New MoF Regulation Published! Article 25 Income Tax Installment Discount Increases to 50%

JAKARTA, DDTCNews – The government has officially increased the income tax installment discount (PPh) Article 25 from 30% to 50%.

This was conveyed by the Directorate General of Taxes (DJP) in the Press Release Number: SP-37/2020 entitled “Article 25 Income Tax Installment Discounts Increase to 50 Percent”. The official statement was published this afternoon, Saturday (22/8/2020).

The DGT said that taxpayers engaged in 1,013 certain business fields, companies that obtain import facilities for export purposes, as well as companies in bonded zones are entitled to additional Article 25 Income Tax installment deductions.

“From the previous 30% reduction from the amount of installments that should have been owed to a reduction of 50%,” said the official statement of the DGT.

Just like other tax stimuli, DGT continued, the procedure for obtaining this tax stimulus is very simple. Taxpayers only need to submit online notifications through the DGT website (www.pajak.go.id).

The authorities said the tax installment relief for all taxpayers was given due to the current economic conditions, particularly the low level of production and sales of the business world.

“The reduction in tax installments is valid until the tax period of December 2020,” added the DGT. See also the article ‘Director General of Taxes: 50% Discount for Installments of Income Tax Article 25 Effective July 2020’.

Complete regulations, including details of industries that are entitled to the facility, examples of calculation, and the format of the facility utilization realization report can be seen in the Minister of Finance Regulation Number 110 / PMK.03 / 2020 which took effect on August 14, 2020. (kaw)

 

Source: DDTC News

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