Tax Incentives for SMEs
SME companies with income not exceeding Rp 600 million per year are not subject to value
added tax. However, Young Entrepreneurs Association (Hipmi) in Indonesia is currently
enhancing yearly ceiling income from Rp 600 million to Rp 2,500 million in order to assist
SME business owners. In addition, dividend derived from the business jointed with
Indonesian SMEs is exempt from tax.