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Tax Planning in Micro, Small and Medium Enterprises in Indonesia

Article  in  INTERNATIONAL JOURNAL OF ADVANCED RESEARCH IN ENGINEERING & TECHNOLOGY · September 2020

DOI: 10.34218/IJARET.11.9.2020.093

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International Journal of Advanced Research in Engineering and Technology (IJARET)
Volume 11, Issue 9, September 2020, pp. 947-958, Article ID: IJARET_11_09_093
Available online at http://www.iaeme.com/IJARET/issues.asp?JType=IJARET&VType=11&IType=9
ISSN Print: 0976-6480 and ISSN Online: 0976-6499
DOI: 10.34218/IJARET.11.9.2020.093

© IAEME Publication Scopus Indexed

TAX PLANNING IN MICRO, SMALL AND

MEDIUM ENTERPRISES IN INDONESIA
Suparna Wijaya
Polytechnic of State Finance STAN, Indonesia

ABSTRACT
Micro, Small and Medium Enterprises (SMEs) are growing rapidly in Indonesia.
Based on data from the Ministry of Cooperatives and SMEs processed from the
Central Statistics Agency, it shows that in 2017, the number of MSME business units
grew to 62,922,617 or 99.99%, which absorbed a workforce of 116,673,416 or
97.02%, and contributed 60% of Gross Domestic Product (GDP). This study aims to
evaluate the tax planning carried out by MSMEs by using a case study on CV ABC for
the 2018 fiscal year. CV ABC is a company engaged in the trade of new cylinders,
spare parts, maintenance and refilling Light Fire Extinguishers (APAR). The research
method used in this research is descriptive qualitative to reveal the phenomenon that
is developing in the community. The results of this study indicate that income tax
planning carried out by CV ABC using facilities in Government Regulation Number
23 of 2018. While the value-added tax planning carried out by CV ABC uses facilities
in Minister of Finance Regulation Number 74 / PMK.03 / 2010. And with the tax
planning, in 2018 CV ABC succeeded in making tax savings for the 2018 fiscal year.
Key words: Tax savings, Government Regulation Number 23 the Year 2018,
guidelines for crediting input taxes
Cite this Article: Suparna Wijaya, Tax Planning in Micro, Small and Medium
Enterprises in Indonesia, International Journal of Advanced Research in Engineering
and Technology, 11(9), 2020, pp. 947-958.
http://www.iaeme.com/IJARET/issues.asp?JType=IJARET&VType=11&IType=9

1. INTRODUCTION
PJA Adriani's in Waluyo (2011) defines taxes as dues to the state (which can be forced) which
is owned by those who are obliged to pay according to the regulations, with no achievements,
who can be directly appointed, and whose use is to finance public expenditures related to the
state's duty to administer the government. This largest state revenue must be optimally
increased so that the country's growth rate and development implementation can run well
(Dewi & Jati, 2014).
The government makes revenue from the taxation sector the biggest contributor to state
revenue sources (Supramono, 2005). This is evidenced by the 2019 State Revenue and
Expenditure Budget (APBN) which targets to reduce the taxation sector to IDR1,424 Trillion

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 Tax Planning in Micro, Small and Medium Enterprises in Indonesia

or around 82.5% of the total state revenue plan. However, the realization of increased tax
revenue every year turned out to be insufficient to meet the targets set in the APBN. Based on
DGT's annual report data, it is known that from 2014 to 2018, DGT was only able to collect
an average of 87.44% of the target set in the APBN.
The realization of the tax revenue is certainly supported by various business fields, one of
which is the Micro, Small and Medium Enterprises (MSME) sector. MSMEs have an
important and strategic role in development. MSMEs are also proven not to be affected by the
global crisis. It was proven when in 1997 - 1998, UMKM was a sector that still stood strong.
Data from the Central Statistics Agency shows that after the 1997-1998 economic crisis, the
number of MSMEs grew so much that in 2012 there were 56,534,592 units or 99.99% of the
total number of Indonesian entrepreneurs. The data from the Ministry of Cooperatives and
SMEs processed from the Central Statistics Agency shows that in 2017, the number of
MSME business units grew to 62,922,617 or 99.99%, which absorbed 116,673,416 or
97.02%, and contributed 60% of Gross Domestic Product (GDP).
With this fantastic amount, it triggered the Directorate General of Taxes to provide tax
facilities for MSMEs by issuing Government Regulation Number 46 of 2013 or well-known
as a final income tax policy of 1%. In 2018, the government replaced the regulation with
Government Regulation No. 23 of 2018 which was famous for its 0.5% income tax policy,
which was final.
CV ABC is a company engaged in the trade, maintenance, and charging of fire
extinguishers (APAR). CV ABC is a company included in the MSME sector. Government
Regulation No. 23 of 2018 gives MSME taxpayers the choice of whether to use a taxation
scheme of 0.5% of the gross circulation of which the tax is final or based on operating income
that is subject to general income tax rates. CV ABC has also been confirmed as a Taxable
Entrepreneur (PKP) so he must collect Value Added Tax (PPN) and deposit it to the state
treasury for the supply of Taxable Goods (BKP) and/or Taxable Services (JKP) carried out by
his business. Based on the above background, the purpose of this paper is to find out the
Income Tax (PPh) and Value Added Tax (PPN) planning, as well as the amount of tax
savings in CV ABC for the fiscal year 2018.

