Page 4 - Newsletter (Increased Housing Price Thresholds for VAT Exemptions)

DDTC Newsletter Vol.01 | No.08 I June 2019 Page 4 of 7

Increased Housing Price Thresholds for VAT Exemptions

Approximately 90,000 Corporate The policy of abolishing administrative penalties was
Taxpayers Requested to Re-upload intended to ease the administrative burden of taxpayers
and Tax Payment Banks (Bank Persepsi) considering the
Attachments of their Annual Tax maturity of tax payments taking place during/after the
Returns national holidays and Eid al-Fitr joint leave.
PENG-06/2019 states that the abolition of administrative
The Directorate General of Taxes (DGT) has requested
penalties applies for the late payment of taxes for the
corporate taxpayers that submitted their annual tax
tax period of May 2019 for the withholding of article
returns on 18 April 2019 to 10 May 2019 to re-upload
4 paragraph (2), article 15, article 21, article 23, and
the attachment documents due to unreadability by the
article 26 income tax, and/or the withholding of article
system.
22 income tax conducted by certain corporate taxpayers,
This was conveyed by the DGT’s Director of Dissemination, carried out on 11 June 2019 until 12 June 2019.
Services, and Public Relation through Announcement No.
The abolition of administrative penalties also applies for
PENG-05/PJ.09/2019 concerning the Re-Uploading of
the late payment of the withholding of article 22 income
Attachment Documents for Annual Corporate Income
tax by the Expenditure Treasurer (Bendahara Keuangan)
Tax Returns that Failed to be Received by the E-Filing
due on 1 June 2019 until 10 June 2019 and paid on 11
System. The request was addressed to approximately
June 2019 until 12 June 2019.
90,000 corporate taxpayers.
The documents or attachments being unreadable is Information System Process for the
related to to the development of e-Filing application on
18 April 2019. The DGT has identified annual corporate Tax Administration System Reforms
income tax returns submissions with attachment
documents unreadable by the system. In order to update the administration system in the
context of taxation, the government has issued the
The DGT has also sent e-mails containing a notification to latest regulation related to the procurement or auctions
re-upload the annual tax return attachment documents to for companies wishing to provide information system
the affected corporate taxpayers. The taxpayers receiving services within the Ministry of Finance. This new
such e-mails are to upload the documents immediately regulation was issued on 7 May 2019 and is a follow-up
prior to the deadline stated in the e-mails, i.e. 30 June to the MoF Regulation No.56/PMK.03/2019 concerning
2019. the Procurement of Goods and or Services for the
Despite these technical obstacles, the DGT has confirmed Tax Administration System Reforms (MoF Regulation
that the re-upload of the attachment documents will 56/2019) and Presidential Regulation No. 40 of 2018
not change the date of proof of receipt of the Annual concerning the Renewal of the Tax Administration
Tax Return. For further information related to this System (Presidential Regulation 40/2018).
announcement, please contact Kring Pajak at 1500 200 Based on this regulation, the procurement process
or the nearest Tax Office. of information system for the tax administration
system renewal by the Directorate General of Taxes
Penalties for the Late Submission of (DGT) includes the stages of identifying needs to
May 2019 Periodic Income Tax Return the handover of the results of work. Furthermore, in
the planning process, this regulation states that the
Abolished internal DGT must analyze the needs and formulation
of five other documents. These documents comprise
The DGT has abolished the administrative penalty for technical specifications/work reference framework
taxpayers’ late submission of tax returns for May 2019 (kerangka acuan kerja/KAK), procurement documents,
tax period. This is stated in the Announcement No. procurement general plan documents (rencana umum
PENG-06/PJ.09/2019 concerning the Exemptions for pengadaan/RUP), procurement preparation documents
Administrative Penalties for the Late Submission of May (dokumen persiapan pengadaan/DPP), and provider
2019 Periodic Income Tax Return. selection documents.
The Director General of Taxes issued the Directorate One of the most important points of this regulation is
General of Taxes Decree No. KEP-486/PJ/2019 on 31 the implementation stage, namely the provider selection
May 2019 concerning the tax policies on the submission process. The selection of service providers can be done
of final withholding tax due on 10 June 2019. through two selection methods, namely: