Enter These Criteria? Mrs. Sri Mulyani said you can not pay taxes

Enter These Criteria? Mrs. Sri Mulyani said you can not pay taxes

Minister of Finance Sri Mulyani Indrawati wants to provide justice for the Indonesian people in terms of taxation. Where the rich had to pay taxes, while the poorest were exempted and even given aid.

Who are they?

The first is people with incomes below IDR 4.5 million per month or IDR 54 million per year. Income below this limit is referred to as non-taxable income (PTKP). So there is no obligation to pay taxes. “Those who can’t afford to pay taxes, the poor, those who don’t get income will get support and assistance to the community,” Sri Mulyani explained in a Webinar organized by the KPK.

Tax exemption is also granted to traders who run their own businesses or individual MSMEs. For example, warteg traders, coffee shops and warmindo with a maximum turnover of Rp 500 million per year. Previously, all individual MSME actors were taxed because there was no set turnover limit that was subject to tax. For example, a yearly income of only Rp 50 million or even Rp 100 million per year is still subject to 0.5% final income tax.

However, with the latest regulation, namely the Law on the Harmonization of Tax Regulations which was just passed last week at the DPR RI Plenary Session, individual MSMEs only need to pay taxes if their annual turnover is above Rp 500 million. Sri Mulyani ensured that this was a form of justice given by the state to the people. “In this case, taxes and non-tax revenues are instruments of justice for all Indonesian people.