Page 3 - Newsletter (Expansion of Types of Taxpayers Affected by COVID-19 who Receive Tax Incentive)

DDTC Newsletter Vol.03 | No.10 I May 2020 Page 3 of 11

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

Payment Slip (Surat Setoran Pajak/SSP) or billing code Article 21 Income Tax that has already been withheld
printout. Attachments of the realization report are to must eventually be submitted by the employer to the
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be submitted no later than the 20 of the following employee. Further, this regulation reemphasizes the
month after the tax period ends. status of the employee’s overpaid Annual Income Tax
Returns for the 2020 tax year. As such, the overpayment
from Article 21 Income Tax borne by the government
Guidelines for the Incentives for becomes non-refundable to employees.
Taxpayers Affected by COVID-19 Second, the procedures for the submission of realization
reports for taxpayers that utilize the incentives listed
As is known, the Indonesian Government has released
in MoF Reg. 44/2020. This regulation emphasizes that
a regulation, i.e. MoF Reg. 44/2020, for taxpayers
the taxpayers taking advantage of Article 21 Income
economically affected by COVID-19. Under this
Tax borne by the government incentive, final Income
regulation, the Indonesian Government reissues
Tax borne by the government for MSMEs, exemptions
further provisions on the guidelines of MoF Reg.
from Article 22 import Income Tax, and/or reduction
44/2020. These provisions are outlined in Circular
of Article 25 Income Tax installments.
No. SE-29/PJ/2020 concerning the Guidelines of the
Minister of Finance Regulation No. 44/PMK.03/2020 In further detail, to submit this report, employers and/
concerning Tax Incentives for Taxpayers Affected by or taxpayers must download the format and type of
the Corona Virus Disease 2019 (SE-29/PJ/2020). the realization report file as per the incentives utilized
on the webpage www.pajak.go.id. Additionally, the
Under the regulation signed on 30 April 2020, the
complete and correct realization report file attached
government reiterates the provisions on the provision
with the Tax Payment Slip (Surat Setoran Pajak/SSP)
of incentives aimed at taxpayers affected by the
or printed billing code as per the provisions in MoF
COVID-19 pandemic. By and large, there are at least
Reg. 44/2020 is uploaded through certain channels on
five more detailed elaborations than the provisions
the webpage www.pajak.go.id.
stipulated in MoF Reg. 44/2020.
The realization reports of Article 21 Income Tax and
First, the procedures for the filing of Article 21 final Income Tax borne by the government incentives
Income Tax borne by the government (Ditanggung
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are to be submitted no later than the 20 of the
Pemerintah/DTP) incentive for companies that are
following month after the tax period ends. Realization
entitled to apply but have already withheld taxes.
reports on exemptions from Article 22 Import Income
Under SE-29/PJ/2020, companies that have already
Tax and reductions of Article 25 Income Tax are
withheld taxes may make corrections to periodic
uploaded as per the two deadlines set in MoF Reg.
Article 21 Income Tax returns.
44/2020.
Should the corrections cause tax overpayments,
(i) No later than 20 July 2020 for the April 2020
however, two things may be done, as follows.
tax period to the June 2020 tax period.
(i) In the event that the Article 21 Income Tax
(ii) On 20 October 2020 for the July 2020 tax peri-
payable is not given a DTP incentive, the over-
od to the September 2020 tax period.
payment may be carried forward to the next
tax period. Moreover, in the event that the employer and/or the
taxpayer have not submitted the realization report
(ii) In the event that Article 21 Income Tax payable
until the specified date, the DGT information system
is eligible to the full DTP incentive, the entire
shall notify the relevant employer’s or employee’s
overpayment of Article 21 Income Tax may be
Account Representative.
subject to overbooking application. The over-
booking application is also possible on the
difference of Article 21 Income Tax overpay- Relaxation for the Submission of
ment. The second condition is possible if the
Article 21 Income Tax that is not given the DTP Certificates of Origin
incentive is of a smaller amount compared to
Corona Virus Disease 2019 (COVID-19) pandemic
the overpayment of Article 21 Income Tax with
contributes to the changes in work patterns in the
the Article 21 Income Tax borne by the govern-
administration and utilization of certificates of origin
ment incentive.