Guidelines of Tax Incentives for Taxpayers Affected by the Covid-19 Outbreak (SE-29/PJ/2020)
- May 10, 2020
- Posted by: Administrator
- Category: Tax News
Along with the issuance of PMK-44, on 30 April 2020, the Director General of Tax (“DGT”) issued Circular Number SE-29/PJ/2020 (“SE-29”) concerning the PMK-44 Guidelines for Tax Incentives for Taxpayers Affected by the Covid-19 Outbreak.
The guidelines referred to in this Circular are as follows:
- Article 21 Income Tax Borne by the Government
- Effective Tax Period from when the Notification Letter is submitted until September 2020;
- Since the issuance of PMK-44, on 27 April 2020, Taxpayers should submit the Notification Letter of Art. 21 Tax Borne by the Government for the tax period of April no later than 20 May 2020;
- Entrepreneurs who meet the requirements and/or Taxpayers who have submitted the Article 21 Income Tax Return (“SPT PPh 21”) prior to the issuance of PMK-44 can amend the SPT PPh 21 to get tax incentives.
- Final Income Tax Incentives
- Taxpayers should have most recent Notification Letter of PP 23 after PMK-44 was issued;
- Taxpayers should issue the Tax Payment Slip stamped with “Refund of Final Income Tax deferred by Government per PMK NUMBER 44/PMK.03/2020”;
- Should submit the Notification Letter of Realization of Final Income Tax Borne by the Government in the required format as stated in the attachment, together with the Tax Payment Slip, at the latest on the 20th of the next month after the following tax period.
- Tax Incentive of Article 25 Income Tax Installments
- Effective Tax Period since Notification Letter was submitted to September 2020;
- Since the issuance of PMK-44, on 27 April 2020, Taxpayers should submit the Notification Letter of Incentive of Art. 25 Installment for the tax period of April no later than 15 May 2020;
- Taxpayers that already paid the Installment of Art. 25 Income Tax before the issuance of PMK-44 can perform overbooking of the payment based on MoF Regulation.
- Art. 22 Import Tax Exemption
- Effective Tax Period from the issuance date of exemption certificate until 30 September 2020;
- Taxpayer that has obtained a Tax Exemption Letter is required to submit a Realization Notification every three months as in the format in the appendix, together with the Tax Payment Slip, sent at the latest by 20 July 2020 for the period of April to June 2020 and by 20 October 2020 for the period of July to September 2020
- Preliminary Refund for Value Added Tax
- Taxpayers that filed Monthly VAT Return with the tax overpayment at max. of IDR5 billion (Five Billion Rupiah);
- Taxpayers that are categorized as low-risk VAT-able Entrepreneurs
PMK-44 is effective since 27 April 2020.