non-staples VAT-taxable) must separate recording.

What we do

  1. 01

    SME vs PKP Status Evaluation

    Calculating whether staying in 0.5% Final Tax scheme or switching to PKP is more advantageous based on margin and turnover.

    • Optimal tax burden
    • Data-based decision
    • Clear growth planning
  2. 02

    POS-Tax Integration Setup

    Connecting POS system with tax reporting for automation of monthly turnover recap.

    • Accurate recap
    • Admin time savings
    • Clean audit trail
  3. 03

    PKP Obligation Training

    Assistance with transition to becoming PKP: registration, tax invoice issuance, and VAT Tax Return reporting.

    • Smooth transition
    • Lower penalty risk
    • Operations not disrupted

Related regulations

  • PP 55/2022

    Adjustment of Regulations in Income Tax Field

    0.5% Final Income Tax from gross turnover for SMEs with business turnover below IDR 4.8 Billion per year.

  • PMK-164/2023

    Criteria and/or Details of Basic Needs Goods

    List of basic needs goods exempt from VAT including rice, sugar, etc.

  • UU HPP

    Law No. 7/2021 on Harmonization of Tax Regulations

    Regulates PKP turnover threshold, VAT rates, and latest SME Income Tax provisions.

If the tax office starts asking questions

The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.

How we handle tax disputes

Frequently Asked Questions

When must retail stores become PKP?

If turnover in one year exceeds IDR 4.8 Billion, mandatory to register as PKP and collect 11% VAT on taxable goods sales.

Are staples sold in stores subject to VAT?

No. Basic needs goods such as rice, sugar, salt, meat, eggs, etc. are exempt from VAT according to PMK-164/2023.

What if turnover drops below 4.8M after becoming PKP?

PKP status is not automatically revoked. Can apply for PKP revocation if meeting requirements, but the process takes time.

Who handles my tax work?

Your tax work is handled by Arunika's tax consultants. We confirm the scope, deadlines and price before work starts.

What should I do if I receive an SP2DK letter or tax audit notice?

Contact us early. We help analyze the risk, prepare supporting documents, draft the response, and assist discussions with the tax office.

What does tax planning cover?

We review your structure, transactions and available incentives so tax is calculated under the rules, without crossing into tax evasion. The outcome depends on your facts, so we do not promise a savings figure.

Related Industries

Tell us about your business

Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.

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