2. THEORY
2.1. Taxation
Prof. Dr. PJA Adriani in R. Santoso Brotodiharjo (2013) defines taxes as dues to countries
that can be imposed based on regulations, do not get achievements and can directly be
appointed to finance public expenditure. Prof. Dr. Rachmat Soemitro, SH (2007) defines tax
as people's contribution to the state treasury (the transfer of cash to the government sector
based on the law) can be forced by not receiving lead services (achievement achievements)
which can directly be shown and used to finance public expenditure. Thuronyi (2003)
explains that in economic terms, any imposition of costs on individuals or companies by the
government can be considered as taxes. On the other hand, not all payments required to the
government are tax. Taxes cannot include civil or criminal penalties. Furthermore, taxes
should not include payments to governments that taxpayers receive something in return.

2.2. Tax Collection Theory

Smith (2007) with the theory known as "The Four Maxims", divides the principle of tax
collection into four parts, namely the principle of equality, certainty, the convenience of
payment and efficiency. As forces equality, i.e. tax collection must be fair, adjusting between
ability and income of tax subjects, without discrimination. the principle Certainty is that tax
collection must be based on the law and not allow any deviation. The principle of conviction

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 Suparna Wijaya

of payment is tax collection when tax subjects are in a happy condition, for example when
they receive an income. While the principle of efficiency, namely the costs incurred by the
government to collect taxes must be as efficient as possible so that tax revenue must be higher
than the cost of collecting the tax.

2.3. Value Added Tax

Sukardji (2015) thinks that Value Added Tax is the imposition of a tax on expenditures for
consumption by individuals and entities both private and government agencies in the form of
goods or services expenditure charged to the state budget.

2.4. Income Tax

Income tax in Wijaya and Mahatma (2017) is a tax that is levied on tax subjects on income
received or obtained in the fiscal year.

2.5. Tax Planning

Based on Larking's opinion as quoted by Slamet (2007) states that tax planning can be likened
to tax mitigation, which is an effort made by taxpayers to minimize tax payments. While
Darussalam (2017) argues that tax planning is an effort of tax subjects to minimize tax
payable through a scheme that is regulated in tax laws and does not cause disputes between
tax subjects and tax authorities. Whereas James et al. (1978) explain that tax planning is
"arranging one's affairs to take advantage of the obvious and often intended effects of tax
rules to maximize one's after-tax returns".
Tax planning can also be interpreted as the process of organizing the business of a
taxpayer or a group of taxpayers in such a way that his tax debt, whether income tax or other
taxes, is in the minimum position, as long as this is made possible by the provisions of tax
laws (Zain, 2007). Sophar Lumbantoruan as quoted by Suandy (2008) argues that tax
management is a means of fulfilling tax obligations correctly but the amount of tax paid can
be reduced as low as possible to maximize profits and liquidity.

2.6. Earnings Management

Scott (2009) in Wijaya (2017) argues that earnings management is a selection of accounting
policies to optimize the capital market with the aim of bonus schemes, debt covenants,
political motivation, and taxation motivation.

