JAKARTA, DMTAX – The government has confirmed that all individual taxpayers operating in micro, small, and medium enterprises (MSMEs) can continue to use the final income tax rate of 0.5% until 2029.

Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that this provision applies to MSMEs with a maximum annual turnover of IDR 4.8 billion. The government, Airlangga said, is preparing a revision to Government Regulation 55/2022 as the legal basis for extending the 0.5% final income tax regime for individual taxpayers.

"Final income tax is guaranteed to be valid until 2029. MSMEs will only be subject to a final income tax rate of 0.5% for turnover up to IDR 4.8 billion," he said, as quoted on Saturday (04/10/2025).

The continuation of the final income tax scheme for MSMEs is part of the government's stimulus package. This policy was also discussed in a limited coordination meeting with the Minister of Finance, the CEO of BPI Danantara, the Minister of National Development Planning/Head of Bappenas, and the Head of Statistics Indonesia (BPS).

Airlangga previously stated that the extension of this scheme aims to ease the tax burden and simplify taxpayers' administrative obligations.

In 2025, the government allocated a budget of IDR 2 trillion to support the program, with the number of registered MSME taxpayers reaching 542,000.

The government needs to revise PP 55/2022 to extend the final income tax period for individual MSMEs until 2029. This regulation will provide a legal framework for MSMEs in fulfilling their tax obligations.

Director General of Taxes Bimo Wijayanto stated that the Ministry of Finance has coordinated with relevant ministries to revise Government Regulation 55/2022 as the legal basis for extending the utilization period for final income tax rates for MSMEs until 2029.