Page 7 - Newsletter (Expansion of Types of Taxpayers Affected by COVID-19 who Receive Tax Incentive)

DDTC Newsletter Vol.03 | No.10 I May 2020 Page 7 of 11

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

settlement period due to matters that are beyond the related to certain means of transport originating from
authority of the KPP or KP2KP, such as disruptions to outside the customs area. In terms of the first and
the Directorate General of Taxes’ information system, second aforementioned economic activities, the types
disconnected internet network, and power outage. of certain means of transport of which the imports and
Further, this regulation emphasizes that in a force supply are not subject to VAT are listed in Table 2.
majeure, KPP and KP2KP must make an announcement Further, for the third economic activity, there are three
regarding the force majeure and place it in easily categories of JKP related to certain means of transport
readable places as public announcement. of which the supply is not subject to VAT withholding.
The first category is services received by the National
In the event that the force majeure results in nation-
Commercial Shipping Enterprise, National Fishing
wide disruptions to registration applications, the
Enterprise, National Port Enterprise, and National
announcement must be posted on the Directorate
River, Lake, and Crossing Enterprise. The types of
General of Taxes’ website (http://www.pajak.go.id).
services include ship rental services, port services,
This regulation also authorizes the Director General of
and ship maintenance and repair services.
Taxes to decide on special policies required to support
services to taxpayers in force majeure. The second category is services received by the
National Air Carrier Enterprise which includes aircraft
Additionally, in terms of the application received by
leasing and aircraft maintenance and repair. The third
KP2KP in force majeure and the taxpayer chooses to
category is services received by the National Train
forward the application to the KPP where the taxpayer Enterprise that includes railroad maintenance and
is registered, the KP2KP issues a receipt and forwards repair services.
the application to the KPP where the taxpayer is
Further, for the last economic activity, namely the
registered with a facsimile cover letter. The procedures
utilization of JKP from outside the customs area
for the completion of services in force majeure and
related to certain means of transport, the VAT on
examples of formats for Receipts, facsimile cover
aircraft rental services that are utilized by the National
letters, and announcements regarding force majeure
Air Carrier Enterprise is not withheld.
are listed in Appendix XVIII which is an integral part
of SE-27/PJ/2020. MoF Reg. 41/2020 also states that the granting of
the non-withholding of VAT facility will be provided
through the Certificate of Uncollected Tax (Surat
Procedures for Utilizing Non-Withheld Keterangan Tidak Dipungut/SKTD). Thus, taxpayers
VAT Incentive for Certain Means of that import, receive a supply of certain means of
transport, and utilize and receive a supply of JKP
Transport related to certain means of transport must have
evidence in the form of SKTD documents.
The Indonesian government has issued a regulation
on the procedures for the imports and utilization of SKTD must be obtained prior to submitting the import
Taxable Services (Jasa Kena Pajak/JKP) for means customs declaration, receiving supply, and/or utilizing.
of transport on which Value Added Tax (VAT) is not In addition, for certain types of imports and supply
withheld. The provisions are outlined in the Minister of of BKP in the form of certain means of transport,
Finance Regulation No. 41/PMK.03/2020 concerning taxpayers are also required to prepare documents
in the form of Import and Acquisition Plan (Rencana
Requirements and Procedures for the Import and
Supply of Certain Means of Transport and the Supply Kebutuhan Impor dan Perolehan/RKIP).
and Utilization of Taxable Services related to Certain
To obtain SKTD, a taxpayer must meet several
Means of Transport on which Value Added Tax is Not
requirements. First, the taxpayer has submitted annual
Withheld (MoF Reg. 41/2020).
Income Tax returns for the last two tax years and/or
Under the regulation in effect since 24 April 2020, periodic VAT returns for the last three tax periods.
there are four types of economic activities related Second, the taxpayer does not have any tax arrears
to certain means of transport on which VAT is not at the tax office where such taxpayer is registered or
withheld. First, imports of certain means of transport. its branch. If the taxpayer has tax arrears, SKTD may
Second, the supply of certain means of transport. be issued insofar as the party wishing to benefit from
Third, the utilization of JKP in relation to certain the VAT relief has obtained permission to delay the
means of transport of which the supply is conducted payment or pay in installments.
in the customs area. Fourth, the utilization of JKP
Third, the taxpayer’s main business activities are in