| Full title | Peraturan Pemerintah Nomor 20 Tahun 2026 tentang Perubahan atas Peraturan Pemerintah Nomor 55 Tahun 2022 tentang Penyesuaian Pengaturan di Bidang Pajak Penghasilan |
|---|---|
| Citation | PP 20/2026 |
| Jurisdiction | Indonesia |
| Enacted by | President of Indonesia |
| Signed | 22 April 2026 |
| Promulgated | 22 April 2026 |
| Effective | 22 April 2026 |
| Implements | Pasal 4 ayat (2) huruf e of the Income Tax Law (UU 7/1983, as last amended by UU 6/2023) |
| Amends | PP 55/2022 |
Peraturan Pemerintah 20/2026 (Peraturan Pemerintah Nomor 20 Tahun 2026 tentang Perubahan atas Peraturan Pemerintah Nomor 55 Tahun 2022 tentang Penyesuaian Pengaturan di Bidang Pajak Penghasilan) is an Indonesian government regulation that amends the rules on the final income tax charged on the business income of taxpayers with a limited gross turnover. It was signed by President Prabowo Subianto and promulgated on 22 April 2026, taking effect on that date, and was recorded in the State Gazette as Lembaran Negara 2026 No. 43.[1] It belongs to the field described at public finance and non-tax revenue in Indonesia, and was issued to implement Pasal 4 ayat (2) huruf e of the Income Tax Law as last amended by Undang-Undang 6/2023.[2]
The regulation amends Peraturan Pemerintah 55/2022, which had set a final tax of 0.5 per cent on the business turnover of individuals and several kinds of business entity for a limited number of tax years.[3][4] It confines the corporate taxpayers eligible for that tax to single-founder sole-proprietor companies and cooperatives, restates the exclusions and the rule for measuring turnover, and deletes the article that fixed the time limits of the scheme.[5][6] It also inserts a provision stating that bribes, including bribes paid to foreign public officials, are not deductible costs.[7]
Transitional provisions carry the final tax forward for individuals and cooperatives whose periods under the 2022 regulation had ended or were ending, and let other business entities finish the periods they had already begun.[8] CRPG's regulatory tracker published an analysis of the regulation in July 2026 and corrected it against the official text in September 2026.[9]
Pasal 56 to Pasal 63 of Peraturan Pemerintah 55/2022 governed the final income tax (Pajak Penghasilan yang bersifat final) on business income received by taxpayers whose gross turnover (peredaran bruto) did not exceed Rp4.8 billion in a tax year.[2:1][3:1] In its original form, Pasal 57 opened the scheme to individuals and to corporate taxpayers organised as cooperatives, limited partnerships (persekutuan komanditer), firms, limited liability companies and village-owned enterprises.[3:2] Pasal 59 limited the period of final taxation to seven tax years for individuals, four for cooperatives, limited partnerships, firms, village-owned enterprises and single-founder sole-proprietor companies, and three for limited liability companies.[4:1]
The general elucidation of Peraturan Pemerintah 20/2026 gives three reasons for the amendment. Individuals and single-founder companies often lack the knowledge, skills and time to keep books, which the final tax on turnover is meant to spare them. Some taxpayers had used the final rate to avoid tax, and the amendment adjusts the exclusions to prevent this. In connection with Indonesia's accession to the Organisation for Economic Co-operation and Development, an express rule was needed, on the organisation's recommendation, that bribes paid to domestic and foreign public officials cannot be deducted from gross income.[10]
Pasal I of the regulation makes six changes to Peraturan Pemerintah 55/2022, and Pasal II contains the transitional provisions and the commencement rule.[8:1][1:1]
