Tax Facilities as an Impact of Covid-19 Pandemic
- November 18, 2020
- Posted by: Administrator
- Category: Tax News
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The MoF has issued Regulation No. 143/PMK.03/2020 regarding the Tax Facilities for Goods and Services Required in the Handling of the Covid-19 Pandemic and on the Extension of Income Tax Facilities based on Government Regulation (GR) No. 29 of 2020 regarding Income Tax Facilities for Handling Covid-19 (“PMK-143”).
This PMK-143 is issued in order:
- to revoke MoF regulation No. 28/PMK.03/2020 regarding the Granting of Tax Facilities for Goods and Services Needed in Handling Covid-19 (“PMK-28”), because PMK-28 has not accommodated the need for tax facilities to support the availability of goods and services in handling the Covid-19 pandemic;
- to respond to the impact of Covid-19 spread, the tax facilities are still needed to support the availability of goods and services in handling of the Covid-19 pandemic, as well as Income Tax facilities that encourage the industry of Health Tools and/or Household Health Supplies and Income Tax facilities in relation with community support in the form of donations, availability of Human Resources in the Health Sector, and the availability of assets, in handling Covid-19.
The major change in this PMK-143 is the addition of Tax Subjects (Parties) that can enjoy these facilities, as follows:
| No | Tax Subject (Parties) | |
| Before (PMK-28) | After (PMK-143) | |
| 1 | Government Agencies | Government Agencies |
| 2 | Hospitals | Hospitals |
| 3 | Other Parties (parties other than Government Agencies or Hospitals that are appointed by Government Agencies or Hospitals to assist in handling the Covid-19 pandemic) | Other Parties (parties other than Government Agencies or Hospitals that are appointed by Government Agencies or Hospitals to assist in handling the Covid-19 pandemic) |
| 4 | Pharmaceutical industry of Vaccine / Drug Production upon import or acquisition of raw materials vaccine / drug for handling Covid-19 | |
| 5 | Taxpayers that obtain vaccines / drugs for handling Covid-19 from Pharmaceutical industry of vaccines / drugs | |
| From Apr-2020 up to Dec-2020 | From Oct-2020 up to Dec-2020 | |
The Tax facilities provided in this PMK-143 are:
- Value Added Tax (VAT) incentives
- Article 22 Income Tax incentives
- Article 21 Income Tax incentives
- Article 23 Income Tax incentives
- Income Tax incentives
PMK-143 is applied since 01 October 2020.