The tax for MSMEs is not too big. The tax will also only be imposed if their income exceeds Rp500 million.
Jakarta (ANTARA) - The Investment Ministry/Investment Coordinating Board (Kemeninves BKPM) has asked micro, small, and medium enterprises (MSMEs) to not be afraid of paying the business tax.

Most entrepreneurs have not created business identification numbers (NIB) out of fear of paying taxes, Spokesperson for the Investment Ministry/Investment Coordinating Board Tina Talisa noted.

"The tax for MSMEs is not too big. The tax will also only be imposed if their income exceeds Rp500 million," she said during a workshop here on Monday.

Moreover, the business tax for MSMEs is only 0.5 percent of their total excess income, she added.

For instance, if the turnover of a certain business reaches Rp600 million within a year, then a tax of just 0.5 percent tax will be imposed on Rp100 million, that is, Rp500 thousand.

"How much if Rp500 thousand is divided by 12 months? Then it only needs to pay around Rp40 thousand per month in tax," Talisa elaborated.

Meanwhile, the tax incentive for MSMEs continues to be provided through the Online Single Submission (OSS) system, she informed.

The incentive aims to alleviate MSMEs' tax burden in order to encourage them to invest.

Talisa also urged MSMEs to legalize their business without delay by creating NIBs since that would support all licensing requirements and push up sales.

For a number of e-commerce platforms, an NIB is required for receiving an official store label, which can significantly increase sales since it improves customers' trust.

"Since the Job Creation Law was ratified in 2020, the NIB creation process is no longer complicated thanks to significant paring down of bureaucracy," Talisa said.

NIB has also become the only permit or legal business requirement in Indonesia. MSMEs no longer need to register for other permits or certificates such as the Trade Business License Permit (SIUP) or Business Certificate (SKU).

An NIB can be created through electronically integrated business licensing, namely OSS. An NIB document is akin to a citizenship ID for businesspersons. It is also necessary for obtaining other licenses such as halal as well as Food and Drug Supervisory Agency (BPOM) certification.

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Translator: Pamela Sakina, Fadhli Ruhman
Editor: Rahmad Nasution
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