Page 3 - Newsletter (VAT Borne by the Government Incentive for Mass Media and the National Implementation of E-Faktur 3.0)

DDTC Newsletter Vol.04 | No.05 I September 2020 Page 3 of 6

VAT Borne by the Government Incentive for Mass Media and
the National Implementation of E-Faktur 3.0

Format and Procedures for Submitting Reports Reg. 123/2020. Second, the report of share ownership
and List of Taxpayers in the Context of Fulfilling the with a special relationship. This report is prepared
Requirements for Income Tax Rates Reduction for as per the format outlined in Appendix A of MoF Reg.
Domestic Corporate Taxpayers in the Form of Publicly 123/2020. Further, the report is attached as part of
Listed Companies (MoF Reg. 123/2020). the Annual Income Tax Return for each tax year.

Taking effect on 2 September 2020, this regulation is Next, publicly listed company taxpayers that have been
an implementing regulation of Government Regulation declared to meet the provisions under this regulation
No. 30 of 2020. The ministerial regulation reaffirms will be included in the list which is subsequently
the adjustments in the income tax rate for corporate submitted to the Minister of Finance through the
resident taxpayers and permanent establishments, Director General of Taxes. The list of publicly listed
which will decline to 22% by 2020 and 2021. The rate company taxpayers is submitted no later than the end
will again decrease to 20% and take effect as of the of each month after the relevant tax year ends.
2022 tax year.
In the event that the monthly report submitted by the
Under Article 3 paragraph (1) of this regulation, Securities Administration Bureau fails to meet the
the Income Tax rate adjustments apply to resident requirements, the taxpayer will personally submit the
taxpayers in the form of publicly listed companies monthly report using the format listed in Appendix
entitled to a 3% lower rate insofar as the total number C of this regulation. Provisions under Government
of paid shares paid to be traded on the Indonesian Regulation No. 77 of 2013 still apply for publicly listed
stock exchange is at least 40% and meet certain company taxpayers that submit Annual Income Tax
requirements. Returns for the 2019 tax year and/or the previous
tax year and/or corrections to the Annual Income Tax
The specific requirements to be met cover four aspects.
Returns for the 2019 tax year and/or the previous tax
First, shares that are released on the stock exchange
year.
must be owned by a minimum of 300 parties. Second,
each party may only own shares of less than 5% of the
total issued or fully paid shares. Third, the minimum
share deposit requirements, number of parties, and Deadline for the Imposition of MSME
percentage of share ownership of each party must be Final Income Tax for Corporate
met for at least 183 calendar days in 1 tax year. Fourth,
the publicly listed company taxpayers must fulfill the Taxpayers
requirements by submitting a report to the Directorate
General of Taxes (DGT). The Directorate General of Taxes (DGT) conveys a
warning on the imposition deadline for final income
The parties that own the traded shares must be parties tax based on Government Regulation No. 23 of 2018
other than the publicly listed companies that buy back concerning Income Tax on Income from Businesses
their shares and parties affiliated with the publicly Received or Earned by Taxpayers with Certain Gross
listed companies, such as the controlling shareholder Turnover (Gov. Reg. 23/2018).
or major shareholder.
The warning on such a deadline is outlined in
As for the format of the report, this regulation Announcement No. PENG-10/PJ.09/2020 concerning
stipulates two types of reports that must be submitted. the Deadline for the Imposition of Final Income Tax
First, a monthly report, which may take the form of Based on Government Regulation No. 23 of 2018 for
share ownership of the issuer or the publicly listed Corporate Taxpayers.
company and a summary that has been reported from
the Securities Administration Bureau. The monthly Through this announcement, the DGT confirms the
report is in the form of share ownership in the issuer deadline for the imposition of final income tax based on
or publicly listed company for the issuer and/or the Gov. Reg. 23/2018 for corporate taxpayers in the form
publicly listed company that carries out its own of Limited Liability Companies (Perseroan Terbatas/
securities administration. PT) that have utilized the final Income Tax under Gov.
Reg. 23/2018 from 2018 until the end of the 2020 tax
Monthly reports are prepared for each tax year year. Conversely, for corporate taxpayers in the form of
by including the name of the taxpayer, taxpayer a cooperative, limited partnership, or firm that utilizes
identification number (Nomor Pokok Wajib Pajak/ final Income Tax under Gov. Reg. 23/2018 since 2018,
NPWP), tax year, and a statement of compliance with the final income tax under said regulation shall be
the requirements referred to under Article 3 of MoF valid until the end of the 2021 tax year.