Turnover Over Rp4.8 Billion Requires PKP for Rice Traders
November 9, 2025 • Ben Asmadeus
The Directorate General of Taxes (DJP) clarified through its Kring Pajak contact center on 9 November 2025 in Jakarta. Rice traders with annual turnover above Rp4.8 billion are required to apply for Taxable Entrepreneur (PKP) status.
Under Government Regulation (PP) No 49/2022, rice is classified as a strategic Taxable Goods (BKP) that is exempt from Value‑Added Tax (VAT). However, according to Ministry of Finance Regulation (PMK) No 197/2013, small entrepreneurs are defined as having turnover of Rp4.8 billion or less; exceeding this limit in any month triggers the PKP reporting obligation.
The PKP requirement expands the tax base for a staple commodity while maintaining the VAT exemption on rice. Rice traders should prepare the necessary documentation for PKP registration to avoid penalties.
Source: DDTCNews