Types of Tax Payments that MSME Players Should Know

Types of Tax Payments that MSME Players Should Know

PPh - 27 Nov, 2023 15:11 WIB

Every business actor, including Micro, Small and Medium Enterprises (MSMEs), has the responsibility to fulfill tax obligations. Knowing the various types of tax payments is very important for them. This not only ensures compliance with tax regulations, but also helps them manage their finances more efficiently.


If you are an MSME player who is still confused about the types of tax payments, this article will provide a complete understanding to help you face tax challenges with more confidence.


Types of Tax Payments for MSMEs

Different types of businesses have different tax obligations. In the case of MSMEs, tax is only imposed on those who have reached the turnover limit in accordance with the tax payment provisions.


As an MSME owner, there are two types of tax payments that must be paid monthly or annually. The explanation is as follows:


1. Monthly Tax

Monthly tax is a type of tax that must be reported and paid every month via a Periodic Tax Return (SPT). This type of tax includes:

  • PPh Article 21: Must be paid by SMEs and employees who are subject to income tax. This tax is deducted from wages, salaries, honorarium and employee benefits.
  • Income Tax Article 23: More aimed at medium businesses. Included in this category are interest payments, royalties, bonuses, gifts, rent and certain services.
  • Income Tax Article 26: Must be fulfilled when making transactions with Overseas Taxpayers (WP). This includes payments of dividends, salaries, interest, rent, royalties and the like.
  • Income Tax Article 4 paragraph (2): Related to rental transactions, transfer of rights to land/buildings, and construction businesses.
  • UMKM Final PPh PP 23/2018: This is a tax incentive for SMEs with a certain gross turnover.
  • VAT: Mandatory for Taxable Entrepreneurs (PKP), including SMEs with turnover under IDR 4.8 billion.

2. Annual Tax

Meanwhile, annual tax is a tax obligation that must be paid or reported every year, which is also known as Annual Tax.


MSMEs in the medium scale business category will be subject to corporate income tax. This type of tax payment can be paid in one payment each year or through monthly installments of Income Tax Article 25.


So, those are the two types of taxes that MSMEs must comply with. Understanding the types of tax deposits is not easy, especially for those with limited resources. Therefore, Ideatax provides tax expert services to help manage tax aspects in MSME businesses in accordance with applicable regulations.


With the help of our competent tax experts, you can focus on developing your MSME business, while the tax aspects are taken care of properly. Don't let taxation be an obstacle, now, with Ideatax, you have the right partner to optimize your tax obligations and ensure the smooth running of your MSME business.

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