Page 10 - Newsletter (Expansion of Types of Taxpayers Affected by COVID-19 who Receive Tax Incentive)

DDTC Newsletter Vol.03 | No.10 I May 2020 Page 10 of 11

Expansion of Types of Taxpayers Affected by COVID-19 who
Receive Tax Incentive

Amendments to Provisions on Legal regulation.
Products and Administration Period On another note, this regulation stipulates provisions
of Tax Services on the extension of tax administration service
completion period in force majeure as per Minister
The lower number of employees working at the office of Finance Regulations, Director General of Taxes
and the work from home (WFH) policy render some Regulations, and/or Director General of Taxes
tax administration service procedures to be adjusted. Circulars.
As such, the Directorate General of Taxes (DGT) has
First, completion in a maximum of one to seven working
issued a regulation on tax administration service
days. The completion period of the first category of
procedures in force majeure due to COVID-19.
tax administration services may be extended to a
These provisions are outlined in Circular Number maximum of fifteen working days since the application
SE-26/PJ/2020 concerning Procedures the is received in full. Second, completion in a maximum of
Implementation of Tax Administration Services in seven days to one month. The extension for this second
Force Majeure Due to the 2019 Corona Virus Disease category is set for a maximum of one month since the
Pandemic (SE-26/PJ/2020). This circular was issued complete application is received.
as per the latest developments in the spread of
Third, completion in a maximum of one month
COVID-19, which affects government administrative
or more. The completion of the third category of
services, including in the taxation sector.
tax administration services is not eligible for an
Under this regulation, the vertical units within the DGT extension. Fourth, completion if the legal products
will continue to operate as per WFH procedures during from tax administration services are issued ex officio.
force majeure. Activities in taxation service units that The extension of the completion period of this fourth
perform direct contact with taxpayers, however, are category of legal products in force majeure refers to
suspended and instead, tax administration services are the request for completion submitted by the taxpayer.
carried out through available electronic optimization.
Moreover, there are exceptions to the abovementioned
On a side note, if electronic means are not available
periods. The extension becomes invalid if the
or cannot be used, tax administration services may
completion deadline is stipulated in statutory
be carried out by post, freight forwarding, or courier
provisions, government regulations in lieu of laws, or
services with proof of postage.
government regulations.
Upon requests for electronic tax administration
On another note, the extension does not apply if the
services, the Head of DGT Regional Office, the Head of
issuance of legal products as per requests for tax
Small Tax Office, or the Head of KP2KP may assess the
administration services can be submitted online
completeness of the documents. If the documents are
through certain channels stipulated by the DGT. In the
incomplete, the taxpayer will be notified to complete
context of the types of tax incentives, administrative
the required documents, either electronically, by
ease in the form of extension of the completion period
post, or by freight forwarding services. Requests
cannot be given to taxpayers that utilize Article 22
for clarification of the completeness of the required
import Income Tax exemption and non-withholding of
documents should be submitted no later than three to
VAT facilities on imports of BKP.
four working days after the application is received.
Moreover, legal products from tax administration
Revised Provisions on Trial
services could initially be issued using ordinary
signatures, stamp signatures, or electronic signatures. Proceedings and Administrative
All three types of signatures have the same legal force.
The signing of legal products with stamp signatures, Services at the Tax Court
however, is no longer permitted as this circular takes
The Tax Court has extended the provisions on the
effect.
spread of COVID-19 within its environment. This is
This is due to the fact that the signing can still be outlined in the Chairperson of the Court Circular No. SE-
conducted normally. Additionally, electronic signatures 06/PP/2020 concerning the Third Amendment to the
have also been applied to several types of services. Chairperson of the Tax Court Circular Number SE-03/
Taxpayers and other parties are, thus, required to PP/2020 concerning the Guidelines for Adjustments
report the legal products from tax administration to the Trial Proceedings and Administrative Services
services that have been issued and signed using the during the Prevention Period of Corona Virus Disease
stamp regulations prior to the enactment of this 2019 (COVID-19) Spread within the Tax Court