# PPh Final UMKM 0,5% 2026 — Indonesia self-employed tax

Source page: https://valem.run/calculators/indonesia/self-employed

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.

**Tax year:** 2026

## How it 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

With Business turnover for the year of 1,200,000,000, this model computes Net income / year 296,500,000 IDR.

## Inputs

| Name | Label | Type |
| --- | --- | --- |
| `annualTurnover` | Business turnover for the year (IDR) | number |
| `annualExpenses` | Business expenses for the year (IDR) | number |
| `regime` | How you are taxed | string |
| `freeProfession` | Free profession (doctor, lawyer, consultant, artist, influencer…) | boolean |
| `overCeilingBefore` | Turnover went above Rp4.8 billion in an earlier tax year | boolean |
| `maritalStatus` | Marital status on 1 January | string |
| `dependants` | Dependants you fully support (at most 3 count) | number |

## Sources

- [PP 55/2022 arts. 56–57 as amended by PP 20/2026: 0.5%, Rp4.8 billion](https://jdih.kemenkeu.go.id/dok/pp-20-tahun-2026) (checked 2026-10-31)
- [PP 55/2022 arts. 60(2), 61(1): first Rp500 million tax-free; 0.5% to year-end](https://jdih.kemenkeu.go.id/dok/pp-55-tahun-2022) (checked 2026-10-31)
- [UU 7/2021 (HPP), art. 7 PTKP and art. 17 rates in the Income Tax Law](https://jdih.kemenkeu.go.id/dok/uu-7-tahun-2021) (checked 2026-10-31)

## What this page claims

The Valem engine reproduces this model's formula through 7 self-test cases. That shows internal consistency, not that the formula matches current law; the cited sources are the evidence for that. Estimate, not tax advice.

## For agents

- Model manifest (formula, constants, test vectors): https://valem.run/calculators/indonesia/self-employed.json
- Compute by URL: https://valem.run/calculators/indonesia/self-employed.json?annualTurnover=1200000000
- MCP: https://valem.run/mcp/calculators (call `calculate` with calculator `indonesia/self-employed`)