2.7. Micro, Small and Medium Enterprises (MSMEs) The

Definition of Micro, Small and Medium Enterprises (MSMEs) varies in each country, smaller
countries generally set lower limits compared to larger countries (OECD, 2019, 36 ). For
example, according to the European Commission in the Commission Recommendation of 6
May 2003 concerning the definition of micro, small and medium-sized enterprises, small and
medium-sized enterprises (SMEs) are entrepreneurs who employ less than 250 employees and
have an annual turnover not exceeding EUR 50 million and/or total annual balance sheet does
not exceed EUR 43 million, with details of the micro-business category for entrepreneurs who
employ less than 10 employees and have an annual turnover not exceeding EUR 2 million
and/or total annual balance sheet does not exceed EUR 2 million, as well as the small
business category for entrepreneurs who employ less than 50 employees and have an annual
turnover not exceeding EUR 10 million and/or total annual balance sheet not exceeding EUR
10 million, and the rest are medium business categories.

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 Tax Planning in Micro, Small and Medium Enterprises in Indonesia

3. RESEARCH METHOD
Morse in Creswell (2014) states that this type of qualitative approach is needed because the
research topic is new, the subject has never been stated with a particular sample or group of
people, and the existing theory does not apply to certain samples or groups under study. Also,
a qualitative approach is carried out because of the need to explore and explain phenomena in-
depth, where the nature of the phenomena does not correspond to quantitative measures.
The resource persons used in this study besides CV ABC management, employees of the
Directorate General of Taxes, also Mr. NN who is an academic and tax practitioner from edu-
coretax who has more than 15 years of experience in the taxation world.

4. ANALYSIS AND DISCUSSION

4.1. of Income Tax Planning and Implementation
CV ABC is a business entity engaged in the trade-in fire extinguishers, replacement of fire
extinguishers and refilling of fire extinguishers. The company uses an income tax calculation
scheme based on Government Regulation Number 46 of 2013 concerning Income Taxes on
Income from Businesses Received or Obtained by Taxpayers who have a Specific Gross
Distribution.
Based on Government Regulation No. 46 of 2013, taxpayers who meet the requirements
only pay an income tax of 1% of the gross circulation of their business activities and are final.
The requirements that must be met based on Government Regulation Number 46 of 2013 for
corporate taxpayers are:
Not a permanent establishment;
Already operating commercially for a period of 1 (one) year; and
The gross circulation of business activities in the previous fiscal year does not exceed
IDR4,800,000,000.
Based on the Income Statement, Annual Notification Letter (Annual SPT), and Deed of
Establishment, it is known that the company is not a permanent establishment and was
established in 2005. However, it was commercially operational in January 2006. Thus, in the
2018 fiscal year, the company had carried out operational activities for more than 1 (one)
year.
Based on data from the Income Statement and Annual Income Statement (Annual Tax
Return) of CV ABC in the 2017 fiscal year, it is known that the gross circulation of taxpayers
amounts to IDR1,051,834,190. So that the gross circulation of the previous fiscal year (2018)
has not exceeded IDR4,800,000,000.
Based on the above circumstances, the 2018 fiscal year CV ABC is required to use
Government Regulation Number 46 of 2013. However, in 2018, Government Regulation
Number 46 of 2013 does not apply throughout the year, but only for income received or
obtained from January 2018 until June 2018. Starting July 2018, the provisions of
Government Regulation Number 23 the Year 2018 concerning Income Tax on Income from
Businesses Received or Obtained by Taxpayers with Certain Gross Circulation shall apply.
In accordance with Government Regulation No. 23 of 2018, then the taxpayer who meets
the requirements only pays an income tax of 0.5% of gross income on their business activities
and is final. The provisions stipulated in Government Regulation Number 23 of 2018 and the
implementing regulations for corporate taxpayers are:
 Gross circulation of business activities for the previous fiscal year does not exceed
IDR4,800,000,000;

