Page 3 - Newsletter (Tax Return Procedures During COVID-19 Pandemic and Provisions on Article 25 Income Tax Installments at a New Rate)

DDTC Newsletter Vol.03 | No.09 I May 2020 Page 3 of 9

Tax Return Procedures During COVID-19 Pandemic and Provisions
on Article 25 Income Tax Installments at a New Rate

Procedures for the Filing, Receipt, and Processing of 2019 annual income tax returns. The DGT provides relaxation
Tax Year Income Tax Returns in connection with the 2019 for the filing of 2019 annual tax returns documents for
Corona Virus Disease Pandemic (PER-06/2020). both corporate and individual taxpayers.
This regulation was released to provide legal certainty The relaxation is also conveyed by the DGT in Press
and ease for individual and corporate taxpayers in filing Release No. SP-16/2020 titled ‘The Relaxation of the
annual income tax returns for the 2019 tax year in force Filing of Annual Tax Returns for 2019 Tax Year’ (SP-
majeure due to the COVID-19 pandemic. 16/2020) published on Sunday (19/4/2020).
Under the regulation, the Director General of Taxes Referring to PER-06/2020 and SP-16/2020, corporate
restipulates five provisions to facilitate the fulfillment of and individual taxpayers that maintain bookkeeping,
the obligation to submit annual tax returns for the 2019 but whose financial statements are not or have not been
tax year due to the Corona virus in Indonesia. audited by any public accountant until the deadline for
the filing of annual tax returns are only required to attach
First, the signing of annual income tax returns. The
the files summarized in Table I.
regulation emphasizes that the signing may be carried
out normally, with a signature stamp or electronic or Table I – The Simplification of Attachment Documents of
digital signature, all of which have the same legal force. Annual Income Tax Returns
Digital signatures may also be made using electronic
No Corporate Taxpayers Individual Taxpayers
certificates, verification codes sent by the DGT, or other
electronic signatures stipulated by the DGT.
1 Form 1771 and attachments Form 1770 and attachment
1771 I – VI 1770 I – IV
Taxpayers may use electronic certificates to sign the
annual income tax returns insofar as the electronic 2 Transcript of Excerpts The financial statements are
certificates are issued by the DGT or electronic certificate of Elements of Financial in the form of simplified
providers as per the regulation stipulating electronic Statements submitted as balance sheets
temporary substitutes
certificate provider services.
for financial statement
documents
Second, the deadline for filing annual income tax returns.
In further detail, the deadline for annual income tax 3 Tax payment slip if the tax Tax payment slip if the tax
returns for individual taxpayers is no later than 31 March return is underpaid return is underpaid
2020. However, administrative tax sanctions for annual
Source: Processed by the Author from PER-06/2020.
income tax returns that are filed past the deadline shall
be abolished provided that they are submitted no later
than 30 April 2020. To be able to take advantage of this relaxation, however,
taxpayers must submit a notification to the DGT before
Conversely, annual corporate income tax returns should
the annual tax returns for the 2019 tax year are filed. The
be filed no later than 30 April 2020. The deadline applies
notification is to be submitted electronically or in writing
to (i) individual taxpayers that maintain bookkeeping
to the Tax Office where the taxpayer is registered in the
with the fiscal year ending on 31 December 2019; (ii)
event of a disruption in the DGT’s channels.
individual taxpayers who are required to keep records/
bookkeeping; (iii) individual taxpayers who are subject Furthermore, complete financial statements and various
to final withholding tax, including from businesses with a documents required under the Director General of Taxes
certain gross turnover; and (iv) corporate taxpayers that Regulation No. 06/PJ/2019, which previously could not
maintain bookkeeping with the fiscal year ending on 31 be attached, must be submitted no later than 30 June
December 2019. 2020 using corrected tax returns.
Third, the procedures for the filing of annual income The policy on the relaxation of attachment documents in
tax returns. Annual income tax returns may be filed via annual income tax returns, however, cannot be utilized
e-Filing, in particular, for taxpayers that are registered by taxpayers that declare tax overpayments and request
at the Medium Tax Office (KPP Madya), Jakarta Special for accelerated refunds. Moreover, this facility may not be
Regional Tax Office, and Large Regional Tax Offices, or utilized by taxpayers that file tax returns after 30 April
taxpayers that have previously used e-Filing. In addition, 2020.
annual tax returns may also be sent by post with proof of
Fifth, reviews on annual Tax Returns by the DGT. This
postage or shipping companies or courier services with
regulation outlines that annual income tax returns filed
proof of postage.
through corrections are subject to reviews by the DGT
Fourth, the simplification of the completeness of from 1 July 2020.
information and/or documents that must be attached in