TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Taxation on micro businesses delayed

Director General of Taxation Fuad Rahmany says the development of a micro-business tax structure has been delayed due to a lack of data

Hans David Tampubolon (The Jakarta Post)
Jakarta
Thu, April 26, 2012

Share This Article

Change Size

Taxation on micro businesses delayed

D

irector General of Taxation Fuad Rahmany says the development of a micro-business tax structure has been delayed due to a lack of data.

“We have difficulties calculating [appropriate taxation levels] because data on micro businesses is still unclear,” Fuad told reporters at the Finance Ministry on Wednesday.

Fuad said that the number of micro-businesses in Indonesia was immense and taxing them could significantly increase the country’s tax revenues.

According to data from the Central Statistics Agency (BPS), there are 53.8 million micro, small and medium enterprises currently operating in the country. The BPS estimated that they contributed nearly 57 percent of the country’s gross domestic product (GDP).

Despite the significant number of micro, small and medium scale businesses, the taxation office only managed to register 1.9 million corporate taxpayers.

Separately, Cooperatives and Small and Medium Enterprises Minister Syariefuddin Hasan said that micro businesses would not be taxed in 2012.

Syarief, however, said that businesses that were categorized as small- and medium-scale enterprises would be taxed. “Small and medium enterprises will be taxed by 2 percent at the most,” he said.

Syarif said that his ministry had been coordinating with Finance Minister Agus Martowardojo on the development of the taxation plan.

“The finance minister has responded positively to the plan,” Syarif said.

Syarif expected the taxation plan for small and medium enterprises to be implemented within the 2012 fiscal year.

“The sooner, the better,” he said.

Previously, the taxation office had said that a plan to regulate taxation on micro, small and medium businesses was under deliberation.

Under the planned regulation, micro businesses that have at least Rp 300 million (US$ 32,700) of yearly turnover would be subject to 0.5 percent income tax.

Those that have yearly turnovers between Rp 300 million and Rp 4.8 billion would be taxed at 1 percent, plus a 1 percent value-added tax.

Small enterprises are categorized as those that have assets valued between Rp 50 million and Rp 500 million with an annual turnover of between Rp 300 million and Rp 2.5 billion, while medium enterprises are those that have assets valued between Rp 500 million and Rp 10 billion and have a yearly turnover between Rp 2.5 billion and Rp 50 billion.

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.