Covid-19 (Corona Virus Disease) Article - Tax Incentives For Taxpayers Affected By Pandemic Corona Virus Disease 2019 Based On Regulation Of The Minister Of Finance Number 44/PMK.03/2020 Of 2020
Pandemic Corona Virus Disease 2019 (COVID-19) is a national disaster that affects the economic stability and productivity of the community as workers and business people, therefore there is a need for regulatory measures to overcome this. With these facts, the Minister of Finance decided to renew the legal framework governing tax incentives for taxpayers by issuing Minister of Finance Regulation No. 44/PMK.03/2020 of 2020 concerning Tax Incentives for Taxpayers Affected by Pandemic Corona Virus Disease 2019 (hereinafter referred to as "Permenkeu No. 44/2020").
In Permenkeu No. 44/2020 there are some additions which were not previously regulated in Permenkeu No. 23/2020, which includes the sector and new parties that can be given tax incentives, Final Income Tax (PPh) according to Government Regulation No. 23 of 2018 concerning Income Tax on Business Income Received or Obtained by Taxpayers who have a Specific Gross Distribution (hereinafter referred to as "PP 23/2018"), and the introduction of a new online system.
For new sectors that can be given tax incentives related to Article 21 Income Tax, Article 22, Article 25, and Value Added Tax (VAT), among others, are:
- Agriculture, forestry and fisheries;
- Mining and quarrying;
- Processing industry;
- Procurement of electric gas, hot water steam gas and cold water;
- Wastewater recycling waste management;
- Wholesale retail trade of car and motorcycle repair equipment;
- Transportation and warehousing;
- Provision of accommodation for eating and drinking;
- Information and communication;
- Financial and insurance activities;
- Real Estate;
- Professional scientific and technical services;
- Activities of leasing business warehouses, labor, and travel agents including tourism;
- Human health and social activities;
- Tourism, arts, entertainment and recreation industries; and
- Other service activities and companies in bonded zones.
As for new parties who can be given tax incentives based on Permenkeu No. 44/2020 is:
- Employees/taxpayers who have obtained permission from the bonded zone operator;
- Employees/taxpayers who have obtained a bonded zone entrepreneur permit; and
- Employees/taxpayers who have obtained an entrepreneur's permit in the Bonded Zone and also the Organizer in the Bonded Zone.
Previously in Permenkeu No. 23/2020 regulates PPh incentives for Articles 21, 22 and 25, then in Permenkeu No. 44/2020 introduces new tax incentives namely Final Income Tax. In Chapter III concerning Income Tax Incentives based on PP No. 23/2018 in Article 5 states that the new tax incentive is set at 0.5% of the amount of gross circulation and is borne by the government and the final PPh that is borne by the government is given for the April 2020 tax period to the September 2020 tax period.
In Permenkeu No. 44/2020 also, introduced a new reporting system that is through certain channels on the page www.pajak.go.id, where the forms of reporting or submit that can be done through this online system include:
- Submitting notice to the Head of the Tax Service Office where the employer is registered;
- Submission of a statement in the context of the application for Final PPh;
- Submission of the final PPh realization report;
- Application for issuance of a certificate of collection free of income tax Article 22 Imports;
- Notification about reducing the amount of PPh Article 25 installments; and
- Other documents that must be submitted to the Tax Office.
Permenkeu No. 44/2020 comes into force on the date of its promulgation on April 27th, 2020. With the issuance of Permenkeu No. 44/2020, the Minister of Finance Regulation No. 23/PMK.03/2020 of 2020 concerning Tax Incentives for Taxpayers Affected by Corona Virus Outbreak (hereinafter referred to as "Permenkeu No. 23/2020") has been revoked and replaced so that it is no longer valid.
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