Purbalingga Tax Office: BUMDes Duties Differ from Village Govts

On 10 November 2025, tax educator Imet Nur Kharisma of the Purbalingga Tax Office delivered a capacity‑building session to 16 BUMDes managers in Kejobong sub‑district, Central Java. The workshop was organized by the Inter‑Village Cooperation Agency (BKAD) Kejobong.

Imet clarified that BUMDes are not subject to the same tax rules as village administrations, which must withhold and remit Income Tax (PPh) Article 22 and Value‑Added Tax (VAT) on procurement. Instead, BUMDes are treated as corporate taxpayers, so they do not have to deduct or collect PPh or VAT like government entities.

BUMDes with annual turnover below IDR 4.8 billion are eligible for a final corporate income‑tax rate of 0.5 % for the first four years after obtaining a Taxpayer Identification Number (NPWP). After that period or if turnover exceeds the threshold, standard corporate rates under the Income Tax Law apply, and BUMDes must activate a Coretax account and maintain separate accounting records.