The DGT has issued the Director General of Taxes Regulation No. PER-23/PJ/2020 concerning the Form and Procedures for the Preparation of Unification Withholding Tax Receipt and the Form, Content, Procedures for Completing and Filing Unification Periodic Income Tax Returns (PER-23/2020).

Stipulated on 28 December 2020, the regulation has taken effect thereafter. The enactment of this regulation simultaneously revokes the Director General of Taxes Regulation No. PER-20/PJ/2019 concerning the Form, Content, Procedures for Completing and Filing Unification Periodic Income Tax Returns and the Format of Unification Withholding Tax Receipt (PER-20/2019).

The authority states that PER-20/2019 needs to be replaced to provide more convenience, legal certainty, and improve services to taxpayers in the preparation of income tax withholding receipt and filing of Unification Periodic Income Tax Returns.

Unification withholding tax receipt refers to a document in standard format or other equivalent documents, which is prepared by an income tax withholder as evidence of income tax withholding and shows the amount of income tax that has been withheld.

Unification Periodic Income Tax Returns, on the other hand, refers to the periodic tax returns used by the income tax withholder to report the obligation to withhold and/or collect income tax, the remittance of income tax withholding and/or collection, and/or self-remittance of several types of income taxes in one tax period, as per statutory provisions in the field of taxation.

Article 2 of the regulation states that an income tax withholder is required to produce unification withholding tax receipt. The tax receipt is subsequently submitted to the party that has been withheld. Next, the income tax withholder is obliged to report the taxes that have been withheld/collected to the DGT using Unification Periodic Income Tax Returns.

Unification Periodic Income Tax Return refers to a periodic tax return used by an income tax withholder to report the obligation to withhold and/or collect income tax, remit the income tax withholding and/or collection, and/or self-remit several types of income taxes in one tax period.

In further detail, Unification Periodic Income Tax Return consists of five types of Income Taxes, i.e. Article 4 paragraph (2) Income Tax, Article 15 Income Tax, Article 22 Income Tax, Article 23 Income Tax, and Article 26 Income Tax. Moreover, unification withholding tax receipt and Unification Periodic Income Tax Returns may take the form of paper forms or electronic documents that are prepared and filed through the unification e-Bupot application.

The unification withholding tax receipt and Unification Periodic Income Tax Returns in the form of paper forms are used by income tax withholders that meet two criteria. First, preparing no more than 20 unification withholding tax receipts in one tax period. Second, preparing unification withholding tax receipt with an income tax base of not more than IDR100 million for each unification withholding tax receipt within one tax period.

Conversely, unification withholding tax receipt and unification periodic tax returns in the form of electronic documents are used by income tax withholders that meet the following five criteria:

i.	producing more than 20 unification withholding tax receipts in one tax period;
ii.	there is a unification withholding tax receipt with an income tax base of more than IDR100 million in one tax period;
iii.	preparing unification withholding tax receipts for Article 4 paragraph (2) Income Tax objects on deposit/savings interest, Bank Indonesia Certificate (Sertifikat Bank Indonesia/SBI) discount, current accounts, and share sale transactions;
iv.	having submitted Electronic Periodic Tax Returns; or
v.	registered with a Tax Office within the Regional Large Tax Office, a Tax Office within the Jakarta Special Regional Tax Office, or a Medium Tax Office.

Income tax withholders required to prepare unification withholding tax receipt and Unification Periodic Income Tax Returns are income tax withholders that meet the criteria referred to in paragraph (1) or paragraph (2) of PER-23/PJ/2020 and have been stipulated by a Director General of Taxes decree.

Unification Withholding Tax Receipt and Unification Periodic Income Tax Returns