Extended Tax Incentives for Taxpayers Affected by Covid-19

s B. Bawono Kristiaji
s Awwaliatul Mukarromah
By B. Bawono Kristiaji, Awwaliatul Mukarromah
B. Bawono Kristiaji
Awwaliatul Mukarromah
The government has extended the period of tax incentives for taxpayers affected by the Covid-19 pandemic until December 2021.
 
The extension of the tax incentive period is outlined in the Minister of Finance Regulation No. 82/PMK.03/2021 concerning Amendments to the Regulation of the Minister of Finance Regulation No. 9/PMK.03/2021 concerning Tax Incentives for Taxpayers Affected by the 2019 Corona Virus Disease Pandemic (MoF Reg. 82/2021).
 
Through MoF Reg. 82/2021, the government extends the granting of Article 21 borne by the government (Ditanggung Pemerintah/DTP) incentives, MSME final income tax, final income tax on construction services for taxpayers constituting recipients of the Acceleration Program for Irrigation Water Use (Program Percepatan Peningkatan Tata Guna Air Irigasi/P3-TGAI), Article 25 income tax installment reduction incentives, and accelerated VAT refunds.
 
The above incentives are extended until the December 2021 tax period. Import Article 22 Income Tax exemption incentives, on the other hand, are extended until 31 December 2021.
 
The extension of the incentive period is only valid for the following employers and/or taxpayers:
  1. Article 21 Income Tax DTP incentives apply to taxpayers with a business classification (Klasifikasi Lapangan Usaha/KLU) listed in the appendix. Based on the appendix of MoF Reg. 82/2021, 1,189 KLU are currently entitled to Article 21 Income Tax DTP incentives. The number of KLU remain the same as the former provisions;
  2. import Article 22 Income Tax exemption incentives apply to taxpayers covered in 132 KLU as outlined in the appendix. The number of KLU decreases compared to the previous provisions of 730 KLU;
  3. Article 25 income tax installment reduction incentives are now granted to taxpayers in 216 KLU as listed in the appendix. The number of KLU is below the previous 1,018 KLU;
  4. accelerated VAT refund incentives apply to taxpayers covered in 132 KLU as listed in the appendix. The number of KLU is lower than the previous provisions of 725 KLU;
  5. MSME final income tax incentives are intended for taxpayers with a certain gross turnover as per the provisions referred to under Government Regulation no. 23 of 2018; and/or
  6. final income tax incentives on construction services are intended for taxpayers who receive P3-TGAI. The P3-TGAI constitutes a program to repair, rehabilitate, or improve irrigation networks based on the participation of the farming community carried out by the Water User Farmer Association (Perkumpulan Petani Pemakai Air/P3A), Federation of Water User Farmer Associations (Gabungan Perkumpulan Petani Pemakai Air/GP3A), or Water User Farmer Central  Association (Induk Perkumpulan Petani Pemakai Air/IP3A).
Through MoF Reg. 82/2021, the government states that employers and/or taxpayers that have submitted a notification on the use of tax incentives based on MoF Reg. 9/2021 on incentives of Article 21 Income Tax DTP and/or a reduction in the amount of Article 25 Income Tax installments must resubmit the notification to take advantage of the tax incentives. The notification is prepared according to the sample form in the appendix of MoF Reg. 82/2021 and sent through the www.pajak.go.id webpage.
 
Taxpayers who have applied for Certificate of Import Article 22 Income Tax Exemption based on MoF Reg. 9/2021 must resubmit the application to take advantage of the Import Article 22 Income Tax exemption incentives. The application is submitted using the form outlined in the appendix of MoF Reg. 82/2021 and sent through www.pajak.go.id webpage.
 
Taking effect as of 1 July 2021, this regulation stipulates that employers and/or taxpayers may take advantage of the Article 21 Income Tax DTP incentives and/or Article 25 Income Tax installments reduction incentives from the July 2021 tax period by submitting a notification until 15 August 2021.
 
On another note, employers, taxpayers, and/or tax withholders may submit a correction of the realization report of Article 21 Income Tax DTP, final MSME Income Tax DTP, and/or final Income Tax on construction services, for the January 2021 tax period to the June 2021 tax period no later than 31 October 2021.