CONCERNING
 

BY THE GRACE OF ALMIGHTY GOD
THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

 

 

 

a.

that to provide convenience in the submission of the list of Taxpayers that fulfil certain requirements and provide more legal certainty for the application of the reduction of corporate Income Tax rates in respect of the promulgation of Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations, it is necessary to adjust the provisions on the format and procedures for the submission of the report and list of Taxpayers in the context of the fulfilment of the requirements for the Income Tax rate reduction for resident corporate Taxpayers in the form of public companies;

b.

that the Minister of Finance Regulation Number 123/PMK.03/2020 concerning the Format and Procedures for the Submission of the Report and List of Taxpayers in the Context of the Fulfilment of the Requirements for the Income Tax Rate Reduction for Resident Corporate Taxpayers in the Form of Public Companies has not accommodated the need for adjustments to format and procedures for the submission of the report and list of Taxpayers in the context of the fulfilment of the requirements for the Income Tax rate reduction for resident corporate Taxpayers in the form of Public Companies, thereby, needs to be replaced;

c.

that based on the considerations referred to in letter a and letter b as well as to implement the provisions under Article 68 of Government Regulation Number 55 of 2022 concerning Adjustments to the Regulation in the Field of Income Taxes, it is necessary to enact a Minister of Finance Regulation concerning the Format and Procedures for the Submission of the Report and List of Taxpayers in the Context of the Fulfillment of the Requirements for the Income Tax Rate Reduction for Resident Corporate Taxpayers in the Form of Public Companies;

 

 

 

1.

Article 17 paragraph (3) of the 1945 Constitution of the Republic of Indonesia;

2.

Law Number 7 of 1983 concerning Income Taxes (State Gazette of the Republic of Indonesia of 1983 Number 50, Supplement to the State Gazette of the Republic of Indonesia Number 3263) as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations (State Gazette of the Republic of Indonesia of 2021 Number 246, Supplement to the State Gazette of the Republic of Indonesia Number 6736);

3.

Law Number 39 of 2008 concerning State Ministries (State Gazette of the Republic of Indonesia of 2008 Number 166, Supplement to the State Gazette of the Republic of Indonesia Number 4916);

4.

Government Regulation Number 55 of 2022 concerning Adjustments to the Regulation in the Field of Income Taxes (State Gazette of the Republic of Indonesia of 2022 Number 231, Supplement to the State Gazette of the Republic of Indonesia Number 6836);

5.

Presidential Regulation Number 57 of 2020 concerning the Ministry of Finance (State Gazette of the Republic of Indonesia of 2020 Number 98);

6.

Minister of Finance Regulation Number 118/PMK.01/2021 concerning the Organisation and Work Procedures of the Ministry of Finance (Official Gazette of the Republic of Indonesia of 2021 Number 1031) as amended by the Minister of Finance Regulation Number 141/PMK.01/2022 concerning the Amendment to the Minister of Finance Regulation Number 118/PMK.01/2021 concerning the Organisation and Work Procedures of the Ministry of Finance (Official Gazette of the Republic of Indonesia of 2022 Number 954);

 

 

 

MINISTER OF FINANCE REGULATION CONCERNING THE FORMAT AND PROCEDURES FOR THE SUBMISSION OF THE REPORT AND LIST OF TAXPAYERS IN THE CONTEXT OF THE FULFILMENT OF THE REQUIREMENTS FOR THE INCOME TAX RATE REDUCTION FOR RESIDENT CORPORATE TAXPAYERS IN THE FORM OF PUBLIC COMPANIES.

 

 

 

Referred to herein this Ministerial Regulation:

1.

Taxpayer is any individual or entity, comprising a taxpayer, a withholding agent and a collecting agent having tax rights and obligations pursuant to statutory tax provisions.

2.

Public Company is a public company or company conducting a public offering of shares, pursuant to statutory provisions in the capital market sector.

3.

Public Company Taxpayer is a resident corporate Taxpayer in the form of a Public Company.

4.

Parties are individuals or entities.

5.

Taxpayer Identification Number is a number issued to Taxpayers as a means of tax administration that is used as a personal identity or Taxpayer identity in conducting their tax rights and obligations.

