Depok, November 28, 2023 – Tax education for Micro, Small, and Medium Enterprises (MSMEs) is crucial to enhance their understanding of tax obligations and their benefits. With proper knowledge of taxation, MSME entrepreneurs can optimize tax advantages, minimize the risk of violations, and promote sustainable business growth.

In response to this need, the Faculty of Administrative Sciences, Universitas Indonesia (FIA UI), held a sharing session for MSME entrepreneurs in Mulyaharja Thematic Village, Ciharashas, Bogor City, on Saturday, November 25, 2023. The event aimed to educate MSMEs in the Mulyaharja Tourism Village to expand their understanding of taxation, which directly impacts their business operations.

“This event is expected to enhance MSME entrepreneurs’ knowledge and understanding of their tax obligations,” said Dr. Milla Sepliana Setyowati, M.Ak., CA, a Lecturer in Fiscal Administration. She further expressed hope that the program would encourage MSME entrepreneurs to fulfill their tax responsibilities accurately and on time.

Wulandari Kartika Sari, S.Sos., MA, another Lecturer in Fiscal Administration at FIA UI, also led a sharing session. She explained that MSMEs have specific taxation regulations, starting from Government Regulation No. 46 of 2013 (PP 46/2013), which was later revised to Government Regulation No. 23 of 2018 (PP 23/2018), and most recently updated through Government Regulation No. 55 of 2022 (PP 55/2022). These regulations are commonly known as Final Income Tax for MSMEs (PPh Final UMKM).

“The purpose of these specific regulations is to simplify tax compliance for MSMEs. The Final Income Tax scheme applies to taxpayers with a certain gross turnover and can only be utilized for a limited period,” Wulandari added.

During the session, Dr. Milla elaborated on the latest regulation (PP 55/2022), stating that individual MSME entrepreneurs with an annual gross turnover of up to IDR 4.8 billion are subject to a final income tax rate of 0.5% for a specific period.

Riri, an MSME entrepreneur from Saung Eling in Mulyaharja Village, highlighted the challenges faced in running her business. “As entrepreneurs, we struggle with capital because our business is established through collective efforts and self-funding, which limits our financial resources. We also face difficulties in maintaining accounting records and managing finances,” she explained.

Riri emphasized the need for continuous assistance to support business growth. She believed the educational session would significantly help MSME entrepreneurs manage their businesses more effectively and efficiently.

Irma Arlini Dewi, S.T.P., M.Sc., Head of Research and Development at Bappeda (Regional Development Planning Agency) Bogor City, acknowledged the importance of FIA UI’s initiative. “This event aligns with several targeted programs we are planning. We hope to continue collaborating on sustainable programs that support MSME entrepreneurs and provide resources to help them meet their business needs,” she said.

This educational initiative by FIA UI is part of a broader effort to empower MSME entrepreneurs with essential tax knowledge, fostering better financial management and ensuring compliance with tax regulations.