As of August 1, 2020, all Taxable Entrepreneurs (PKP) in Indonesia are required to use the e-Bupot 23/26 application. With this application, PKP will be facilitated in making Evidence of Withholding Income Tax Article 23/26 (hereinafter referred to as Bupot) and reporting periodic SPT PPh Article 23/26.
The making of this Bupot is a form of cutting responsibility for the deduction of Income Tax Article 23/26 that has been done. In addition to providing legal certainty to the counterparty, the validity of proof of deduction data is more guaranteed, because the Bupot’s corrections or cancellation activities will be recorded in the system.
The e-Bupot 23/26 application system itself refers to the PER-04 / PJ / 2017 regulation which legalizes the Bupot correction or cancellation mechanism. Bupot corrections are made when there is a mistake in filling out the Bupot, while Bupot cancellation occurs when a transaction cancellation occurs.
Regarding the Correction of Bupot
In the event that there is a mistake in filling the Bupot and the Directorate General of Taxes has not taken an audit action, the tax cutter can correct the Bupot. One of the conveniences in the e-Bupot 23/26 application is the “Change / Correct” menu in the Bupot PPh Article 23/26 list.
This correction can be done for any data on the Bupot except the Bupot number. This means that the number of Bupot corrections is the same as the Bupot number before being corrected. The date on the Bupot for corrections must be in accordance with the date of issuance of the Bupot for corrections, however, for the Tax Period the Tax Period for the Bupot is corrected.
Case in point: on October 5, 2020, the tax cutters corrected the Bupot for the August 2020 period. Therefore, the date of issue of the Bupot for corrections was October 5, 2020 and the tax period which was recorded was still in the period of August 2020.
In the event that the PPh Article 23/26 Periodic Tax Return has not been reported during the corrected Tax Period, the tax cutters can make data changes through the menu. The tax value deposited will follow the corrected Bupot value and must be remitted before passing the corrected Tax Period reporting limit.
If the Article 23/26 PPh reporting threshold is exceeded, the tax cut must first report the Annual Tax Return (with Bupot values that have not been corrected), then make corrections to the Bupot and correct the Tax Return for Article 23/26.
Case in point: a company issued Bupot PPh Article 23 on August 10, 2020 with a PPh of IDR 120 thousand and on September 28, 2020 it was found that the value of the income tax should be IDR 100,000. On September 28, 2020, the tax cutters have not reported the August 2020 SPT, so the system cannot make corrections to the Bupot. Tax cutters must report the August 2020 SPT and pay the PPh of IDR 120 thousand, then make corrections to the Bupot and correct the August 2020 SPT.
For the overpayment, the withholding tax can apply for overbooking in accordance with PMK-242 / PMK.03 / 2014 or can be submitted for a refund of the overpayment of taxes that should not have been owed by the withholding taxpayer according to PMK-187 / PMK.03 / 2015.
In the event that the Bupot’s correction causes the underpayment to be greater than the corrected value, the tax cutters must pay the difference to the state treasury.
If the Bupot corrections are made before the implementation of the e-Bupot 23/26 application, then the Bupot corrections following the Tax Period method are corrected. For example a Bupot that is corrected in the form of a paper document, then a Bupot is corrected in a paper form. In this case, the tax cut must attach the Bupot corrected to the corrected Bupot as an attachment to the corrective tax return.
Regarding the Cancellation of Bupot
In the event that a transaction subject to PPh Article 23/26 turns out to be canceled, a Bupot can be canceled through the “Delete / Cancel” menu in the e-Bupot 23/26 application. Cancellation Bupot numbers are the same as Bupot numbers before being canceled. The date on Bupot cancellation is the date of issuance and the Cancellation Tax Period is the same as the Period on the canceled Bupot.
In creating a Bupot for Cancellation, the withholding tax must fill in the column “Gross Income Amount” and “Withholding Income Tax” with a value of 0 (zero). Furthermore, if the tax cutters have reported the Periodic Income Tax Return of Article 23/26 on the canceled Tax Period, then they must correct the Periodic SPT.
The mechanism for correcting periodic tax returns due to Bupot cancellation is carried out following the reporting method. If the canceled Bupot still uses the manual method, the cancellation of the Bupot and the correction of the Annual Tax Return use paper documents. In this condition, the tax cutter must attach the canceled Bupot with the cancellation Bupot as an attachment to the corrected tax return in paper form.
In the event of an overpayment of tax due to the cancellation of the Bupot, the withholding tax can submit a transfer request in accordance with PMK-242 / PMK.03 / 2014 or the withholding taxpayer can file a refund of the overpayment of tax that should not have been owed according to PMK-187 / PMK.03 / 2015.
Guarantee of Legal Certainty and Data Validity
From the description above, it is known that the e-Bupot 23/26 application is an innovation of the Directorate General of Taxes in the field of technology which aims to facilitate taxpayers. With a web-based system, the administrative burden will be reduced because taxpayers do not need to print paper or install certain applications. Taxpayers can access anywhere and anytime as long as they are connected to the internet.
With a valid system of correction and / or cancellation, taxpayers who are withheld from Income Tax Article 23/26 will receive legal certainty on the status of the Bupot they receive. This is important because Bupot will be used as a tax credit in the Annual Tax Return.
This application also makes it easier for taxpayers and the Directorate General of Taxes to find out the amount of income received and the amount of income tax that has been deducted by tax cutters with reliable data. This is to avoid potential conflicts between taxpayers and tax cutters, as well as between taxpayers and tax auditors in the future.
*) This article is the author’s personal opinion and is not a reflection of the attitude of the institution where the author works