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 Suparna Wijaya

 Taxpayers do not choose to be subject to income tax based on the general provisions
of income tax;
 Not a corporate taxpayer in the form of limited partnership or firm formed by several
individual taxpayers who have special expertise to deliver similar services with
services in connection with free employment;
 Not a corporate taxpayer currently obtaining income tax facilities based on Article
31A of the Income Tax Act or Government Regulation Number 94 of 2010; and
 Not a taxpayer in the form of a permanent establishment.
Based on interviews with management, it is known that CV ABC is not a taxpayer who
has business services related to free work. CV ABC also in 2018 is not currently obtaining
facilities Article 31A of the Income Tax Act or Government Regulation Number 94 of 2010.
Based on research, it is known that taxpayers do not make and submit to the registered tax
service office a statement not to want the provisions of Government Regulation Number 23 of
2018 Thus, CV ABC for the tax period July 2018 to December 2018 chooses to use
Government Regulation Number 23 of 2018.
Based on document research and interviews, it is known that the implementation of the
provisions of Government Regulation Number 46 of 2013 is carried out by CV ABC by
requesting a Certificate Free for taxpayers who meet Government Regulation Number 46 of
2013. At the time of collection, this Free Certificate is attached so that taxpayers do not
deduct Income Tax Article 23. Then the taxpayer deposits the Final Income Tax as referred to
Government Regulation Number 46 Know n 2013 of 1% (one percent) of the tax base.
While the implementation of the provisions of Government Regulation Number 23 of
2018 is somewhat different, in which CV ABC applies for a Certificate for taxpayers who
meet the facility. Then the Certificate will be attached at the time of billing. Then the
employer (opposite the transaction) will deduct the Final Income Tax by 0.5% (zero point five
percent) from the tax base. Then the counterparty provides the Proof of Withholding the Final
Income Tax.
The recapitulation of business circulation and deductions and self-paid taxes for the
January to December 2018 tax period are as follows: for January to December 2018

Table 1 Final Income Tax Period

Month Sales (IDR) Final Income Tax (IDR) Tax Rate (%)
January 86.601.750 866.018 1
February 73.020.750 730.208 1
March 81.363.000 813.630 1
April 74.186.250 741.863 1
May 121.440.000 1.214.400 1
June 19.153.500 191.535 1
July 167.104.000 835.520 0,5
August 188.377.000 941.885 0,5
September 110.334.000 551.670 0,5
October 134.230.500 671.153 0,5
November 146.167.500 730.838 0,5
December 199.245.250 996.226 0,5
Total 1.401.223.500 9.284.944
Source: data processed from the Financial Statements and SPT CV ABC

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 Tax Planning in Micro, Small and Medium Enterprises in Indonesia

Based on interviews with Mr. NN, academics and practitioners from edu-coretax, it is
known that PP 23 of 2018 is a facility. So that if the taxpayer feels disadvantaged with this
provision, it can be desired to use a general rate (Article 31E or Article 17 of the Income Tax
Act) by submitting written notice to the registered tax service office no later than the end of
the fiscal year for the next fiscal year. For example, the taxpayer does not want to use PP 23
of 2018 for the 2019 fiscal year, so he must submit the notification no later than December 31,
2018. Especially for the 2018 fiscal year especially from July to December 2018, if the
taxpayer does not want to use PP 23 of 2018 then you must submit the notification no later
than 31 December 2018. This is as stated in the Minister of Finance Regulation No. 99 /
PMK.03 / 2018. But this PP 23/208 facility for CV-shaped business entities can only be used
for 4 fiscal years since 2018 or the year of the establishment if it is more than 2018.

4.2. Value Added Tax Planning and Implementation

CV ABC is a business entity engaged in the trade-in fire extinguishers, replacement of fire
extinguisher parts, maintenance, and refilling of fire extinguishers. Under Article 4A of the
1984 VAT Act, fire extinguishers, spare parts, maintenance and refilling of APAR are not
included in goods exempt from the imposition of VAT. Thus, fire extinguishers and their
spare parts are taxable goods. While the maintenance and refill services of fire extinguishers
are taxable services.
CV ABC is based on the circulation of its business since its establishment up to now
including the category of small entrepreneurs because the amount of delivery of taxable goods
and / or taxable services in one book year does not exceed IDR4,800,000,000. However, even
though CV ABC, small entrepreneurs choose taxable entrepreneurs. Thus, all taxation rights
and obligations related to Value Added Tax have to be carried out since its status was
confirmed as a taxable entrepreneur. Based on an interview with the owner, it is known that
the company chose to become a taxable entrepreneur because it transacted with PT PPN who
wanted the transaction opponents to be confirmed as taxable entrepreneurs.
CV ABC in conducting tax planning related to value-added tax using the Minister of
Finance Regulation Number 74 / PMK.03 / 2010 concerning Guidelines for Calculating
Credit Tax Input for Taxable Entrepreneurs Who Have Circulation of Businesses Do Not
Exceed a Specific Amount. For taxable entrepreneurs who use the provisions of Regulation of
the Minister of Finance Number 74 / PMK.03 / 2010, he will collect 10% VAT on the
delivery of taxable goods and / or taxable services. Then the taxable businessman will deposit
VAT to the state treasury of 3% for the supply of taxable goods and 4% for the supply of
taxable services. Thus, companies save 7% for the supply of taxable goods and 6% for the
supply of taxable services.
To fulfill the provisions of the Minister of Finance Regulation No. 74 / PMK.03 / 2010,
taxable entrepreneurs must fulfill the requirement that in the previous two financial years the
number of surrenders does not exceed IDR1,800,000,000. Based on data from the ABC
Income Statement and Annual Income Letter (SPT) of CV ABC in the 2016 and 2017 fiscal
years, it is known that the gross circulation of taxpayers amounts to IDR980,408,200 and
IDR1,051,834,190. Thus, CV ABC is permitted to choose to use the provisions of Regulation
of the Minister of Finance Number 74 / PMK.03 / 2010.
Based on the recapitulation of tax invoices, Period Notification Letter (SPT Masa), and
Tax Payment Letter (SSP), it is known that the amount of submission and VAT deposited to
the state treasury is as follows:

