Summary of Regulation of the Minister of Finance No. 44 / PMK.03 / 2020

A. Criteria for Granting Income Tax (PPh 21) Borne by the Government

1.Company:

a. Has a Code of Business Classification (KLU) as listed in appendix A-PMK No.44 and has been reported in the Annual Tax Returns in 2018 or according to data in tax administration master file for new company
b. Has obtained KITE facilities (Ease of Import for Export), or
c. Has obtained a bonded zone organizer permit

2.Employee:

a. Has Tax ID (NPWP)
b. Has annual gross fixed income of not more than Rp. 200,000,000.

3. PPh 21 Borne by The Government must be paid when salaries are paid, including if the company provides PPh 21 benefits or bears PPh 21

4. PPh 21 Borne by the Government is not taxable income

5. PPh 21 Borne by the Government is applicable for April 2020 until September 2020 tax period.

B. Procedure for Obtaining PPh 21 Borne by The Government

1. The company submits to the Head of the Tax Office (KPP) where the company is registered through www.pajak.go.id with the attachment of :

a. Notification letter according to appendix C-PMK No.44
b. For the company has KITE facility, must attach letter from Decree of the Minister of Finance concerning the determination of a company that receives a KITE facility
c. For the company has bonded zone organizer permit, must attach the permit letter

2. The incentive to bear PPh 21 by the Government is effective since notification letter is submitted.

3. If the letter submission does not meet the requirements, the head of the KPP will notify that incentive is denied

C. Procedure of Reporting PPh 21 Borne by The Government

1. The company must submit a realization report of PPh 21 Borne by the Government according to the form in appendix E-PMK No.23 to the Head of the Tax Office where the company is registered

2. Making a tax payment letter (billing code) with the stamp: PPh PASAL 21 DITANGGUNG PEMERINTAH EKS PMK NOMOR 44/PMK.03/2020

3. Realization report and tax payment slip (billing code) must be submitted not later than the 20th of the following month.

Source : Peraturan Menteri Keuangan Republik Indonesia Nomor 44/PMK.03/2020 

DGT Decision No. KEP-156/PJ/2020

The DGT decided that as a result of the spread of Covid-19, the period from March 14, 2020 to April 30, 2020 has been declared as force majeure period.

The following are the relaxation provisions granted as a result of the declaration according to the DGT Decision.

Abolishment of Tax Administration Sanction for Individual Taxpayers

Individual taxpayers who fulfill their tax obligations during the force majeure period will be abolished from tax administration sanctions (i.e. late filing penalty and late payment penalty).

Individual taxpayers who have obligations to submit a report regarding participation in
tax amnesty in the form of a report on the realization of the transfer and investment in additional assets and /or reports on placement of additional assets, can submit these reports not later than April 30, 2020, without administrative sanctions.

SPT Masa

Taxpayers who submit the SPT Masa for the February 2020 Tax Period on March 21, 2020 until the date April 30, 2020 will be abolished from administrative sanctions for late submission of SPT Masa.

However, payment of income tax payable relating to the SPT Masa must be made when its due in accordance with the existing regulation.

Filings of Application for Objection,etc

To the taxpayers who are submitting applications in the form of:

a. Objection letter;
b. Reduction or elimination of second administrative sanctions; or
c. Reduction or cancellation of tax assessment letter or second tax collection Letter,

Which filing deadlines fall on dates on or between March 15, 2020 until April 30, 2020, are granted extra time for submission of application until May 31, 2020.

Ministry of Trade Regulations No.25 Year 2020

On March 16, 2020 the Ministry of Trade issued new regulations relating to submissions of companies’ annual financial statements (LKTP), replacing the previous regulation about the same subject (Kepmenperindag No. 121 Year 2002).

The new regulation emphasizes that once submitted, the financial information contained in the LKTP becomes public information. Also, submissions of private companies’ LKTP now can only be done by the companies themselves (previous regulation allows the public accounting firms to submit the LKTP on behalf of the company).

Please note that all foreign companies must submit their LKTP regardless of their total assets.

The summary of important points of this regulation is as follows:
1. Companies fulfilling one of the following criteria must submit its LKTP to the Ministry of Trade:

A. Limited liability companies:

    • Being a publicly-listed company;
    • Having the business of gathering funds from the public;
    • Issues debt instruments;
    • Having total assets of at least Rp25.000.000.000;
    • Being a debtor, whose annual financial statements are obliged by the Bank to be audited.

B. Foreign companies having domiciled and undertaking business activities in Indonesia and authorized to enter into agreements,

C. State-owned enterprises (PERSERO), public companies (PERUM) and municipal enterprises (PD).

2. LKTP consists of balance sheet and statements of income, changes in equity and cash flows, and notes to financial  statements. LKTP should be prepared based on the accounting standards issued by the applicable accounting association and must be audited by registered public accountants or state auditors.

3. LKPT must be submitted by the company through the Ministry of Trade’s SIPT portal at the latest 6 months after the end of the financial year. If the portal is not available, LKTP is submitted by way of email to the Direktorat Bina Usaha dan Pelaku Distribusi, Ministry of Trade.

