Page 4 - Newsletter (VAT on Digital Goods and Services from Overseas and The Resuming of Trial Proceedings and Tax Court Services)

DDTC Newsletter Vol.03 | No.11 I May 2020 Page 4 of 7

VAT on Digital Goods and Services from Overseas and
The Resuming of Trial Proceedings and Tax Court Services

As is known, Perppu No. 1/2020 also stipulates 4 (SOEs) and/or through designated SOEs. PMN is
taxation policies. First, the adjustments to income intended to improve the capital structure of SOEs and/
tax rates of domestic corporate taxpayers and or SOE subsidiaries affected by Covid-19 and enhance
permanent establishments (Bentuk Usaha Tetap/ the business capacity of SOEs and/or SOE subsidiaries.
BUT). Second, tax treatment on trading through Second, the placement of funds. To implement the PEN
electronic systems (Perdagangan Melalui Sistem program, the government may place funds to provide

Elektronik/PMSE). Third, the extension of the liquidity support to banks that carry out credit/
implementation of tax rights and fulfillment of tax financing restructuring and/or provide additional
obligations. Fourth, the granting of authority to the credit/working capital financing.
Minister of Finance to grant customs facilities in the
Funds are placed in participating banks. Participating
form of exemption or relief of import duties to address
banks are to meet several criteria, including: a
the force majeure, recover, and strengthen the national
commercial bank that is an Indonesian legal entity and
economy.
at least 51% of its shares are owned by Indonesian
citizens, banks categorized as healthy, and is among
Implementing Regulation for the 15 banks with the largest assets.
National Economic Recovery Program Third, government investment. In implementing the
PEN program, the government may make government
The government has issued implementing regulation investments. Fourth, to implement the PEN program,
for the national economic recovery program. These the government may provide guarantees. The
provisions are stipulated Government Regulation guarantee may be provided directly by the government
No. 23/2020 concerning the Implementation of the and/or through the appointed guaranteeing business
National Economic Recovery Program in the Context entity.
of Supporting State Financial Policies to Address the
Fifth, policy through state expenditure. The PEN
2019 Corona Virus Disease (Covid-19) Pandemic
program through state expenditure includes but is not
and/or to Counter Threats that Harm the National
limited to the provision of interest subsidies to eligible
Economy and/or Financial System Stability and Saving
banking debtors, finance companies, and institutions
the National Economy (Gov. Reg. 23/2020). This
channeling government credit programs.
regulation serves as an implementing regulation of
Article 11 paragraph (7) of Perppu No. 1/2020. The aforementioned banking debtor and finance
The national economic recovery program (Pemulihan companies must meet several requirements, i.e. being
a micro business, small business, medium business,
Ekonomi Nasional/PEN) aims to protect, maintain, and
and/or cooperative with the highest credit ceiling
enhance the economic capacity of business players in of Rp 10,000,000,000, not on the national blacklist,
doing business. This program is implemented under included in the current performing loan category,
the following principles. and having a taxpayer identification number (Nomor
i. The principle of social justice; Pokok Wajib Pajak/NPWP).
ii. The greatest prosperity of the people; To finance the PEN program, the government may issue
government securities (Surat Berharga Negara/SBN)
iii. Supporting business players;
purchased by Bank Indonesia on the primary market.
iv. Applying the prudence principle to policies, The Minister who carries out government affairs in
as well as good, transparent, accelerated, fair, the financial sector is in charge of supervising and
and accountable governance as per statutory evaluating the implementation of the PEN program.
provisions; Supervision and evaluation include monitoring,
evaluation, and control. The evaluation results of the
v. Not causing moral hazard; and
implementation of the PEN program will later be
vi. Distributing costs and risks among reported to the president.
stakeholders according to their respective
duties and authorities.
The government may implement the PEN through
several measures. First, state equity participation
(Penyertaan Modal Negara/PMN). The government
may implement PMN on State-Owned Enterprises