The DGT has issued Circular Number SE-25/PJ/2019 (“SE-25”) as a guideline to calculate the amount of Article 25 Income Tax instalments in the current fiscal year for taxpayers that are required to prepare periodic financial statements (e.g. new taxpayers, banks, state-owned and local government-owned enterprises, and public companies) and certain individual entrepreneurs.

The points of SE-25 can be summarized as follows:

1. Changes in several conditions of a taxpayer that affect the amount of Article 25 instalments for taxpayers with periodic financial statement obligations in the case that the taxpayer:
   1. has fiscal tax loss carried forward;
   2. is a public company with the tariff reduction facility;
   3. obtains the net income reduction facility; and
   4. obtains the 50% tariff reduction facility.
2. Confirmation related to the definition of net fiscal profit for the above-mentioned companies.
3. Article 25 instalment for the current tax year for taxpayers who no longer meet the criteria as taxpayers as referred to in Government Regulation Number 23 of 2018, i.e. Final Tax for taxpayers with certain maximum revenue.
4. Calculation of Article 25 instalments for certain individual entrepreneurs.
5. Explanations regarding:
   1. the overbooking procedures for Article 25 instalment overpayment;
   2. The Article 25 Instalment obligation which is calculated based on MoF Regulation Number 215 215/PMK.03/2018 as referred to in this circular is effective starting from the fiscal period January 2019; and
   3. During the transition period of January 2019 up to March 2019, any administrative penalty incurred due to the incorrect calculation of Article 25 instalment is nullified by an official assessment, as it is considered to be not the taxpayer’s mistake.

This Circular Letter is dated September 24, 2019.