GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA

NUMBER 23 OF 2018

REGARDING

Income Tax for on Operating Revenue Received or Obtained

by Taxpayers with Certain Gross Income

Article 2

(1) Operating revenue received or obtained by a resident Taxpayer with certain gross income is
subject to final Income Tax in for a certain period. of time.

(2) The final Income Tax Rate, as referred to in paragraph (1), is at the a rate of 0.5% (zero point five
percent).

(3) Not includingThe exclusions of the operating revenue that is subject to final Income Tax,
as referred to in paragraph (1), are as follows:

a. income received or obtained by an individual Taxpayer of from services in respect

ofrelated to freelance jobs;
b. income received or obtained overseas whose with taxes are payable or paid overseas;
c. income which has have been subjected to final Income Tax with the provisions of
separate taxation laws; and
d. income that is are excluded as tax objects.

(4) Services in respect ofrelated to freelance jobs, as referred to in paragraph (3) letter a, include:

a. Specialty workforce who perform freelance jobs, which consisting of lawyers, accountants,
architects, doctors, consultants, notaries, PPAT (land deal officials), appraisers, and
actuaries;
b. musicians, hosts, singers, comedians, moviefilm stars, sinetron television program stars,
advertisement stars, directors, film crews, photo models, male model / female models,
drama playercast, and dancers;
c. athletes;
d. counselors, instructors, trainers, preachers, extensionistscoaches, and moderators;
e. authors, researchers, and translators;
f. advertising agenciesy;
g. supervisors atau or project managers;
h. intermediaries;
i. trade merchants;
j. insurance agents;
k. distributor of multi-level marketing companies or direct sales and other similar activities

Article 3
(1) Any Taxpayers with certain Gross Income who are subject to final Income Tax, as
referred to in Article 2 paragraph (1), shall be:

a. IAn individual Taxpayers; and

b. CA corporate Taxpayers in the form of cooperatives, limited partnerships, a firm or a limited
liability company, which receives or obtains income with Gross Income that does not exceeding
IDR 4,.800,.000,.000.,00 (four billion and eight hundred million rupiah) in 1 (one) tax Fiscal
Yyear.

(2) Excluding tTaxpayers, as referred to in paragraph (1), shall not include the followingin cases such as:

a. The Taxpayer chooses to be subject to Income Tax according to Article 17 paragraph (1)
letter a, Article 17 paragraph (2a), or Article 31E of the Income Tax Law;
b. The corporate taxpayer in the form of limited partnership or firm established by several
individual Taxpayers with special expertise to in hand oversubmitting similar services with to
services regarding related to freelance jobs, as referred to in Article 2 paragraph (4);
c. The corporate Taxpayers obtains an Income Tax facility based on:

1. Article 31A of the Income Tax Law; or

 2. Government Regulation Number No. 94 of 2010 regarding the Calculation of Taxable
Income and Settlement of Income Tax forin the Current Year and its aamendment or
replacement; and

d. Taxpayer in the form of a Permanent Establishment.

(3) The Taxpayer, as referred to in paragraph (2) letter a, shall be obligated to submit a notification
to the Director General of Taxes
(4) The Taxpayer, as referred to in paragraph (3), shall not be subject to Income Tax according to this
Government Regulation for the next following tax Fiscal Yyears.
(5) Further provisions regarding the procedures of notification, as referred to in paragraph (3), shall be
regulated by Regulations of the Minister of Finance.

Article 4
(1) The amount of certain Gross Income, as referred to in Article 3 paragraph (1), represents the amount
of Gross Income in 1 (one) year of the last FiscalTax Year prior to the Tax Fiscal Year concerned,
which is determined based on the total Gross Income of the business, including Gross Income of the
branch.
(2) In terms of husband-and-wife individual Taxpayers as a husband and wife who:
a. Intend require a written property and income separation agreement; or
b. The wife intends to choose to undertake her own taxation rights and obligations , as referred to
in Article 8 paragraph (2) letters b and c of the Income Tax Law, the amount of Gross Income
as referred to in paragraph (1), shall be determined based on the merger of the business
operating Gross Income from the husband and wife.

Article 5
(1) The certain period for the final Income Tax, as referred to in Article 2 paragraph (1), shall be the
longestat most:
a. 7 (seven) Tax Fiscal Years for individual Taxpayers;
b. 4 (four) Tax Fiscal Years for corporate Taxpayers in the form of cooperatives, limited
partnerships, or firms; and
c. 3 (three) Tax Fiscal Years for corporate Taxpayers in the form of limited liability
compancompaniesy.
(2) The period, as referred to in paragraph (1), shall be effective as from of:
a. Tay The Fiscal Yyear of registeredupon the Taxpayer’s registration, for the Taxpayers
registered since following the validity enforcement of this Government Regulation, or
b. The FTiscalax Year of the validity enforcement of this Government Regulation, for the
Taxpayers that who have beenwere registered prior to the validity enforcement of this
Government Regulation.