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 Suparna Wijaya

Table 2 Amount of VAT Payment for January to December 2018 Period

Month Sales (IDR) VAT Out (IDR) VAT Payable (IDR)
January 86.601.750 8.660.175 3.464.070
February 73.020.750 7.302.075 2.920.830
March 81.363.000 8.136.300 3.254.520
April 74.186.250 7.418.625 2.967.450
May 121.440.000 12.144.000 4.857.600
June 19.153.500 1.915.350 766.140
July 167.104.000 16.710.400 6.684.160
August 188.377.000 18.837.700 7.535.080
September 110.334.000 11.033.400 4.413.360
October 134.230.500 13.423.050 5.369.220
November 146.167.500 14.616.750 5.846.700
December 199.245.250 19.924.525 7.969.810
Total 1.401.223.500 140.122.350 56.048.940
Source: Financial Statements and SPT CV ABC
Based on these data, CV ABC deposits VAT to the state treasury of 4%, even though not
all submissions are taxable services. Based on interviews with the owner, it is known that this
matter has been consulted with an account representative at the tax service office where he is
registered because bills are made in one invoice and one tax invoice. So the tax authorities
assume that the delivery made is taxable services.
Based on interviews with Mr. NN, academics and practitioners from edu-coretax, it is
known that the input tax credit guidelines regulated in PMK Number 74 / PMK.03 / 2010 are
facilities that can be used or not and provided to small entrepreneurs to be interested in
becoming PKP. So that this facility is only used for new taxpayers or taxpayers who in the
previous 2 (two) fiscal years in a row, the business circulation does not exceed
IDR1,800,000,000.
With the input tax credit guideline facility regulated in PMK Number 74 / PMK.03 / 2010,
PKP is permitted to collect 10% and deposit to the state treasury only 4% for the submission
of JKP and 3% for submission of BKP. The VAT tax return submitted by the taxpayer is also
different, not the 1111 VAT tax return, but the 1111DM VAT tax return. and for PKP who
use this facility, they must submit a notification no later than the end of the month following
the first fiscal year of the fiscal year or usually the end of February together with the January
VAT tax return is reported.

4.3. Savings on Income Tax and Value Added Tax

Based on income tax planning and implementation carried out by CV ABC, a fiscal correction
will be made first if the company uses income tax calculation based on Article 31E of the
Income Tax Act. The fiscal reconciliation that is likely to be carried out by taxpayers in the
2018 fiscal year is as follows:

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 Tax Planning in Micro, Small and Medium Enterprises in Indonesia

Table 3 Calculation of Income Tax at Article 31E of Income Tax Act

CV ABC
Income Statement
Fiscal Year 2018

Commercial Fiscal Correction Fiscal

Sales IDR 1.401.223.500 0 1.401.223.500
COGS 762.514.000 0 762.514.000
Gross Profit IDR 638.709.500 0 638.709.500
Operating Expenses : -
Salaries IDR 156.000.000 0 156.000.000
Households 8.201.000 0 8.201.000
Electricities, Waters, and Telephones 17.928.030 0 17.928.030
Rents 15.000.000 0 15.000.000
Depreciation 17.000.000 (4.250.000) 21.250.000
Fuels 35.924.090 35.924.090
Replacements and Repairs 15.629.900 15.629.900
Supplies 3.750.000 3.750.000
Entertainments 70.000.000 70.000.000 -
Others IDR 8.400.000 3.600.000 4.800.000
Total Operating Expenses IDR 347.833.020 278.483.020
Operating Incomes IDR 290.876.480 360.226.480
Other Income and Expense : -
Other income IDR 2.010.304 -
Other expense IDR - -
IDR 2.010.304 (2.010.304) -
Earnings Before Income Tax (EBIT) IDR 292.886.784 360.226.480
Income Tax 9.284.944 45.028.310
Earnings After Tax (EAT) IDR 283.601.840 315.198.170

