Saturday, 25 May 2019 | 09:51 WIB

Brawijaya University holds Lecture on Tax Incentives for MSMEs

Brawijaya University held a general lecture on tax incentives for MSMEs

MALANG, NNC - The Economics and Business Faculty (FEB) of Brawijaya University held a public lecture with the theme: "Socialization of Government Regulation No. 23 Yeaer 2018 on Final Income Tax of MSMEs" on September 28 2018 in Hall F Building, FEB Brawijaya University, by presenting Prof. Dr. John Hutagaol (Director of International Taxation) who is also the Chairman of IAI KAPj as the keynote speaker.

The public taxation program was preceded by an opening remarks by Dr. Nurkholis as Dean of Economics Faculty of Brawijaya University, and then continued with a keynote address by the Head of East Java III DGT Regional Office, Dr. Ir Rudy Gunawan Bastari.

The role of MSME is very strategic and has been known as the grassroots of the national economy. The number of MSMEs in Indonesia is very significant, which are estimated to be more than 96% of the population of entrepreneurs in Indonesia and its contribution is around 60% of the state budget.

More than 90% of the workforce is absorbed by the MSME sector and more than 85% of Indonesia's population depends it.

But in the taxation sector, the role of MSMEs has not been maximized in terms of both the number of registered and the amount of tax payments.

Although it has been given the imposition of a final PPh rate of 1% plus convenience in calculating, depositing and reporting according to Government Regulations No. 46 Year 2013, the result is that the compliance of MSME WP is not optimal because there are still many numbers outside the national tax system.

"Based on the evaluation of the implementation of Government Regulation No. 46 of 2013, the government then issues Government Regulation No. 23 Year 2018," John Hutagaol said in a press release on Saturday, Sept 28.

"Government Regulation No. 23 Year 2018 is a tax incentive package for MSMEs, therefore it is optional. The MSMEs WP can choose to apply Final Income Tax of 0.5% or prefer general provisions" said John.

The Government Regulation No. 23 Year 2018 is educating as the WP OP can enjoy MSME facilities for 7 years, and then complies to the general provisions. Also for WP corporate taxpayers and WP non-corporate taxpayers, each of which is 3 years and 4 years, after which compliance is based on general provisions.

"In accordance with Government Regulation No. 23 Year 2018, after the deadline for the facility expires, WP is expected to enter the new level in fulfilling its compliance," John said.

The public lecture, which was attended by more than 150 participants.