Indonesia self-employed tax calculator (PPh Final UMKM 0.5%)
Indonesia self-employed tax calculator (An individual running a business in Indonesia whose turnover last year was at most Rp4.8 billion can pay a final income tax of 0.5% of turnover, with the first Rp500 million of the year tax-free; free professionals and anyone who opts out pay 5% to 35% on profit after the non-taxable allowance.
Worked example · Net income / year
With Business turnover for the year of 1,200,000,000, this model computes Net income / year 296,500,000 IDR. See the full working.
✓ Verified against 7 self-test cases Updated for 2026 · sources checked 2026-10-31
How PPh Final UMKM (MSME final income tax) in Indonesia is calculated
The **0.5% final tax** (PP 55/2022 as amended by PP 20/2026) is charged on turnover — what you receive before discounts — not profit, so expenses do not reduce it. An individual pays nothing on the first **Rp500 million** of the year’s turnover: Rp1.2 billion of turnover pays 0.5% of Rp700 million, **Rp3.5 million**. Eligibility is tested on **last year’s** turnover: at most **Rp4.8 billion** (art. 58). A business that passes Rp4.8 billion during the year keeps the 0.5% to the end of that year and moves to the normal rates the year after (art. 61(1)) — Rp5 billion this year still pays 0.5% of Rp4.5 billion, Rp22.5 million.
**PP 20/2026**, in force from **22 April 2026**, removed the time limit for individuals and took **free professions** out of the scheme — doctors, lawyers, accountants, consultants, artists, online content creators and others listed in article 56(4). They, and anyone who opts for the normal rates, pay **5% to 35%** on bookkept profit after PTKP (Rp54 million for a single person). The same Rp1.2 billion business with Rp900 million of costs pays **Rp30.9 million** that way.
The page applies the April 2026 rules to the whole year and does not model the transitional cases of PP 20/2026 article II, the deemed-profit (NPPN) method or BPJS for the self-employed. Estimate, not tax advice.
Worked example
ShowHide the full working: 7 inputs, 9 computed steps
| Inputs | |
|---|---|
| Business turnover for the year (IDR) | 1,200,000,000 |
| Business expenses for the year (IDR) | 900,000,000 |
| How you are taxed | 0.5% final tax on turnover (PP 55/2022) |
| Free profession (doctor, lawyer, consultant, artist, influencer…) | no |
| Marital status on 1 January | Not married (TK) |
| Dependants you fully support (at most 3 count) | 0 |
| Turnover went above Rp4.8 billion in an earlier tax year | no |
| Computed by the engine | |
| Final Applies ✓ pinned | yes |
| Over Ceiling This Year | no |
| Final tax (0.5% above Rp500 million) ✓ pinned | 3,500,000 IDR |
| Profit | 300,000,000 IDR |
| PTKP (non-taxable income) | 54,000,000 IDR |
| Taxable income at normal rates | 0 IDR |
| Tax at 5–35% | 0 IDR |
| Income tax / year ✓ pinned | 3,500,000 IDR |
| Net income / year ✓ pinned | 296,500,000 IDR |
Every computed row comes from the engine, run on the inputs above. Rows marked ✓ pinned are also fixed by a published self-test, so a change to the model that moved them would fail its own tests.
Frequently asked questions
Is the 0.5% UMKM tax still available in 2026?
Yes. PP 20/2026 keeps the 0.5% final rate for individuals whose turnover in the previous year was at most Rp4.8 billion and removes the time limit that used to apply to individuals. It no longer applies to free professions.
What happens if my turnover passes Rp4.8 billion this year?
You keep paying 0.5% until the end of that tax year (PP 55/2022 art. 61(1)); from the next year you pay the normal 5–35% rates on profit, and you cannot return to the final tax.
Do I pay tax on the first Rp500 million?
No. Under article 60(2) of PP 55/2022 an individual pays no final tax on the first Rp500 million of turnover in a tax year; the 0.5% applies to the part above it.
Can a freelancer use the 0.5% final tax?
Not if the work is a free profession. From 22 April 2026 PP 20/2026 excludes services such as doctors, lawyers, consultants, artists, influencers, writers and agents, who pay the normal 5–35% rates on profit.
Berapa pajak UMKM untuk omzet Rp1,2 miliar setahun?
Rp3,5 juta: 0,5% dari bagian omzet di atas Rp500 juta, yaitu Rp700 juta.
Sources
- PP 55/2022 arts. 56–57 as amended by PP 20/2026: 0.5%, Rp4.8 billion · checked 2026-10-31
- PP 55/2022 arts. 60(2), 61(1): first Rp500 million tax-free; 0.5% to year-end · checked 2026-10-31
- UU 7/2021 (HPP), art. 7 PTKP and art. 17 rates in the Income Tax Law · checked 2026-10-31
Estimate. Not tax advice. The verification badge means the model reproduces the stated formula through 7 self-test cases; the sources support that the formula matches the rules.
Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 7 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.
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