Evaluation of the Implementation of Gross Limitation Policy for Individual Taxpayers of Micro, Small, and Medium Enterprises

Abstract

This study aims to evaluate the policy of final income tax exemption for
individual SME taxpayers with a turnover of up to Rp 500 million, in
accordance with the Tax Harmonization Law. The evaluation assesses the
policy from the perspective of individual SME taxpayers based on The
Four Maxims: equality, certainty, convenience, and economy of collection.
The research employs a descriptive qualitative case study evaluation
method, focusing on one of the echelon III units in the Directorate General
of Taxes (DGT), KPP Pratama Jakarta Setiabudi One. The research
methodology uses triangulation, utilizing primary data collection,
literature review, and secondary data. Primary data collection involves
distributing questionnaires and conducting interviews with individual
SME taxpayers and government representatives, including the Fiscal
Policy Agency (BKF) and DGT. The research results indicate that the gross
turnover threshold policy meets the principles of fairness and economic
benefits. Furthermore, the study shows that there are still individual SME
taxpayers who do not report their actual turnover in their annual tax
returns. Active involvement from DGT through canvassing methods is
needed to improve formal compliance among individual SME taxpayers.