Expansion of Business Sectors as Tax Incentive Recipients Affected by Covid-19
- November 9, 2021
- Posted by: Administrator
- Category: Tax News
To support the acceleration of national economic recovery from the impact of Covid-19, the Ministry of Finance (“MoF”) has issued a regulation No. 149/PMK.03/2021 dated 25 October 2021 regarding the second amendment of MoF Regulation No. 9/PMK.03/2021 on Tax Incentives for Taxpayers Affected by the Corona Virus Disease 2019 (“PMK-149/2021”). PMK-149/2021 is effective from 26 October 2021.
The major change in the new regulation is that the Government has increased the number of business sectors (Klasifikasi Lapangan Usaha – “KLU”) as the recipients for most of the tax incentives (except for the Art. 21 employee income tax incentive). The number of business sectors for each incentive based on the previous and new regulation is as follows:
| No. | Type of tax | Tax Incentive | Number of Business Sectors (Previous Regulation) |
Number of Business Sectors (New Regulation) |
| 1 | Art. 21 Employee Income Tax | Borne by the Government | 1189 KLUs | 1189 KLUs |
| 2 | Art. 22 Income Tax on Import | Exemption | 132 KLUs | 397 KLUs |
| 3 | Art. 25 Corporate Tax Installment | Reduction | 216 KLUs | 481 KLUs |
| 4 | VAT | Early refund of VAT Overpaid | 132 KLUs | 229 KLUs |
Notes
- The tax incentives of Art. 25 reduction and/or early refund of VAT for the additional business sectors are applicable from the tax period October 2021.
- The tax incentive of Art. 22 Import tax exemption for the additional business sectors is applicable upon the issuance of an exemption certificate (Surat Keterangan Bebas – SKB).
- The application for early refund of VAT should be submitted no later than 31 January 2022.
In addition, the new regulation also extends the deadline for submission of amendment of incentive realization reports (if any) from October 2021 to November 2021.