As restated, Pasal 56 subjects the business income of domestic taxpayers with a limited gross turnover to a final income tax at a rate of 0.5 per cent. Four kinds of income fall outside it: income of individuals from services connected with independent work, income received abroad on which tax is owed or paid abroad, income already taxed under a separate final-tax rule, and income excluded from the tax base.[11] Pasal 56 ayat (4) lists the independent services concerned. They include the work of lawyers, accountants, architects, doctors, consultants, notaries, land deed officials, appraisers and actuaries; performers, artists and creators of content shared online, among them influencers, bloggers and vloggers; athletes; advisers, teachers and trainers; authors, researchers and translators; and advertising agents, project supervisors, intermediaries, sales agents, insurance agents and distributors in multi-level marketing.[11:1]
Set against the 2022 text, the restated Pasal 56 ayat (1) no longer limits the final tax to a certain period (dalam jangka waktu tertentu), consistent with the deletion of Pasal 59. The restated list of independent services adds sculptors, painters and online content creators to the performers, and closes several categories with the words "and other similar" professions.[11:2][12]
Under the amended Pasal 57 ayat (1), the scheme covers individuals and two kinds of corporate taxpayer, a sole-proprietor company (perseroan perorangan) founded by one person and a cooperative (koperasi), whose gross turnover does not exceed Rp4.8 billion in a tax year.[5:1] Pasal 57 ayat (2) excludes a taxpayer who elects the ordinary income tax rates, and must notify the Directorate General of Taxes of that choice; a single-founder company whose founder has special skills and which supplies services of the same kind as the founder's independent services; a company that enjoys certain income tax facilities, including those for special economic zones; a permanent establishment; an individual whose turnover, together with that of every single-founder company he or she has set up, exceeds Rp4.8 billion in a tax year; and a cooperative four tax years after the year of its registration.[5:2] The exclusion of single-founder companies set up by skilled professionals takes the place of one in the 2022 text, which had applied to limited partnerships and firms formed by several individuals with special skills supplying services of the same kind as independent services.[5:3][3:3] A taxpayer excluded on the last two grounds, or by its own election, may not return to the final tax in later years.[5:4]
Pasal 58 measures gross turnover as the whole of the turnover from business and from independent services in the last tax year before the year concerned, whether that income was taxed on a final or a non-final basis and including turnover received abroad, counted before sales, cash and similar discounts.[6:1] Where a husband and wife have a written agreement separating their property and income, or the wife elects to exercise her tax rights and obligations separately, the turnover of both spouses is combined; the elucidation adds the income of their minor children.[6:2][13] For the test of Pasal 57 ayat (2) huruf e, the combined figure also includes every single-founder company either spouse has established.[6:3] Pasal 59, which had set the time limits of the scheme, is deleted.[6:4]
A new Bagian Keempat inserted in Bab IV of Peraturan Pemerintah 55/2022 adds Pasal 20A. It provides that expenditure in the form of a bribe, a gratification or any other payment within the meaning of the laws on corruption or bribery, including a payment to a foreign public official, is not a cost of obtaining, collecting or maintaining income that may be deducted from gross income.[7:1] The elucidation defines a foreign public official as any person appointed or elected to a legislative, executive, administrative or judicial office of a foreign state, any person performing a public function for a foreign state, including for a public body or public enterprise, and any official or representative of a public international organisation.[10:1]
