Page 3 - Newsletter(Additional Covid-19 Related Tax Incentives and Technical Guidelines for the Appointment of E-Commerce VAT Withholders)

DDTC Newsletter Vol.04 | No.05 I September 2020 Page 3 of 13

Additional Covid-19-Related Tax Incentives and Technical
Guidelines for the Appointment of E-Commerce VAT Withholders

Fourth, procedures for the granting of final Income Tax Slip (Surat Setoran Pajak/SSP) or printout of billing
incentives on income from construction services DTP. codes affixed with a stamp or inscription “FINAL
Fifth, procedures for Article 22 Import Income Tax INCOME TAX ON CONSTRUCTION SERVICES IS BORNE
exemptions. Sixth, the procedures for the reduction BY THE GOVERNMENT AS PER MoF REG. NO. 86/
of Article 25 Income Tax installments. Seventh, the PMK.03/2020”.
provisions on the resubmission of notification of
The SSP or printed billing code is subsequently stored
the use of Article 21 Income Tax DTP incentives,
and administered by the tax withholders. Furthermore,
application for a Certificate of Article 22 Import
withholders are required to report the SSP or printed
Income Tax Exemption (Surat Keterangan Bebas/SKB),
billing code that is affixed with the stamp or inscription
and/or notification of the use of Article 25 Income Tax
in the Periodic Article 4 paragraph (2) Income Tax
installment reduction incentives.
Return.
Eighth, procedures for the submission of reports on
In the event that the tax withholders uses Article 4
the realization of the use of Article 21 Income Tax DTP
paragraph (2) Income Tax e-SPT application as the
incentives, final Income Tax DTP, Article 22 Import
means of submitting tax returns, the recorded State
Income Tax exemptions, and/or reduction of Article Revenue Transaction Number (Nomor Transaksi
25 Income Tax installments. Ninth, procedures for
Penerimaan Negara/NTPN) code is replaced by the
preliminary return of VAT overpayment.
billing code starting with the number 9.
Tenth, the provisions related to business classification
For instance, if the billing code is 123456789012345,
(Klasifikasi Lapangan Usaha/KLU) codes entitled
the NTPN column in the e-SPT is filled in with
to Article 21 Income Tax DTP incentives, Article 22
9123456789012345. On the other hand, the amount
Import Income Tax exemptions, reduction of Article
of rupiah is filled in with the value of the final Income
25 Income Tax installments, and preliminary return of
tax on construction services DTP.
VAT overpayment.
Conversely, if the tax withholders have already
Eleventh, the provisions related to Import Facility
deducted the final Income Tax on income from
for Export (Kemudahan Impor Tujuan Ekspor/KITE)
construction services received by the P3-TGAI
companies, bonded zone operators, bonded zone
recipient taxpayer since the promulgation of MoF Reg.
entrepreneurs, and entrepreneurs within bonded
110/2020, a tax refund may be applied for the withheld
zones that are also operators within bonded zones
income tax that should not otherwise be payable. The
(Penyelenggara di Kawasan Berikat/PDKB) entitled to
application for a tax refund may be submitted by the
tax incentives.
P3-TGAI recipient taxpayer to the Tax Office (Kantor
Twelfth, procedures for the supervision on the Pelayanan Pajak/KPP) where the P3-TGAI recipient
utilization of Article 21 Income Tax DTP incentives, taxpayer is registered.
final Income Tax DTP, Article 22 Import Income
Promulgated on 14 August 2020, SE-47/2020 came
Tax exemptions, reduction of Article 25 Income
into effect thereafter. With the enactment of SE-
Tax installments, and preliminary return of VAT
47/2020, the Director General of Taxes Circular No.
overpayment.
SE-43/PJ/2020 concerning the Implementation
Compared to SE-43/2020, the most significant change Guidelines for Minister of Finance Regulation No. 86/
lies in the section outlining the procedures for the PMK.03/2020 concerning Tax Incentives for Taxpayers
granting of final Income Tax incentives on income from Affected by the Corona Virus Disease 2019 Pandemic
the construction service DTP business. SE-47/2020 (SE-43/2020) is revoked and declared invalid.
reiterates that the final Income Tax on construction
services DTP is only granted to taxpayers that receive
the Acceleration Program for Irrigation Water Use Guidelines for the Appointment of
(Program Percepatan Peningkatan Tata Guna Air/P3-
TGAI). E-Commerce VAT Withholders
The final Income Tax incentive for construction The Director General of Taxes has released a regulation
services DTP shall be granted as of the promulgation as the implementation guidelines for the appointment
of MoF Reg. 110/2020 on 14 August 2020 until the of Trade Through Electronic Systems (Perdagangan
December 2020 Tax Period. On another note, SE- Melalui Sistem Elektronik/PMSE) Value Added Tax
47/2020 requires final Income tax withholders on (VAT) withholders.
construction services to prepare the Tax Payment