illustration

Ministry of Finance Extends Tax Incentives Until December 2020

The Directorate General of Tax (DGT) of the Ministry of Finance (Ministry of Finance) extended the provision of stimulus in the form of tax incentives in the context of handling the impact of co-19 until December 2020. Details of the extension and amendment to the procedure for providing facilities consist of Income Tax Article 21 DTP incentives given to employees in companies engaged in one of 1,189 specific industrial fields.

The company obtained the Import Export Destination Facility (KITE) facility, and the company was in a bonded zone. This means that employees with NPWP and gross income are fixed and annualized no more than Rp. 200 million in these sectors will get additional income in the form of tax that is not deducted.

Meanwhile, if WP has a branch, then the notification of the utilization of Income Tax Article 21 is sufficiently delivered by the central WP and applies to all branches. For incentive facilities for MSMEs, namely the final 0.5 percent income tax rate borne by the government, WP does not need to make a tax payment.

Not only that, tax cutters or tax collectors also do not cut or collect taxes when making payments to SMEs. For incentives for exemption from income tax Article 22 Imports are given to WP operating in one of 721 certain industrial fields, KITE companies, and companies in bonded zones.

For incentives to reduce income tax article 25 by 30 percent is given to WP operating in one of the 1,013 specific industry sectors, KITE companies and companies in bonded zones. The incentive for VAT restitution is accelerated to the maximum amount of overpayment of Rp. 5 billion given to WP operating in one of 716 specific industry sectors, KITE companies, companies in bonded zones, and determined as low risk PKP.

The incentives are given without the requirement to carry out certain activities such as export of taxable goods or services, surrender to VAT collectors, and surrenders that are not collected on VAT.

All of the above facilities are obtained by giving notice or getting a statement through www.pajak.go.id.

Source: https://bit.ly/2DWPBD0