Sole-Proprietor PT (Perseroan Perorangan)

A Sole-Proprietor PT (Perseroan Perorangan) is an Indonesian limited liability company established by a single individual that meets the Micro and Small Enterprise (UMK) criteria under Law 11/2020 on Job Creation (as amended by Law 6/2023 and GR 7/2021). For tax purposes, it is treated as a corporate taxpayer, so income up to IDR 4.8 billion in annual turnover may qualify for the 0.5% final PPh under GR 20/2026 (which revises GR 55/2022), provided the business activity is not an independent-profession service. Unlike individual taxpayers, a Sole-Proprietor PT does not enjoy the non-object facility on the first IDR 500 million of turnover. It is also known as PT Perorangan or Perseroan UMK.

This article is for education, not tax advice.

Example

Mr. Reza incorporated PT Reza Sukses Mandiri (a Sole-Proprietor PT) to trade motorcycle spare parts. His 2026 turnover reaches IDR 3 billion. Because the entity is a Sole-Proprietor PT and the activity is not an independent profession, PT Reza Sukses Mandiri may apply the 0.5% final PPh under GR 20/2026. Calculation: 0.5% x IDR 3 billion = IDR 15 million per year, reported through Coretax. Note: if Mr. Reza had set up the Sole-Proprietor PT for consulting services (an independent profession), the 0.5% facility would not apply.

Source: Law 11/2020 jo. Law 6/2023, GR 7/2021, GR 20/2026 Article 56