Jakarta, CNN Indonesia – The government bears Income Tax (PPh) Article 21 for employees operating in one of the 1,062 specific industrial fields, for companies that obtain export-import facilities (KITE), and for companies in bonded zones. This was done as an incentive for taxpayers in the midst of the corona virus outbreak.
The provision of the incentives is regulated in Minister of Finance Regulation (PMK) No. 44 of 2020 regarding Tax Incentives for Taxpayers Affected by Pandemic Corona Virus Disease 2019. This regulation was signed by Minister of Finance Sri Mulyani Indrawati on 27 April 2020.
Some industries that received the incentives include the footwear industry for daily use, the cement industry, the electrical equipment industry, and the food and processed food industry. According to the regulation, the exemption is valid for six months starting April 2020.
“Article 21 Income Tax borne by the Government as referred to in paragraph (2) is given from the April 2020 Tax Period to the September 2020 Tax Period,” wrote Article 2 paragraph 9 of PMK 44/2020, quoted Monday (4/5).
The Director of Counseling, Services, and Public Relations of the Directorate General of Tax Hestu Yoga Saksama revealed that the exemption was previously only granted to 440 industry and KITE companies.
He also explained that the exemption of PPh 21 was given to employees who received a fixed and regular gross income that was no more than Rp. 200 million per year or around Rp. 16.6 million per month.
“Employers who get this facility are required to submit monthly reports on the realization of Article 21 DTP PPh,” he explained in a separate official statement.
In addition to exempting PPh 21 for employees, the company also poured four other tax incentives. The incentive is in the form of exemption from import tax article 22 for import of taxpayers engaged in one of 431 certain industrial fields, in KITE companies, and in companies in bonded zones.
Then, the reduction of Article 25 Income Tax by 30 percent of the installments that should be owed to taxpayers engaged in one of 846 certain industrial fields, KITE companies, and companies in bonded zones.
Then, taxpayers engaged in one of the 431 specific industry sectors, KITE companies, and companies in bonded zones, are designated as low risk taxable income (PKP) so that the restitution facility can be accelerated to a maximum amount of over Rp5 billion.
The VAT incentive is granted without the requirement to carry out certain activities such as export of taxable goods or services, surrender to VAT collectors, or surrenders that are not collected on VAT.
Finally, the government bears the final 0.5% income tax for SMEs. This means that UMKM taxpayers do not need to make tax payments and tax cutters or tax collectors do not cut or collect taxes when making payments to SMEs.
“For this reason, MSME practitioners must first obtain a PP 23 Certificate and must report the realization of the Final PPh DTP every tax period,” said the man who is familiarly called Yoga.
Source: CNN Indonesia