Government Issues New Regulation for Final Income Tax for Small, Micro and Medium-Sized Business

The Indonesian government issued Government Regulation (PP) No. 20 of 2026, revising the Final Income Tax (PPh Final) at 0.5% for micro, small, and medium-sized businesses (UMKM) as of 22nd April 2026. This regulation specifically aimed at entity Tax Subject (WP), namely individual entity established by single individual and cooperatives to prevent tax evasion by large-scale corporations.