For years the answer to “what tax will my company pay?” had a comfortable first move: if turnover stays under IDR 4.8 billion, you may qualify for the 0.5% final rate on gross revenue under PP 55/2022. Simple, cheap, easy to explain.
For PT and CV, that route has closed. PP 20/2026 removed PT and CV from the 0.5% final tax regime with effect from 21 April 2026.
If your plan assumed 0.5%, the plan needs redoing.
What the regime was
PP 55/2022 let qualifying small taxpayers pay 0.5% of gross turnover as a final tax, instead of calculating profit and paying corporate income tax on it. Final meant final: no deductions, no year-end reconciliation on that income. Attractive for a young company with thin margins and simple books.
It was always time-limited and always conditional. What changed in 2026 is who may use it at all.
What applies to a PT PMA now
The standard corporate income tax regime. Headline rate 22%, charged on taxable profit rather than turnover.
The relief that matters for smaller companies is the 50% reduction available where gross turnover is under IDR 50 billion, applied to the portion of taxable income corresponding to the first IDR 4.8 billion of turnover. Companies below that threshold face an effective 11% on that slice, with 22% above it.
This is a genuinely different calculation, not a rate swap. Under 0.5% your tax was a function of revenue and your costs were irrelevant to it. Under Article 17 your tax is a function of profit, so your bookkeeping, your deductible expenses and your documentation now directly determine what you pay.
Why this is not simply worse
Turnover-based tax punishes low-margin businesses. A trading company running 5% margins on IDR 4 billion of revenue paid IDR 20 million under the final regime regardless of whether it actually made money. A loss-making year still produced a tax bill.
Profit-based tax follows economic reality. Real costs reduce it. A bad year costs less.
The trade is administrative. You now need books that stand up: properly recorded expenses, supporting documents, correct withholding on payments out. Companies that treated bookkeeping as a formality because the tax was a flat percentage of revenue no longer have that luxury.
What to do about it
If you were relying on 0.5%, recalculate on a profit basis and check the cash-flow effect. For healthy margins the bill may rise. For thin margins it may fall.
If you hold a Suket issued before the cutoff, your transitional position depends on when it was obtained and on your specific facts. Do not assume it carries forward; confirm it.
If your bookkeeping has been light-touch, this is the change that makes it expensive. Under a profit-based regime, an undocumented cost is a cost you cannot deduct.
If you are still choosing a structure, note the regime now differs by entity type, which makes the PT-versus-alternatives question a live tax question, not only a corporate one.
The point
The 0.5% rate made tax planning almost optional for small companies. Its removal for PT and CV puts accounting quality back at the centre. That is not a burden if the books were being kept properly. It is a real problem if they were not.
Correct at the date of publication. Transitional treatment is fact-specific. Check your position with us before filing on either basis.