Source: data processed from CV ABC Financial Statements

Explanation related to the possibility of correction by taxpayers is a fiscal correction
negative amounting to IDR4,250,000, - due to differences in depreciation between accounting
standards (PSAK) in the accounting of taxpayers with the tax provisions stipulated in Article
11 of the Income Tax Act. The positive fiscal correction for entertainment expenses amounted
to IDR70,000,000 due to the absence of a nominative list that must be made by the taxpayer.
While the negative fiscal correction of IDR2,010,304, - represents bank interest income that
was corrected because the income was already subject to final income tax. Therefore, taxable
income if the taxpayer uses income tax calculation by Article 31E of the Income Tax Act is
IDR360,226,480.
The comparison of income tax on the use of Government Regulation Number 23 the Year
2018 with if the taxpayer uses the general income tax rate in this condition Article 31E of the
Income Tax Act is as follows:

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 Suparna Wijaya

Table 4 Comparison of Income Tax

PP 23 of 2018 with Article 31E of the Income Tax Act of the 2018 Fiscal year Period
Description Amount (IDR)
Income Tax from calculation with PP 23 of 2018 9.284.944
Income Tax from calculation with Article 31E of Income Tax Act 45.028.310
Savings 35.743.366
Source: data processed from the Financial Statements and Annual Tax Returns of CV ABC
The amount of income tax when using Article 31E of the Income Tax Act is
IDR45,028,310. Whereas taxpayers in the 2018 fiscal year chose to use PP 23 of 2018 which
was only subject to final income tax of IDR9,284,944. Thus the income tax planning that has
been carried out by the taxpayer can save tax in the amount of IDR35,743,366, -.
However, this facility of Government Regulation Number 23 the Year 2018 cannot always
be used by CV ABC. For business entities in the form of a limited partnership, this facility
can be used for a maximum of 4 (four) fiscal years as long as the circulation of the previous
fiscal year business does not exceed IDR4,800,000,000. However, if the 2019 fiscal year the
total circulation of the business exceeds IDR4,800,000,000, then the next fiscal year or the
2020 fiscal year cannot use this Government Regulation Number 23 of 2018.
While the value-added tax planning carried out by CV ABC by the discussion related to
value-added tax planning and its implementation, taxpayers choose to become taxable
entrepreneurs even though based on the amount of business circulation it is still classified as
small entrepreneurs. Value-added tax planning is carried out using a guideline scheme for
calculating input tax credit for taxable entrepreneurs whose business circulation does not
exceed a certain amount by PMK Number 74 / PMK.03 / 2010.
Value-added tax calculation if the taxable entrepreneur uses a general mechanism for the
amount deposited into the state treasury, namely by subtracting the output VAT already
collected with the input VAT obtained on the purchase of goods and/or services. The
comparison between general mechanisms and guidelines for crediting the PMK input tax
number 74 / PMK.03 / 2010 carried out by CV ABC is as follows:

Table 5 VAT Savings from January to December 2018 Period

Month Sales (IDR) VAT Normal Mechanism (IDR) VAT PMK 74/2010 (IDR)
January 86.601.750 8.660.175 3.464.070
February 73.020.750 7.302.075 2.920.830
March 81.363.000 8.136.300 3.254.520
April 74.186.250 7.418.625 2.967.450
May 121.440.000 12.144.000 4.857.600
June 19.153.500 1.915.350 766.140
July 167.104.000 16.710.400 6.684.160
August 188.377.000 18.837.700 7.535.080
September 110.334.000 11.033.400 4.413.360
October 134.230.500 13.423.050 5.369.220
November 146.167.500 14.616.750 5.846.700
December 199.245.250 19.924.525 7.969.810
Total 1.401.223.500 140.122.350 56.048.940
Total Savings 84.073.410
Source: data processed

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 Tax Planning in Micro, Small and Medium Enterprises in Indonesia

