The Directorate General of Taxes officially stipulates taxpayers registered at five Tax Offices (Kantor Pelayanan Pajak/KPP) in the Special Capital Region of Jakarta as income tax withholding agents required to prepare ‘unification withholding tax receipts’ and file ‘Unification Periodic Income Tax Returns’ in the form of electronic documents.

The five tax offices include Central Jakarta Medium Tax Office, South Jakarta I Medium Tax Office, Jakarta Gambir Tiga Small Tax Office, Jakarta Gambir Empat Small Tax Office, and Jakarta Kebayoran Baru Empat Small Tax Office.

This stipulation is outlined in the Director General of Taxes Decree No. KEP-20/PJ/2021 concerning the Stipulation of Taxpayers as Income Tax Withholding Agents Required to Prepare Unification Withholding Tax Receipts and File Unification Periodic Income Tax Returns (KEP-20/2021).

Taxpayers stipulated under KEP-20/2021 include taxpayers that have met the criteria as income tax withholding agents required to produce unification withholding tax receipts and file unification periodic income tax returns in the form of electronic documents. This is based on the Director General of Taxes Regulation No. PER-23/PJ/2020 concerning the Form and Procedures for the Preparation of Unification Withholding Tax Receipts and the Form, Content, Procedures for the Completion, and Filing of Unification Income Periodic Tax Returns (PER-23/PJ/2020).

Unification periodic income tax returns refer to periodic tax returns used by income tax withholding agents to report the obligation to withhold and/or collect income tax, remit income tax withholding and/or collection, and/or self-remittance of several types of income taxes in one tax period. Unification periodic income tax returns include 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.

Unification withholding tax receipts, on the other hand, refer to documents in standard format or other equivalent documents prepared by an income tax withholding agent as evidence of the income tax withholding and shows the amount of income tax that has been withheld/collected. There are two forms of unification withholding tax receipts and unification periodic income tax returns, i.e. the paper form and electronic document.

As per the provisions under PER-23/2020, unification withholding tax receipts and unification periodic income tax returns in the form of electronic documents are prepared and filed through the unification e-Bupot application. Unification withholding tax receipts and unification periodic income tax returns in the form of electronic documents are used by income tax withholders/collectors that meet the following five criteria:

i.	the amount of withheld/collected income tax is nil due to the presence of Certificate of Exemption (Surat Keterangan Bebas/SKB);
ii.	the transaction is performed with a taxpayer that has a confirmed Certificate of Gov. Reg. No. 23 of 2018;
iii.	Article 26 Income Tax is withheld based on provisions under a Tax Treaty (Persetujuan Penghindaran Pajak Berganda/P3B) which is indicated by the receipt of a Certificate of Domicile (Surat Keterangan Domisili/SKD) of a non-resident taxpayer as per statutory provisions in the taxation sector;
iv.	income tax payable is borne by the government as per statutory provisions in the taxation sector; or
v.	withheld or collected and/or self-remitted income tax is provided with income tax facilities as per statutory provisions in the taxation sector.

The obligation to prepare unification withholding tax receipts and file unification periodic income tax returns in the form of electronic documents will be implemented starting from the February 2021 tax period. However, for taxpayers that file their tax returns through the Tax Application Service Providers (Penyedia Jasa Aplikasi Perpajakan/PJAP) webpage, this obligation shall be carried out from the March 2021 tax period.

KEP-20/2021 also stipulates that in the event a taxpayer registered at a tax office as an income tax withholder/collector moves to another tax office, the obligation to prepare the unification withholding tax receipts and file unification period income tax returns in the form of electronic documents remains valid.

Moreover, KEP-20/2021 states that taxpayers stipulated through this decree are no longer obliged to produce withholding tax receipts and file periodic income tax returns based on the following two regulations:

i.	the Director General of Taxes Regulation No. PER-53/PJ/2009 concerning the Form of Periodic Article 4 Paragraph (2) Final Income Tax Returns, Periodic Article 15, Article 22, Article 23, and/or Article 26 Income Tax Returns, as well as the Withholding Tax Receipts (PER-53/2009); and
ii.	the Director General of Taxes Regulation No. PER-04/PJ/2017 concerning the Form, Contents, Procedures for the Completion and Filing of Periodic Article 23 and/or Article 26 Income Tax Returns, as well as the Form of Article 23 and/or Article 26 Withholding Tax Receipts (PER-04/2017).

This Director General of Taxes decree has come into force as of the promulgation date on 22 January 2021. In the event of any errors in this Director General of Taxes decree, they shall be corrected accordingly.

Taxpayers Obliged to Electronically Prepare Unification Withholding Tax Receipts and Unification Periodic Income Tax Returns