To manage the impact of the 2019 Corona Virus Disease pandemic, it is necessary to extend the time required for tax incentives during the national economic recovery period by providing ease of utilizing broader incentives. An extension of the period for granting incentives is given for the tax period January to June 2021.

The summary of the Minister of Finance Regulation Number 9 of 2021 (“PMK-9”) concerning Tax Incentives for Taxpayers Affected by the Corona Virus Disease 2019 Pandemic is as follows:

1. Article 21 Income Tax Incentive
   Article 21 Income Tax incentive is given to employees with specific criteria. The employer must submit a notification to enjoy the stimulus of Article 21 Income Tax borne by the Government (DTP). The employer must also submit a report on the realization of this incentive through the DGT website no later than the 20th of the following month.
2. Final Income Tax Incentive based on Government Regulation Number 23 of 2018
   Income from business received or earned by a Taxpayer with a specific gross revenue according to the provisions as referred to in Government Regulation Number 23 of 2018 is subject to a final Income Tax of 0.5% (zero point five percent) from the gross revenue. The Government bears this final income tax. The taxpayers must provide a certificate of exemption to their transaction counterparties. The taxpayers are obliged to submit a realization report of all the income tax payable through the DGT website no later than the 20th of the following month.
3. Final Income Tax Incentive for Construction Services
   Income from a construction service business based on a Government Regulation regarding Income Tax on income from a construction service business is subject to final Income Tax. The Government shall bear the final income tax referred to on the income received or earned by P3-TGAI Taxpayers (projects of the Ministry of Public Works and Public Housing).
   The tax withholder must submit a realization report of the Government’s final Income Tax through the DGT website no later than the 20th of the following month.
4. Article 22 Imports Income Tax Incentive
   The Taxpayers who meet the criteria will be exempted from the collection of Article 22 Income Tax. Such exemption is given through a Certificate of Exemption from Collection of Article 22 Income Tax on Imports by applying through the DGT website. The Taxpayers are also required to submit a realization report of Article 22 Income Tax Exemption no later than the 20th of the following month after the tax period ends.
5. Article 25 Income Tax Instalment Incentive
   The Taxpayers who meet the stipulated criteria can use the incentive of reduction of Article 25 Income Tax instalments by 50% (fifty percent) of the Tax Payable. The Taxpayers shall apply through the DGT website and are obliged to submit a realization report no later than the 20th of the following month after the tax period ends.