ANALYSIS OF THE IMPLEMENTATION OF TAX REGULATION PP 23 OF 2018FOR MSMEs (A CASE STUDY OF DIGITAL MARKETING COMPANIES IN JAKARTA)

Abstract

This study aims to analyze the implementation of Government Regulation No. 23 of 2018, which regulates income tax on business income received or earned by taxpayers with certain gross turnover.  The main focus of this study is the Micro, Small, and Medium Enterprise (MSME) sector engaged in digital marketing in Jakarta. Using a case study approach, this study evaluates taxpayers’ understanding, compliance, and the impact of the tax policy on tax burdens and business continuity. Data were collected through interviews, observations, and documentation from several MSME-scale digital marketing companies in Jakarta. The results show that although PP 23 of 2018 offers administrative convenience and a lower tax rate, obstacles remain in its implementation, particularly taxpayers’ limited understanding of tax provisions and difficulties in accurately recording transactions. Therefore, improved tax education and technical support from the government are needed so that the policy can operate more effectively and support MSME growth in the digital era.