Page 4 - Newsletter (New Tax Facilities on Goods and Services Required to Address COVID-19 and Revision on State Budget)

DDTC Newsletter Vol.03 | No.08 I April 2020 Page 4 of 9

New Tax Facilities on Goods and Services Required to Address
COVID-19 and Revision on State Budget

central government budget and transfers to regional and services in the Tax Court. Moreover, the services-related
village funds must first obtain the Minister of Finance’s provisions set forth in SE-01/PP/2020 as amended by
approval through the issuance of Minister of Finance SE-02/PP/2020 are declared to remain valid insofar as
Regulations. they do not conflict and/or are not regulated by the new
circular.
Further, in the attachment of the Presidential Reg. No.
54/2020, the government outlines the changes in the tax SE-03/PP/2020 which revises the two provisions
revenue target. The tax revenue target has been reduced above shall be effective as of its enactment on 2 April
from Rp1,865 trillion to Rp1,462 trillion. Detailed 2020. The implementation of this circular is subject to
changes in the tax revenue targets can be seen in Table 1. periodic evaluations in accordance with directions or
policies undertaken by the central government/regional
In addition to tax revenues, this attachment contains
governments with regard to addressing COVID-19.
the Memorandum Item pertaining to the details of the
amount of Government Borne Taxes (DTP). Government One of the important points regulated within this
borne taxes are among the fiscal stimuli provided by the regulation is the scheduling of tax dispute trials. The trial
government to address COVID-19 pandemic. In further proceedings formerly scheduled within the prevention
detail, the amount of government borne taxes can be period of COVID-19 spread in accordance with this
seen in Table 2. regulation shall be postponed. Under this regulation, tax
dispute trial proceedings will be held after the prevention
Extended Temporary Suspension of period of COVID-19 spread ends, which is subject to
further notification.
Trial Proceedings at the Tax Court The Deputy Registrar, under instructions from the
Panel of Judges or a Single Judge, shall be responsible
The Tax Court has extended the provisions related to the
for notifying the postponement of trial proceedings
prevention period of COVID-19 spread within the Tax
to relevant parties. Moreover, the registrar is to record
Court to 21 April 2019. This is outlined in the Chairperson
the notifications in the trial proceeding minutes in
of the Court Circular No. SE-03/PP/2020 concerning the
connection with the prevention period of COVID-19
Guidelines for the Adjustments of Trial Proceedings and
spread. The postponement is subsequently informed to
Administrative Services During the Prevention Period of
the parties using letters delivered via electronic media.
Corona Virus Disease 2019 (COVID-19) Spread within
the Tax Court (SE-03/PP/2020). Services for the filing of appeals, lawsuits, or judicial
reviews, either through the helpdesk or direct submission,
Consequently, this also results in the extension of
are temporarily suspended. In addition, the suspension
the temporary suspension of trial proceedings and
will apply to the sending of copies of decisions.
Table 1 Details of the Revisions to the Tax Revenue Posture for Budget
of 2020 (in Thousand Rupiahs)
Code Description Previous Revised
1 Domestic Tax Revenues 1,823,100,176,382 1,427,004,688,832
1.1 Income Tax Revenues 929,902,819,000 703,344,111,452

Value Added Tax and Sales Tax
1.2 685,874,886,800 529,651,102,000
on Luxury Goods Revenues
1.3 Land and Building Tax 18,864,632,582 13,441,937,380
Revenues
1.4 Excise Revenues 180,530,000,000 172,898,640,000
1.5 Other Taxes Revenues 7,927,838,000 7,668,898,00O
2 International Trade Taxes 42,602,640,000 35,625,000,000
Revenues

2.1 Import Duty Revenues 40,002,070,000 33,875,000,000
2.2 Export Duty Revenues 2,600,570,000 1,750,000,000
TOTAL TAX REVENUES 1,642,570,176,382 1,254,106,048,832
(WITHOUT CUSTOMS AND EXCISE)
TOTAL TAX REVENUES 1,865,702,816,382 1,462,629,588,832

Source: Attachment of Presidential Reg. No. 54/2020