JAKARTA, tax.atmo.co.id - Indonesia's Government Regulation No. 20 of 2026 (PP 20/2026) introduces consolidated revenue rules for married taxpayers who maintain separate property agreements (PH) or choose independent tax filing (MT) when determining eligibility for the 0.5% final income tax (PPh Final) scheme available to micro, small, and medium enterprises (MSMEs).
Under Article 58(2) of PP 20/2026, spouses with PH or MT status must combine their gross revenues when calculating whether their total exceeds the Rp4.8 billion annual threshold set under Article 57(1) of the same regulation.
The rule closes a loophole that technically allowed PH/MT couples to split business revenue across two separate tax subjects, keeping each individual below the threshold while their combined earnings exceeded it.
Why This Matters
The 0.5% final PPh scheme, first introduced under PP 55/2022 and revised by PP 20/2026, applies to eligible taxpayers with gross income not exceeding Rp4.8 billion per tax year. The rate is significantly lower than the progressive general income tax brackets.
Because PH/MT status creates two distinct taxpaying individuals, couples operating businesses together could previously each report separate revenues. PP 20/2026 ends this by mandating consolidated calculation regardless of marital tax status.
Firm Splitting Also Targeted
Beyond married couples, Article 57(2)(e) of PP 20/2026 also targets firm splitting: if an individual taxpayer establishes one or more sole-proprietor companies (perseroan perorangan), the revenues of the individual and all such entities are aggregated. If the total exceeds Rp4.8 billion in any tax year, none of the entities qualify for the final PPh rate.
Effective Date
PP 20/2026 came into force on 22 April 2026, replacing relevant provisions of PP 55/2022.