The Minister of Finance (MoF) has issued regulation No. 226/PMK.03/2021 (“PMK-226”) dated 31 December 2021 regarding the 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.

The tax facilities stipulated in PMK-226 remain the same as in the previous regulation (No. 239/PMK.03/2021 in conjunction with No. 83/PMK.03/2021). The main points of this regulation are as follows:

• Taxable services concerning the handling of the Covid-19 Pandemic are now no longer eligible for VAT incentives.
• VAT borne by the Government cannot be credited.
• Extension of the period for the tax facilities, which are now applicable until 30 June 2022.

PMK-226 became effective on 1 January 2022.