Calculation of Annual Turnover and Turnover Limit

Annual turnover becomes the determining factor in this scheme. Entrepreneurs are obliged to calculate their turnover monthly. If the total cumulative turnover within one fiscal year does not exceed Rp500 million, then that income is not subject to Income Tax (PPh). However, if the turnover exceeds that limit, the entrepreneur is still subject to the Final Income Tax of 0.5% on the remaining turnover above Rp500 million until the end of the tax year.