On 21 January 2022, the MoF issued regulation No. 3/PMK.03/2022 (“PMK-3”) concerning Tax Incentives for Taxpayers Affected by the Covid-19 Pandemic. PMK-3 is given mainly to replace the previous regulations (No. 9/PMK.03/2021 in conjunction with No. 149/PMK.03/2021) and to extend the period of granting some incentives until June 2022.

The main points of PMK-3 are as follows :

1. An extension of the tax incentive period for Article 25 Tax Installment, Article 22 import tax, and final income tax for construction services until the June 2022 tax period.
2. The Taxpayer can utilize the Tax Incentive by submitting a Notification Letter through the DGT website.
3. The list of the Business Group Codes (‘KLU’) of tax incentive recipients has been reduced to be as follows:
   • Article 22 Import Tax Exemption: 72 KLU (previously 397 KLU)
   • Article 25 Income Tax Installments: 156 KLU (previously 481 KLU)
4. A Taxpayer that has reported the realization report on the utilization of tax incentives for the January – December 2021 periods may still be able to make amendments no later than 31 March 2022.

PMK-3 became effective on 25 January 2022.