Income-Tax Tariff for Taxpayers with Certain Gross Turnovers Updated

The government has issued Regulation of the Government on Income Tax for Business Incomes Which Are Received or Obtained by Taxpayers with Certain Gross Turnovers (“ Regulation 23/2018 ”), which renews thefinal income-tax tarifffor taxpayers who haveannual gross turnovers ≤ IDR 4.8 billion.Prior to the issuance of Regulation 23/2018, these same matters were regulated under Regulation of the Government on Income Tax for Business Incomes Which Are Received or Obtained by Taxpayers with Certain Gross Turnovers (“ Regulation 46/2013 ”). [1] New Income-Tax TariffPursuant to Regulation 23/2018, taxpayers, including both individuals and corporate (i.e.,cooperatives,limited partnerships [“ CV ”],firmapartnerships and limited-liability companies [“ PT ”])which have annual gross turnovers ≤ IDR 4.8 billion during a single tax year will now have a 0.5% final income-tax tariff imposed upon them over certain time periods. [2] The time periods for the imposition of this new income-tax tariff are as follows: [3]