Pasal II angka 1 governs taxpayers already within the scheme when the regulation took effect. An individual whose period of final taxation under Peraturan Pemerintah 55/2022 ended in tax year 2024 may remain within it for tax years 2025 and 2026; an individual or single-founder company whose period ended in tax year 2025 may remain within it for tax year 2026. In both cases the taxpayer must still meet the criteria of the 2022 regulation.[8:2] A cooperative registered before the regulation took effect whose period ends between tax years 2024 and 2029 is subject to the final tax for tax years 2025 to 2029 on the same condition.[8:3] Certificates of final-tax status issued under Pasal 63 remain valid for the same tax years in the case of individuals and single-founder companies, and in the case of cooperatives without a stated end year; in each case they lapse once the holder no longer meets the criteria.[8:4]
Limited partnerships, firms, limited liability companies other than single-founder companies, and village-owned enterprises whose periods had not yet ended may continue to pay the final tax until those periods end. Individuals and single-founder companies caught by the new exclusions in Pasal 57 ayat (2) huruf b and huruf e may continue until the end of tax year 2026.[8:5] The implementing regulations of Peraturan Pemerintah 55/2022 remain in force so far as they do not conflict with the amendment, and Pasal II angka 2 brings the regulation into force on its promulgation.[8:6][1:2]
K104 · Work URI /akn/id/act/pp/2026/20 · RegVault PP_20_2026[P] PP 20/2026, Pasal II angka 2 and closing formula (Ditetapkan di Jakarta pada tanggal 22 April 2026; Diundangkan di Jakarta pada tanggal 22 April 2026), Lembaran Negara 2026 No. 43, Tambahan Lembaran Negara No. 7173. regulation_id PP_20_2026. ↩︎ ↩︎ ↩︎
[P] PP 20/2026, preamble, Menimbang huruf a to d (Pasal 56 to Pasal 63 of PP 55/2022; implementing Pasal 4 ayat (2) huruf e of Undang-Undang Nomor 7 Tahun 1983 tentang Pajak Penghasilan, as last amended by Undang-Undang Nomor 6 Tahun 2023) and Mengingat angka 1 to 3. regulation_id PP_20_2026. ↩︎ ↩︎
[P] Peraturan Pemerintah Nomor 55 Tahun 2022 tentang Penyesuaian Pengaturan di Bidang Pajak Penghasilan, Pasal 57 ayat (1) and ayat (2) in their original form. Lembaran Negara 2022 No. 231, Tambahan Lembaran Negara No. 6836. regulation_id PP_55_2022. ↩︎ ↩︎ ↩︎ ↩︎
[P] PP 55/2022, Pasal 59 ayat (1) and (2) in its original form. Lembaran Negara 2022 No. 231. regulation_id PP_55_2022. ↩︎ ↩︎
[P] PP 20/2026, Pasal I angka 4, restating Pasal 57 ayat (1) to (5) of PP 55/2022. regulation_id PP_20_2026. ↩︎ ↩︎ ↩︎ ↩︎ ↩︎
[P] PP 20/2026, Pasal I angka 5 and 6, restating Pasal 58 ayat (1) to (3) and deleting Pasal 59 of PP 55/2022. regulation_id PP_20_2026. ↩︎ ↩︎ ↩︎ ↩︎ ↩︎
[P] PP 20/2026, Pasal I angka 1 and 2, inserting Bagian Keempat in Bab IV and Pasal 20A into PP 55/2022. regulation_id PP_20_2026. ↩︎ ↩︎
[P] PP 20/2026, Pasal II angka 1 huruf a to g. regulation_id PP_20_2026. ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎
[E] "Final Income Tax Adjustments and Transitional Rules: PP 20/2026", CRPG regulatory tracker, crpg.id, 8 July 2026. https://crpg.id/final-income-tax-adjustments-and-transitional-rules-pp-20-2026/ (free sign-in required on crpg.id) The post carries a correction dated 27 September 2026, made after a check against the official text, and a notice that it is AI-generated; it is cited for the record of the development, not for its legal content. ↩︎
[P] PP 20/2026, Penjelasan, Umum, and Pasal I angka 2 (Pasal 20A). regulation_id PP_20_2026. ↩︎ ↩︎
[P] PP 20/2026, Pasal I angka 3, restating Pasal 56 ayat (1) to (4) of PP 55/2022. regulation_id PP_20_2026. ↩︎ ↩︎ ↩︎
[P] PP 55/2022, Pasal 56 ayat (1) and ayat (4) in their original form ("dikenai Pajak Penghasilan yang bersifat final dalam jangka waktu tertentu"). regulation_id PP_55_2022. ↩︎
[P] PP 20/2026, Penjelasan, Pasal I angka 5 (Pasal 58 ayat (2)). regulation_id PP_20_2026. ↩︎