Page 3 - Newsletter (Tax Incentives for Transportation Sector, Sanction for Customs, and Target of Extensification)

DDTC Newsletter Vol.02 | No.01 I July 2019 Page 3 of 6

TAX INCENTIVES FOR TRANSPORTATION SECTOR, SANCTION FOR CUSTOMS,
AND TARGET OF EXTENSIFICATION

As further information, Income Tax Article 25 instalment Overall, it can be understood that MoF Regulation No.
is defined as the average of monthly average of owed 215/2018 has covered the whole provision of Income Tax
income tax based on tax return (Surat Pemberitahuan/ Article 25 instalment calculation, including for individual
SPT) of current tax year credited with Income Tax Article taxpayers who are certain entrepreneurs clearly and in
21, 22 and 23 that are withheld and creditable Income detail. Therefore, the DGT assessed that the implementing
Tax Article 24. Nevertheless, to prevent data irregularity rules in the form of the preceding Directorate General
of the corporate business activities, the government of Taxes Regulation was no longer necessary. Moreover,
exempt several type of taxpayers from the normal PER-14/PJ/2019 can also be perceived to simplify the
regime. The complete provisions regarding the type of provisions and give certainty to the individual taxpayers
financial reports and incomes categorized as net income who are certain entrepreneurs.
are contained in the regulation.

Tabel I - Summary of Calculation Formula of Income Tax Article 25 Instalment for
Taxpayers with Certain Criteria

No. Type of Taxpayer Calculation of Income Tax Article 25 Instalment
New and Existing Taxpayer

1 Bank Taxpayer (Income Tax Article 17 Rate x net income from financial statement)
Deducted by
(Withholding Income Tax Article 22 from the beginning of the Tax Year until the
reported Tax Period + Payable Income Tax Article 25 from the beginning of Tax Year
until before the reported Tax Period).

2 Other taxpayers and Listed Taxpayers (Income Tax Article 17 Rate x net income from financial statement)
Other Than Bank Deducted by
(Withholding Income Tax Article 22 and 23 from the beginning of tax year until
reported Tax Period + Payable Income Tax Article 25 from the beginning of Tax Year
until before the reported Tax Period).

3 State-Owned Enterprises (Badan Usaha (Income Tax Article 17 Rate x Work Plan and Income Budget (Rencana Kerja dan
Milik Negara/BUMN) and Regional- Anggaran Pendapatan/RKAP) Current Year authorized in General Meeting of
Owned Enterprises (Badan Usaha Milik Shareholders (Rapat Umum Pemegang Saham/RUPS))
Daerah/BUMD) Taxpayers Deducted by
((Withholding Income Tax Article 22 and 23 + Income Tax Article 24 that are already
paid or outstanding in the previous tax year): 12).

4 Individual Taxpayers Who Are Certain (0.75% x total monthly gross turnover from each place of business that are different
Entrepreneurs to taxpayer’s residence).

5 Taxpayers in Spin-Off The percentage of transferred assets for each taxpayer resulting from the spin-off.
New Taxpayer

6 Taxpayer in business merging, The amount of Income Tax Article 25 Instalment prior to merger, consolidation, and/
consolidation, and/or business or the business acquisition.
acquisition in the current Tax Year

7 Taxpayer that is altering the business The latest Income Tax Article 25 Instalment before the alteration of the business entity.
entity
8 New taxpayers other than criteria Zero.
number 1 -7
Source: Summarized from MoF Regulation No. 215/2018.