Page 7 - 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 7 of 9

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

which under Article 11 paragraph (2) of the General Provisions related to this matter refer to Article 36
Tax Provisions and Procedures Law, should be no later paragraph (1c) of the General Tax Provisions and
than one month after the issuance of the notification Procedures Law in which the Director General of Taxes
or court decree/decision, falls within the force majeure must make a decision on the application no later than
period, the deadline for the overpayment refunds shall be six months as of the date the application is received. The
extended to a maximum of one month. regulation stipulates that the decision on the application
will be extended to a maximum of six months after the
The period of tax overpayment refunds, therefore, shall
pandemic ends. Accordingly, the period of the decision
be two months as of the issuance of the Notice of Tax
shall be twelve months as of the date the application is
Overpayment Assessment and the decision letter or the
received.
receipt of appeal/judicial review decisions.
The extension will also apply to the submission of
Third, the extension of the issuance period of notice of tax
requests for reduction of Land and Building Tax
assessment (surat ketetapan pajak/SKP) in connection
administrative fines, reduction or cancellation of the
with the request for tax overpayment refunds. Referring
Notice of Land and Building Tax Assessment, notification
to Article 17B Paragraph (1) of the General Tax Provisions
of tax due, and the invalidity of the Notice of Land and
and Procedures Law, the notice of tax assessment is to be
Building Tax Collection as stipulated in MoF Reg. No. 81/
issued no later than twelve months as of the date of the
PMK.03/2017.
notification letter stating that overpayments are received
in full.
Incentives for Companies Receiving
If the period falls within the force majeure period, it shall
be subject to an extension of a maximum of six months. Bonded Zone Facilities and Ease of
Thus, the issuance period of SKP may be eighteen months
KITE
as of the notification letter stating that overpayments are
received in full.
The Minister of Finance has issued a regulation on
Fourth, the extension of the period of the decision
additional incentives for companies. These incentives
on objections filed by taxpayers. Based on Article
are outlined in the Minister of Finance Regulation No.
26 paragraph (1) of the General Tax Provisions and
31/PMK.04/2020 concerning Additional Incentives for
Procedures Law, the Director General of Taxes must
Companies that Receive Bonded Zone Facilities and/
establish a decision on objections submitted by taxpayers
or Import Facility for Export to Address the Impact of
no later than twelve months as of the date the objection
Corona Virus Disease (Corona Virus Disease 2019/
letter is received.
COVID-19) (MoF Reg. No. 31/2020).
If the period expires within the force majeure period, the
The regulation is aimed at addressing the impact of
issuance of the decree shall be extended to a maximum of
COVID-19 which disrupts the domestic supply chain due
six months. Accordingly, the period of the decision shall
to the sluggish global economic growth. Bonded Zone
be eighteen months from the date the objection letter
refers to a bonded storage area to stockpile imported
was received.
goods and/or goods originating from other places in the
However, in the event that the objection research team
customs area to be processed or assembled before being
has sent a Notice to Appear until 9 April 2020, the period
exported or imported for use.
of the decision on the objection shall be no later than one
month after COVID-19 pandemic is declared over. Under this regulation, the export of bonded zone
products to other places within the customs area will not
In contrast, if the objection research team has not sent a
reduce the quota for the sale of products to other places
Notice to Appear until 9 April 2020, the decision on the
within the customs area in the current year. Physical
objection shall be notified no later than eighteen months
examinations of inward and outbound manifests to and
as of the date the objection letter is received. Notification
from the bonded zone are still enforced, both directly
of Appear must be submitted no later than one month
or using available information technology. In the event
after the COVID-19 pandemic is declared over. The
extension of the settlement period for the submission of that the location of the bonded storage area is subject to
the objection does not include the settlement period for the Large-Scale Social Restrictions (Pembatasan Sosial
the submission of the Land and Building Tax objection. Berskala Besar/PSBB), the area may be approved to
perform self-service.
Fifth, the extension of decisions on requests for reduction
or elimination of administrative sanctions, reduction Further, entrepreneurs in the bonded zone may import
or cancellation of incorrect notices of tax assessment, some goods into the zone, among others, disinfectants,
reduction or cancellation of incorrect notices of tax masks, personal protective equipment, thermometers,
collection, and cancellation of audit results. and/or other items required to handle COVID-19. The