Tax Alert 01.2020: Tax Insentives For Taxpayers Affected By Covid-19

Coronavirus outbreak (COVID-19) has been a national disaster that affects the stability of economic and productivity of certain business sectors in Indonesia. In order to maintain the stability of economic growth, consumer purchasing power, and the productivity of certain business sectors in the midst of the Coronavirus outbreak, the Indonesian Government has decided to provide some tax incentives through the issuance of Ministry of Finance Regulation No. PMK – 23/PMK.03/2020.

Some of keys points of the regulation:

Income Tax Art. 21 Borne by the Government
The Government will bear Income Tax Art 21 for employees who have NPWP and receive an annualized income not exceeding IDR. 200 million.
Exemption on Income Tax Art. 22 on Import
The Exemption is given in the form of Tax Exemption Letter (SKB) for which application must be submitted to the Tax Service Office where the Taxpayer is registered.
Income Tax Art. 25 reduction by 30%
The Government grants a 30% reduction on installment of Income Tax Art. 25 to those Taxpayer who submit a notification to the Tax Service Office.
Preliminary VAT Restitution
Preliminary VAT restitution on VAT Return with overpayment at the amount of not exceeding IDR 5 Billion for VAT Enterpreneurs considered as low risk. VAT Enterpreneurs do not need to submit an application to be considered as low risk as long as the KLU and/or KITE status is still valid

This regulatin shall come into effect on April 1 2020.

Attachments :
SALAKI – PMK-23 Tahun 2020.pdf