<![CDATA[Micro, small, and medium enterprises (UMKM) constitute a significant component of Indonesia's economy and provide livelihoods for millions of individuals. Simplified final income tax regimes have been introduced to reduce administrative burdens and improve voluntary compliance among small businesses. However, the application of turnover-based taxation may produce different effects depending on profit margins, business sectors, and economic conditions. This article examines the fairness of Indonesia's final income tax regime for UMKM. Using normative juridical research and tax policy analysis, the study evaluates the relationship between tax simplicity, ability-to-pay principles, administrative costs, and distributive justice. The article argues that a uniform turnover-based approach may disproportionately burden businesses operating with low profit margins while potentially providing advantages to businesses with higher margins. The study proposes a more differentiated tax justice framework incorporating taxpayer capacity, sectoral characteristics, simplified record-keeping, and targeted relief for vulnerable micro-enterprises. Tax administration should also provide accessible assistance rather than relying primarily on enforcement mechanisms. The article concludes that effective UMKM taxation requires a balance between simplicity and equity. A justice-oriented tax regime should facilitate formalization and compliance without imposing disproportionate fiscal burdens on entrepreneurs with limited economic capacity.]]>