6.

Tax Year is a period of 1 (one) calendar year unless a Taxpayer adopts an accounting year that is different from the calendar year.

7.

Income Tax is income tax referred to in the Income Tax Law.

8.

Annual Income Tax Return is the Income Tax Return for a Tax Year or a fraction of a Tax Year.

9.

Securities Administration Bureau is a party that based on a contract with the issuer and/or securities issuer, registers the ownership of securities and distribution of rights related to securities pursuant to statutory provisions in the capital market sector.

10.

Minister is the minister who administers governmental affairs in the field of state finances.

 

 

 

The Income Tax rates applied to taxable income for resident corporate Taxpayers and permanent establishments amount to:

a.

22% (twenty-two per cent), taking effect in the 2020 Tax Year and the 2021 Tax Year; and

b.

22% (twenty two-per cent), taking effect as of the 2022 Tax Year, pursuant to the provisions under Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations.

 

 

 

(1)

Resident corporate Taxpayer referred to in Article 2:

 

a.

in the form of Public Companies;

 

b.

with a total number of paid-up shares traded on the stock exchange in Indonesia of a minimum of 40% (forty per cent); and

 

c.

that fulfil certain requirements,

 

are eligible for a 3% (three per cent) lower rate than the rates referred to in Article 2.

(2)

Certain requirements referred to in paragraph (1) subparagraph c include:

 

a.

the shares referred to in paragraph (1) subparagraph b must be held by a minimum of 300 (three hundred) Parties;

 

b.

each Party referred to in subparagraph a may only hold shares of less than 5% (five per cent) of the total issued and fully paid shares;

 

c.

the provisions referred to in paragraph (1) subparagraph b as well as in subparagraph a and subparagraph b must be fulfilled within a minimum period of 183 (one hundred and eighty-three) calendar days within a period of 1 (one) Tax Year; and

 

d.

the requirements referred to in paragraph (1) subparagraph b as well as in subparagraph a, subparagraph b and subparagraph c are fulfilled by Public Company Taxpayers by submitting a report to the Directorate General of Taxes.

(3)

The Parties referred to in paragraph (2) subparagraph a and subparagraph b exclude:

 

a.

Public Company Taxpayers that buy back their shares; and/or

 

b.

that have a special relationship as stipulated in the Income Tax Law with the Public Company Taxpayers.

(4)

The special relationship referred to in paragraph (3) subparagraph b for Public Company Taxpayers includes:

 

a.

controlling shareholders; and/or

 

b.

major shareholders,

 

stipulated under statutory provisions in the capital market sector.

(5)

Controlling shareholders referred to in paragraph (4) subparagraph a are Parties having direct or indirect control over Public Company Taxpayers as stipulated under the Financial Services Authority Regulations in the capital market sector.

(6)

The Financial Services Authority Regulations in the capital market sector referred to in paragraph (5) include regulations stipulating:

 

a.

the acquisition of Public Companies; and/or

 

b.

the Parties with a control relationship.

(7)

The main shareholders referred to in paragraph (4) subparagraph b are Parties that, either directly or indirectly, hold a minimum of 20% (twenty per cent) of the voting rights of all shares with voting rights issued by a company or a lower number as determined by the Financial Services Authority.

 

 

 

(1)

If a resident corporate Taxpayer does not fulfil the provisions referred to in Article 3, Income Tax payable is calculated using the Income Tax rates referred to in Article 2.

(2)

Income Tax payable is calculated using the Income Tax rates referred to in paragraph (1) pursuant to statutory provisions.

 

 

 

(1)

The format of the report referred to in Article 3 paragraph (2) subparagraph d consists of:

 

a.

the monthly report; and

 

b.

the report on related shareholding for major shareholders and controlling shareholders.

(2)

The monthly report referred to in paragraph (1) subparagraph a is:

 

a.

the monthly report on shareholding of issuers or public companies and the recapitulation that has been reported from the Securities Administration Bureau; or

 

b.

the monthly report on shareholding of the issuers or public companies for the issuers and/or public companies that self-administer securities,

 

stipulated under statutory provisions in the capital market sector stipulating the report from the securities administration bureaus or issuers and public companies that self-administer securities.