If CV ABC uses a normal mechanism, then he will deposit it to the state treasury in the
amount of IDR140,122,350, - this is because based on interviews with the company it is
known that there is no input VAT. Because taxpayers buy chemicals, spare parts, and new
tubes not from entrepreneurs who have been confirmed as PKP. Whereas CV ABC uses the
input tax crediting guidelines according to PMK Number 74 / PMK.03 / 2010. Thus, for this
value-added tax plan, taxpayers have succeeded in making savings of IDR84,073,410, -.
However, if when CV ABC uses a normal mechanism and purchases of raw materials and
new tubes come from the PKP as well, the input tax can be calculated. So there is the
possibility illustrative calculation is as follows:

Table 6 Illustrative Calculation Normal Mechanism

If the Purchase of Raw Materials of PKP
Description Amount (IDR)
VAT Output 140.122.350
VAT Input if the purchase of raw materials from a taxable entrepreneur 76.251.400
Savings 63.870.950
Source: data processed
Based on the illustration when using a normal mechanism and the purchase of raw
materials or supplies coming from PKP also the calculation of which will be deposited into
the state treasury to IDR63.87095 million. This amount if compared with taxpayers using the
calculation guidelines for crediting the input tax of IDR56,048,940, is not too different and
only disputes at IDR7,822,010.

5. CONCLUSIONS AND RECOMMENDATIONS

5.1. Conclusions
Based on the analysis and results of the discussions that have been carried out, it can be
concluded that:
 For taxpayers engaged in the MSME sector can do income tax planning by utilizing
the provisions of Government Regulation Number 46 of 2013 as replaced by
Government Regulation Number 23 of 2018. CV ABC as a taxpayer who meets the
criteria as required in Government Regulation Number 46 of 2013 as has been
replaced with Government Regulation Number 23 of 2018 has successfully carried out
tax planning in 2018 so that it only pays income tax of IDR9,284,944. Government
Regulation Number 23 the Year 2018 cannot always be used. For taxpayers in the
form of a limited partnership, the maximum use of this facility is for 4 (four) fiscal
years as long as the business circulation does not exceed IDR4,800,000,000.
 Taxpayers engaged in the MSME sector can plan value-added tax by utilizing the
provisions of the Minister of Finance Regulation Number 74 / PMK.03 / 2010. CV
ABC as a taxable businessman who fulfills the criteria as required in Minister of
Finance Regulation Number 74 / PMK.03 / 2010 has succeeded in carrying out tax
planning during the January to December 2018 tax period so that he only pays value-
added tax of IDR56,048,940. Tax planning using the Minister of Finance Regulation
Number 74 / PMK.03 / 2010 cannot always be done. If the business circulation of
taxpayers exceeds IDR1,800,000,000, then in the next tax period no longer allowed to
use this facility and must move to the general mechanism of value-added tax.
 The income tax savings made by taxpayers using Government Regulation Number 23
of 2018 are IDR35,743,366, -.

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 Suparna Wijaya

 While the VAT savings made by taxpayers using the Minister of Finance Regulation
Number 74 / PMK.03 / 2010 are IDR84,073,410.

5.2. Suggestions
For the Directorate General of Taxes
Suggestions given to the Directorate General of Taxes related to MSMEs for income tax
already reflects simplicity and as an effort to support the booming MSME sector as economic
support. However, for value-added tax, there are still different restrictions, which do not
exceed IDR1,800,000,000. The limitation should be made equal to IDR4,800,000,000.

For CV ABC
CV ABC in terms of income tax in using the provisions of Government Regulation Number
23 the Year 2018 it should be noted that the facility can only be used for 4 (four) fiscal years
or CV ABC it will expire in 2021 as long as each year the gross circulation does not exceed
Rp. 4,800,000,000. Whereas related to value-added tax it is recommended that CV ABC
separate the value and invoice between the supply of taxable goods and the delivery of taxable
services because it will save more on VAT paid to the state treasury. CV ABC if using a
general mechanism the VAT should purchase raw materials or finished goods for supplies
originating from PKP.

For Future Researchers Further

Research can examine the MSME sector's income tax planning with other types of business
and the 2019 fiscal year in which Government Regulation No. 23 of 2018 has been in effect
throughout the year. While related to the value-added tax, researchers can then examine
taxable entrepreneurs who use the Minister of Finance Regulation No. 79 / PMK.03 / 2010 for
the delivery of used motor vehicles in retail.

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