Summary
The Net Income Calculation Norm (Norma Penghitungan Penghasilan Neto, NPPN) is a set of percentages issued by Indonesia's Director General of Taxes for computing net income of certain individual taxpayers. NPPN is aimed at taxpayers exempt from the bookkeeping requirement, namely those with gross turnover under IDR 4.8 billion per tax year. The norm percentage is applied to gross turnover so the taxpayer can simply record receipts without preparing formal profit and loss statements and balance sheets.
What NPPN Is
NPPN is a method of computing net income that substitutes for bookkeeping. The reasoning is simple: for small and mid-size taxpayers, the burden of full bookkeeping is disproportionate to the income earned. NPPN offers a middle path: the taxpayer multiplies a preset percentage by gross turnover to obtain net income.
Percentages differ by Business Field Classification (KLU) and by the taxpayer's registered region. Regions are split into three: ten major provincial capitals (Jakarta, Medan, Palembang, Bandung, Semarang, Surabaya, Manado, Makassar, Denpasar, Pontianak), other provincial capitals, and other areas. The highest percentages generally apply in the ten major capitals on the assumption of higher margins.
Legal Basis
The legal basis for NPPN rests in Article 14 of Law No. 7 of 1983 on Income Tax, as last amended by Law No. 7 of 2021 (Harmonization of Tax Regulations Law, UU HPP). Article 14 paragraph (2) gives the NPPN option to individual taxpayers with gross turnover under IDR 4.8 billion a year.
The norm percentages are set out in Director General of Taxes Regulation No. PER-17/PJ/2015 on Net Income Calculation Norms. The regulation attaches tables of norms for hundreds of KLUs, ranging from agriculture to professional services. For MSME taxpayers who previously used the 0.5 percent final income tax and whose eligibility period has ended, Articles 57 to 65 of Government Regulation No. 55 of 2022 govern the transition to the normal regime, including the NPPN option.
The notification requirement is set in Article 14 paragraph (3): the taxpayer must file the notification within three months of the start of the tax year. Missing the deadline triggers paragraph (4): the taxpayer is deemed to have chosen bookkeeping for that tax year.
Who Can Use NPPN
NPPN is open to three categories of individual taxpayers:
- Taxpayers running business activities (trade, services, small manufacturing) with gross turnover under IDR 4.8 billion.
- Taxpayers in independent professions (doctors, lawyers, notaries, public accountants, consultants, architects, and similar fields) with gross fees under IDR 4.8 billion.
- A combination of both, as long as total gross turnover stays under IDR 4.8 billion.
MSME taxpayers still in the 0.5 percent final income tax window do not need NPPN. They apply the final rate to gross monthly turnover. Once the final regime period ends (seven years for individuals), the NPPN option reopens.
NPPN is not available to corporate taxpayers. Corporations must keep books under all circumstances.
How to Calculate NPPN
The calculation flow is short. The taxpayer follows these steps:
- Compute annual gross turnover per KLU.
- Multiply gross turnover by the norm percentage for that KLU and region.
- Sum net income across all activities.
- Subtract Non-Taxable Income (PTKP) according to family status.
- The result is Taxable Income. Apply the Article 17 rate schedule to obtain income tax due.
For taxpayers combining several KLUs, compute net income separately per KLU then add them at the final stage. Separation matters because norm percentages can differ significantly across activities.
Rates and Thresholds
A sample of NPPN percentages for popular KLUs in the ten major provincial capitals:
| KLU | Activity | Norm Percentage |
|---|---|---|
| 86202 | General practitioner | 50% |
| 86201 | Specialist doctor | 50% |
| 69100 | Legal activities (lawyers, notaries) | 51% |
| 69200 | Accounting, audit, tax consulting | 50% |
| 70209 | Management consulting | 50% |
| 71101 | Architecture | 50% |
| 47711 | Apparel retail | 30% |
| 56101 | Restaurant | 25% |
The percentage used is the one applicable to the taxpayer's registered region. Areas outside the ten major capitals and other provincial capitals typically use lower percentages, assuming smaller margins.
The IDR 4.8 billion threshold is cumulative per year. If gross turnover crosses the threshold in any tax year, the taxpayer loses NPPN eligibility for the following year and must keep full books.
How to File via Coretax
Starting tax year 2026, all NPPN notifications must be filed through Coretax DJP. The steps:
- Log into Coretax at coretaxdjp.pajak.go.id using NPWP and password.
- Open the Administrative Services menu.
- Select service code AS.04 (Notification of NPPN Use and Cash-Basis Bookkeeping).
- Select sub-service AS.04-01.
- Complete the form: primary KLU, additional KLUs (if any), target tax year, and any extra information the system requests.
- Submit and download the Electronic Receipt (BPE).
The BPE is the official proof of filing. Keep it with your annual tax records. The deadline for a January to December tax year is 31 March of the same year. For taxpayers starting a new business mid-year, count three months from the month the business begins.
Worked Example
Dr. Rina runs a private practice in Jakarta. Annual gross practice income is IDR 720 million. Her family status is married with two children (K/2). NPPN-based income tax calculation:
- Gross turnover: IDR 720,000,000
- KLU 86202 in the ten major capitals: 50 percent norm
- Net income: 50% x IDR 720,000,000 = IDR 360,000,000
- PTKP K/2: IDR 67,500,000 (IDR 54M individual + IDR 4.5M married + IDR 9M two dependents)
- Taxable Income: IDR 360,000,000 - IDR 67,500,000 = IDR 292,500,000
- Income tax due (Article 17 rates):
- 5% x IDR 60,000,000 = IDR 3,000,000
- 15% x IDR 190,000,000 = IDR 28,500,000
- 25% x IDR 42,500,000 = IDR 10,625,000
- Total tax due: IDR 42,125,000
Compare with bookkeeping: if Dr. Rina can document IDR 300 million in operating expenses a year (assistant salary, clinic rent, medical supplies), her bookkeeping net income would be IDR 420 million, higher than the IDR 360 million NPPN result. In this case, NPPN gives both administrative savings and lower tax due.