Update on Extension of Tax Incentives Related to Covid-19

On 11 July 2022, the Minister of Finance (MoF) issued two regulations related to Covid-19 Tax Incentives (to extend the incentive period until 31 December 2022) as follows:

  1. MoF Regulation No. 113/PMK.03/2022 (“PMK-113”) as the amendment of MoF regulation No. 226/PMK.03/2021 (“PMK-226”) regarding Tax Facilities for Goods and Services Required in the Handling    of the Covid-19 Pandemic and the Extension of Income Tax Facilities based on Government Regulation No.  29 of 2020 regarding Income Tax Facilities for Handling Covid-19.
  2. MoF Regulation No. 114/PMK.03/2022 (“PMK-114”) as the amendment of MoF regulation No.3/PMK.03/2022 (“PMK-3”) regarding Tax Incentives for Taxpayers Affected by the Covid-19 Pandemic.

Please refer to the previous GNV Tax Update (February 2022 edition) for a detailed summary of PMK-226 and PMK-3.

The highlights of the changes under PMK-113 and PMK-114 are as follows:


  • The Government has extended the income tax facilities for medical workers, Article 22 Income Tax and VAT to 31 December 2022. Please note the procedures for resubmission of each recommendation letter and/or   the tax exemption letter.
  • VAT-able entrepreneurs are now required to prepare VAT invoices only through the e-Faktur system (for deliveries under PMK-113). PMK-113 also sets reporting deadlines for VAT invoice revisions related to   deliveries during the periods of 2021 and 2022, which should be made at the latest by 31 December 2022   and 31 January 2023, respectively.
  • Deliveries of certain taxable medical goods (i.e., vaccines and/or drugs for COVID-19) which previously enjoyed a VAT exemption can no longer enjoy the VAT incentive under PMK-113.


  • The tax incentive period for Article 25 Tax Installment, Article 22 import tax, and final income tax for construction services is also extended until the December 2022 tax period.
  • The Taxpayer can utilize the Tax Incentive by resubmitting a Notification Letter through the DGT’s website. Specifically for the Article 25 Income Tax incentive, the Notification Letter should be submitted by 9 August   2022 at the latest (within 30 days from PMK-114 coming into effect).
  • Please also be aware that relevant Taxpayers must resubmit the realization reports of Final Income Tax borne by the Government for the period of January to June 2022 in order to take advantage of the tax incentive   under PMK-114.
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