Article 6
(1) The amount of the monthly Gross Income of income from businessfrom operating income, as
referred to in Article 2 paragraph (1), serves as the tax base used in the calculation of final Income
Tax.each month is the tax base used to calculate the final Income Tax.
(2) The Gross Income, as referred to in paragraph (1), shall be the compensation or replacement value
in the form of money or monetary value received or obtained from the business, prior before the
deduction ofto deducted sales discounts, cash discounts, and / or similar discounts.
(3) Income Tax Liability payable shall be calculated based on the rate, as referred to in Article 2
paragraph (2), multiplied by the tax base, as referred to in paragraph (1).

Article 7
(1) The taxpayer, as referred to in Article 3 paragraph (1), whose Gross Income in the current Tax
Fiscal Year has exceeded IDR 4,800,000,000 (four billion eight hundred million rupiah), on from the
income from of fixed businesspermanent establishments is subject to the Income Tax rate
referred to in Article 2 paragraph (2) up to theuntil the end of the Tax Fiscal Year concerned.
(2) The income from businessbusinesses, as referred to in Article 2 paragraph (1), which is received or
obtained in the next following Tax Fiscal Years, as referred to in paragraph (1), shall be subject to
Income Tax according to Article 17 paragraph (1) letter a , Article 17 paragraph (2a), or
Article 31E of the Income Tax Law.
Article 8

(1) Income Tax Liability payables, as referred to in Article 6 paragraph (3), shall be paid bysettled
through:

a. personal paid deposits by Taxpayers with certain Gross Income; or

b. withheld withholding or collectioned by the Tax withholder or collector in terms cases in whichof
the Taxpayer concerned has undertakes undertaken a transaction with the party appointed as
a Tax withholder or collector

(2) The deposit of Income Tax liability payable, as referred to in paragraph (1) letter a, shall be carried
outconducted monthly.
(3) The withholding or collection of Income Tax liability payable, as referred to in paragraph (1) letter
b, shall be carried outconducted by the Tax Withholder or Collector for each transaction; with a
Taxpayer that who is subject to final Income Tax according to this Government Regulation.

(4) Further provisions regarding the deposit procedures, as referred to in paragraph (2), and the
procedure of tax withholding or collection, as referred to in paragraph (3), shall be regulated by
the Regulations of the Minister of Finance.

Article 9
(1) In cases in whichterms of a Taxpayer that is subject to Income Tax, according tobased on this
Government Regulation, has conducted a transacting transaction with the Tax Withholder or
Collector, as referred to in Article 8 paragraph (1) letter b, the Taxp Payer must file an identification
statement letter request to the Director General of Taxes.
(2) Director General of Taxes shall issue an identification statement letter that the Taxpayer concerned
shall be subject to Income Tax according tobased this Government Regulation, based onin
accordance with the Taxpayer's request as referred to in paragraph (1).
(3) Further provisions regarding on the procedures for of filing a request and the issuance of the
statementidentification letter, as referred to in paragraph (1) and paragraph (2), shall be regulated
by Regulations of the Minister of Finance.

Article 10
At the time thisUpon the validity of this Government Regulation is effective, for for the Taxpayers from
thesince beginning of the Tax Fiscal Year of 2018 up to the validity beforeof this Government Regulation,
who is valid, is are eligible required to undertake comply with the tax obligations according based onto
Government Regulation Number No. 46 of 2013 regarding Income Tax on from Income from Business
Operating Income Received or Obtained by Taxpayers with Certain Gross Income, but is notdid not eligible
fulfill for the provisions of thefor Taxpayers that is subject to final Income Tax according based on this
Government Regulation, the following provisions apply:

1. for income of thefrom businesses, as referred to in Article 2 paragraph (1), that which areis received
or obtained from the beginning of the Tax Year up to beforeup until the validity this Government
Regulation is effective, is are subject to Income Tax at the a rate of 1% (one percent) of the monthly
Gross Income per month;
2. for iIncome of thefrom businesses, as referred to in Article 2 paragraph (1), that which is are
received or obtained since this the validity of this Government Regulation is valid until the end of
Fiscal Year 2018, is are subject to Income Tax at the a rate of 0.5% (zero point five percent) of
monthly Gross Income every month; and
3. for iIncome of thefrom businesses, as referred to in Article 2 paragraph (1), that which areis
received or obtained from the Tax Fiscal Year of 2019, is are subject to Income Tax according to
Article 17 paragraph (1) a, Article 17 paragraph (2a) or Article 31E of the Income Tax Law.

Article 11
Pada saat Peraturan Pemerintah ini mulai berlaku, Peraturan Pemerintah Nomor 46 Tahun 2013 tentang
Pajak Penghasilan atas Penghasilan dari Usaha yang Diterima atau Diperoleh Wajib Pajak yang Memiliki
Peredaran Bruto Tertentu (Lembaran Negara Republik Indonesia Tahun 2013 Nomor 106, Tambahan
Lembaran Negara Republik Indonesia Nomor 5424), dicabut dan dinyatakan tidak berlaku.

At the timeUpon the validity of this Government Regulation is effective, the Government Regulation
Number No. 46 of 2013 regarding Income Tax on Income from BusinessOperating Income Received or
Obtained by Taxpayers with Certain Gross Income (State State Gazette of the Republic of Indonesia No.
106 of 2013, Supplementary State Gazette of the Republic of Indonesia No. 5424) , is revoked and
declared to be invalid.

Pasal 12
This Government Regulation shall be effective put into force on 1 July 1, 2018.