Page 5 - 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 5 of 9

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

Table 2 Details of Government Borne Taxes (in Rupiah)

No Memorandum Item Previous Revised

1 Government borne income tax 11,542,556,273 20,145,686,273
2 Import duties 694,100,000 405,574,336
3 Additional government borne
0 64,000,000,000
taxes and import duties
Source: Attachment of Presidential Reg. No. 54/2020
The regulation also stipulates provisions on information the application for exemption certificates (surat
services and delivery of other documents. First, all keterangan bebas/SKB) of Article 22 income tax, and the
information services and delivery of other letters through utilization of Article 25 income tax installment reduction
the helpdesk service (delivered in person) are suspended electronically.
temporarily during the prevention period of COVID-19
Taxpayers are to submit their application for the
spread.
incentives to the DGT electronically due to the state
Second, users of information services are advised to of emergency resulting from the escalating COVID-19
employ online channels, such as email (informasipp@ spread. Under this circular, the electronic submission
kemenkeu.go.id), contact services on the Tax Court of notifications or applications for incentives shall be
Secretariat website (www.setpp.kemenkeu.go.id), and conducted through DGT Online.
other online facilities. Third, other information regarding
As for the procedures to obtain government borne
the Tax Court during the prevention period of COVID-19
Article 21 income tax incentive, this regulation outlines
spread may be acquired by telephone/Whatsapp on
that employers may submit the notification of the use of
08119202032.
incentives through DGT Online. Notification regarding
whether or not the employers’ applications are accepted
Implementing Regulations on Tax shall be announced through the DGT Online system as
well. A similar scheme also applies to the reduction of
Incentives for Taxpayers Affected by Article 25 income tax installments.
COVID-19 Moreover, requests for exemptions from Article 22
income tax withholding may be submitted electronically
The Director General of Taxes has issued guidelines on through DGT Online. Upon the request, the DGT may
the provision of tax incentives for taxpayers affected by issue SKB of the withholding of Article 22 import tax or
COVID-19 outbreak, which have come into effect as of a rejection letter. SKB can be issued in the event that the
this month. The guidelines are set forth in the Director taxpayer meets the criteria of Business Classification
General of Taxes Circular No. SE-19/PJ/2020 concerning (klasifikasi lapangan usaha/KLU) and/or an Import
Tax Incentives for Taxpayers Affected by the Corona Facility for Export (Kemudahan Impor Tujuan Ekspor/
Virus Outbreak (SE-19/PJ/2020). The circular has been KITE) company.
effective as of 1 April 2020.
The notification regarding whether the SKB application
The guidelines for the provision of the incentives have is granted or not is given once the taxpayer fills the SKB
been issued to produce a common understanding. In application menu. In this regard, the DGCE may confirm
other words, this regulation serves as the guidelines for the validity of the SKB obtained through the online
the implementation and on-field operational uniformity facilities or services provided by the DGT.
to engender convenience, justice, and legal certainty.
As for accelerated VAT refunds, the regulation stipulates
that this is under the authority of the Tax Office (Kantor
In general, this circular outlines the technical provisions
for the implementation of four types of tax incentives Pelayanan Pajak/KPP) where the taxable person for VAT
to address the impact of COVID-19 based on MoF Reg. purposes (pengusaha kena pajak/PKP) is registered/
No. 23/2020. First, the provision of Article 21 income administered. The Tax Office shall process accelerated
tax borne by the government incentives. Second, the refund requests for low-risk PKP with reference to tax
exemption from Article 22 income tax on certain imports. returns.
Third, the reduction of Article 25 income tax installments.
Refunds shall be confirmed if the PKP fills in the
Fourth, accelerated value added tax refunds.
preliminary return column in the tax return or a separate
Some additional procedures set forth in this regulation application letter. The request can then be processed
pertain to information regarding the utilization of insofar as audits or preliminary investigations have not
government borne Article 21 income tax by taxpayers, been openly conducted within the requested preliminary
return tax period.