(3)

The monthly report referred to in paragraph (1) subparagraph a is prepared for each Tax Year by including the Taxpayers’ names, Taxpayer Identification Numbers, Tax Year and stating the fulfilment of the requirements referred to in Article 3.

(4)

The format of the report on related shareholding referred to in paragraph (1) subparagraph b at least contains:

 

a.

the Taxpayers’ names;

 

b.

Taxpayer Identification Numbers;

 

c.

the Tax Year;

 

d.

the names of the shareholders related with the Taxpayers;

 

e.

the Taxpayer Identification Numbers of the shareholders related with the Taxpayers;

 

f.

the special relationship of the shareholders with the Taxpayers;

 

g.

the type of control over the Taxpayers;

 

h.

the number of shares held by the related parties; and

 

i.

the per centage of shareholding held by the related parties.

(5)

The format of the report on related shareholding referred to in paragraph (4) uses the sample format listed in Appendix letter A which constitutes an integral part of this Ministerial Regulation.

 

 

 

Taxpayers submit the report referred to in Article 5 paragraph (1) by attaching the report as part of the Annual Income Tax Return for each Tax Year.

 

 

 

If the monthly report submitted by the Securities Administration Bureau does not fulfil the provisions referred to in Article 5 paragraph (3), the Taxpayers shall self-submit the monthly report using the sample format listed in Appendix letter B which constitutes an integral part of this Ministerial Regulation.

 

 

 

(1)

The Chairperson of the Board of Commissioners of the Financial Services Authority or the appointed official submits the list of Taxpayers that fulfil the provisions referred to in Article 3 paragraph (2) and paragraph (3) subparagraph a to the Minister through the Director General of Taxes.

(2)

The list of Taxpayers referred to in paragraph (1) at least contains:

 

a.

the Tax Year;

 

b.

the names of the Public Company Taxpayers;

 

c.

the Taxpayer Identification Numbers of the Public Companies;

 

d.

the name of the Securities Administration Bureau;

 

e.

the Taxpayer Identification Number of the Securities Administration Bureau;

 

f.

the number of Parties holding shares of less than 5% (five per cent);

 

g.

the per centage of shareholding of each Party holding shares of less than 5% (five per cent); and

 

h.

the number of days in one Tax Year that fulfil the requirements.

(3)

The list of Taxpayers referred to in paragraph (1) uses the sample format listed in Appendix letter C which constitutes an integral part of this Ministerial Regulation.

 

 

 

(1)

The list of Taxpayers referred to in Article 8 paragraph (1) is submitted electronically through an application or system determined and/or provided by the Directorate General of Taxes.

(2)

If the application or system referred to in paragraph (1) is not yet available, the Chairperson of the Board of Commissioners of the Financial Services Authority or an appointed official may submit the list of Taxpayers in writing to the Minister through the Director General of Taxes.

(3)

The list of Taxpayers referred to in paragraph (1) shall be submitted no later than the end of the month after the end of the Tax Year concerned.

 

 

 

When this Ministerial Regulation comes into force, the Minister of Finance Regulation Number 123/PMK.03/2020 concerning the Format and Procedures for the Submission of the Report and List of Taxpayers in the Context of the Fulfilment of the Requirements for the Income Tax Rate Reduction for Resident Corporate Taxpayers in the Form of Public Companies (Official Gazette of the Republic of Indonesia of 2020 Number 988), is revoked and declared invalid.

 

 

 

This Ministerial Regulation shall come into force on the date of promulgation.

 

 

 

For public cognisance, this Ministerial Regulation shall be promulgated by placement in the Official Gazette of the Republic of Indonesia.

 

 

 

Enacted in Jakarta
on 11 April 2023
MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,
signed
SRI MULYANI INDRAWATI

Promulgated in Jakarta
on 13 April 2023
DIRECTOR GENERAL OF LEGISLATION  

MINISTRY OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA,
signed
ASEP N. MULYANA

OFFICIAL GAZETTE OF THE REPUBLIC OF INDONESIA OF 2023 NUMBER 332