Final MSME Income Tax Valid in 2025, DJP Online Still Accessible

Head of the BKF Febrio Kacaribu noted that MSMEs are allowed to utilise the final MSME income tax while awaiting the amendment to Gov. Reg. 55/2022. The extension of the final income tax utilisation period is intended to ensure that the sustainability of MSMEs remains unaffected.

“The government is currently formulating the revision. However, while the Gov. Reg. is in progress, MSMEs remain allowed to apply the 0.5% rate in 2025. This is expected to ensure the continuity of MSMEs,” he stated.

On another note, the government has pledged to extend the utilisation of the final MSME income tax scheme for individual taxpayers utilising the scheme for 7 years from 2018 to 2024.

"This extension specifically applies to [individuals] who have benefited from this incentive for 7 years. As such it is extended for another year. Meanwhile, MSME entrepreneurs who have only used the incentive for approximately 2 years still have 5 years remaining,” said MSME Minister Maman Abdurrahman last year.

Corporate taxpayers that have used the MSME final income tax scheme for 3 tax years or 4 tax years are not eligible for the extension.

The utilisation period of 3 tax years applies to limited liability companies, whereas a period of 4 tax years is applicable to cooperatives, limited partnerships (CV), village-owned enterprises/joint village-owned enterprises or sole proprietorships.

According to Maman, the MSME final income tax scheme constitutes a form of government support for UMKM entrepreneurs to grow and transition into large-scale businesses. Once taxpayers reach the status of large-scale businesses, they are no longer permitted to apply the MSME final income tax scheme in calculating and paying taxes.

“Taxpayers whose turnover has exceeded the threshold [exceeding IDR 4.8 billion] should now have the courage to self-declare," remarked Maman.

Aside from the extension of the final MSME income tax, the public has also focused on the certainty surrounding the use of DJP Online. As is known, as the main platform for digital tax services, the coretax administration has been operating since early 2025.

Nevertheless, DJP Online remains accessible for several types of services, such as the filing of the annual tax return. This raises the question concerning the time limit for taxpayers to use the DJP Online.

Director General of Taxes Suryo Utomo stated that DJP Online will remain available for filing and amending annual tax returns for the 2024 tax year until the statute of limitation for tax collection expires.

“Until when will DJP Online be available? Until it is needed to amend the 2024 tax return and before the statute of limitation expires,” he said.

Suryo explained that DJP Online, the former tax service platform, remains accessible for several aspects of services, such as the filing of the annual tax returns. DJP Online can be used to fulfil tax obligations until the 2024 tax year.

Additionally, for subsequent tax years, tax obligations can be fulfilled through the Coretax system.

In addition to the two main topics above, several other interesting developments have been highlighted over the past week. These include the continuation of the use of EFIN in tax administration, updates on the tax consultant certification test (ujian sertifikasi konsultan pajak/USKP in Indonesian), the performance of Indonesian tax revenues in the first quarter of 2025 and President Prabowo Subianto's statement on Labour Day.

The following is a complete review of the tax articles.

EFIN to Be Replaced When Coretax Is Fully Operational

The Directorate General of Taxes (DGT) will replace the Electronic Filing Identification Number (EFIN) function with the DGT Coretax account activation feature.

This implies that individual and corporate taxpayers will no longer need an EFIN to perform online tax administration through the coretax system, including filing the annual tax return.

"The use of EFIN to access DGT digital services for the first time will be replaced by the account activation feature on DGT Coretax,” claimed the Director of Tax Dissemination, Services, and Public Relations of DGT Dwi Astuti.

Attention to the Scope of USKP Materials

The Tax Consultant Certification Organising Committee (Komite Pelaksana Panitia Penyelenggara Sertifikasi Konsultan Pajak/KP3SKP) will provide participants with details regarding the scope of materials for the tax consultant certification test (ujian sertifikasi konsultan pajak/USKP in Indonesian).

Head of KP3SKP, Suyuti, mentioned that information related to USKP materials has been shared with participants to improve the pass rate. Participants are encouraged to prepare according to the outlined details of the materials.

“If participants check the exam materials, they will only see the topics, such as income tax or general provisions and tax procedures. This time, we will provide more detailed information on the scope of the materials, allowing participants to better focus on their studies,” Suyuti explained.

Tax Revenues Only Reach 14.7% of Target

The Ministry of Finance reported that tax revenue realisation from January to March 2025 amounted to IDR322.6 trillion, representing a mere 14.7% of the target of IDR2,189.3 trillion.

The marks a year-on-year (yoy) contraction of 18.1%. Despite the decline, Minister of Finance Sri Mulyani Indrawati expressed optimism that tax revenue performance will improve in the upcoming months.

“This is evident in the increase in taxes from IDR187.8 trillion [in January-February 2025] to IDR322.6 trillion [at the end of March 2025]," she said.

2,477 Corporate Taxpayers Extend Annual Tax Returns

The DGT noted that as of 30 April 2025 at 13:00 WIB, 2,477 corporate taxpayers had submitted a notification of the extension of the 2024 Annual Tax Return filing period.

Director General of Taxes Suryo Utomo clarified that the General Provisions and Tax Procedures (GPTP) Law permits corporate taxpayers to extend the filing period for the annual income tax return as necessary insofar as they fulfil certain requirements.

“This does not necessarily mean that they avoid filing [the Annual Tax Return], but what they file is a temporary tax return,” he elaborated.

Prabowo: Taxes Are for High-Income Individuals

During a speech before workers commemorating International Labour Day on 1 May 2025, President Prabowo Subianto addressed the issue of taxes.

Prabowo emphasized that current tax regulations ensure that high rates are only imposed on high-income individuals, whereas low-income earners are subject to minimal or no taxation if their income is below the personal tax relief (penghasilan tidak kena pajak/PTKP in Indonesian).

“High taxes are for people with high income,” Prabowo stated. “If you don’t earn a substantial salary, why should you be taxed? However, being taxed a small amount is reasonable, wouldn't you agree?” (sap)