4. The Ministry of Trade, through the Directorate for the Directorate General will issue a receipt (called STP-LKTP) within 7 days;

5. Once submitted, the financial information contained in the LKTP becomes public information, and can be accessible by writing to the Directorate General of the Ministry of Trade.

6. STP-LKTP can be attached as a supporting document for the Public Accounting Firm in submitting a report on business activities to the minister who carries out government affairs in the financial sector.

7. Incompliance to this regulation is subject to administrative sanctions in the form of written warnings, suspension or revocation of operational license.

Summary of Regulation of the Minister of Finance No. 23 / PMK.03 / 2020, regarding Tax Incentives for Taxpayers Affected by Corona Virus Outbreak, relating to Payroll

A. Criteria for Granting Income Tax (PPh 21) Borne by the Government

1. Company:
a. Has a Code of Business Classification (KLU) as listed in appendix A-PMK No.23 and has been reported in the Annual Tax Returns in 2018, and/orb.

b. Has obtained KITE facilities (Ease of Import for Export).

2. Employee:
a. Has Tax ID (NPWP)

b. Has annual gross fixed income of not more than Rp. 200,000,000.

3. PPh 21 Borne by The Government must be paid when salaries are paid, including if the company provides PPh 21 benefits or bears PPh 21

4. PPh 21 Borne by the Government is not taxable income

5. PPh 21 Borne by the Government is applicable for April 2020 until September 2020 tax period.

B. Procedure for Obtaining PPh 21 Borne by The Government

1. The company submits to the Head of the Tax Office (KPP) where the company is registered :
a. Notification letter according to appendix C-PMK No.23

b. For the company has KITE facility, must attach letter from Decree of the Minister of Finance concerning the determination of a company that receives a KITE facility

2. The incentive to bear PPh 21 by the Government is effective since notification letter is
submitted.

3. If the letter submission does not meet the requirements, the head of the KPP will notify that incentive is denied

C. Procedure of Reporting PPh 21 Borne by The Government

1. The company must submit a realization report of PPh 21 Borne by the Government according to the form in appendix E-PMK No.23 to the Head of the Tax Office where the company is registered

2. Making a tax payment letter (billing code) with the stamp: PPh PASAL 21 DITANGGUNG PEMERINTAH EKS PMK NOMOR 23/PMK.03/2020

3. Realization report and tax payment slip (billing code) must be submitted not later than:
a. July 20, 2020, for the April 2020 tax period to the June 2020 tax period

b. October 20 2020, for the July 2020 tax period to the September 2020 tax period.

Source : Peraturan Menteri Keuangan Republik NOMOR 23/PMK.03/2020

Nomor: SP-09/2020

Jakarta, March 15, 2020

In line with government efforts to prevent the spread of the Corona virus (COVID-19), effective from March 16 to April 5, 2020, the Tax Office’s Integrated Service Centers temporarily stop all taxation services in all Indonesia.

Taxpayers can still submit annual and periodic filings of tax returns (SPT) through the electronic or online reporting (e-filing/e-form) through www.pajak go.id or by registered mail.

To provide convenience and certainty to individual taxpayers, deadlines of tax payments and submissions of annual individual tax returns for the 2019 tax year are extended until 30 April 2020 and will not be subject to late sanctions.

Also, deadline of submissions of the monthly income tax returns for the month of February 2020, are extended until April 30, 2020 and will not be subject of any late sanctions. However, tax payment deadlines of February 2020 income taxes remain unchanged in accordance with applicable regulations.

Source : SP – 09/2020

PRESS RELEASE No. HM.4.6 / 32 / SET.M.EKON.2.3 / 03/2020

The Government Announces Second Economic Stimulus to Address the Impact of COVID-19
Jakarta, March 13, 2020

Fiscal stimulus in the context of handling COVID-19

1. Relaxation of Article 21 of Income Tax (PPh Article 21)
The employee income tax of workers’ income up to Rp200 million in the manufacturing industry for 6 months period, starting from April to September 2020, will be borne 100% by the Government.

2. Relaxation of Article 22 Import Tax (Income Tax Article 22 Import)
The Government exempted the income tax Article 22 of imports for 19 specific sectors, KITE Taxpayers, and IKM KITE Taxpayers. This exemption is given for 6 months starting from April to September 2020.

3. Relaxation of Article 25 of Income Tax (PPh Article 25)
The Government gave 30% income tax Article 25 reduction for 19 specific sectors, KITE Taxpayers, and IKM KITE Taxpayers.

4. Relaxation of Value Added Tax (VAT) refunds
The Government gave accelerated VAT refunds for 19 specific sectors, KITE Taxpayers, and IKM KITE Taxpayers. This accelerated VAT refunds are granted for 6 months, starting from April to September 2020.

There is no limit on the value of VAT refunds for exporters, while for non-exporters the VAT refunds is set at a maximum of Rp5 billion.

Source : No. HM.4.6 / 32 / SET.M.EKON.2.3 / 03/2020

Menindaklanjuti ketentuan PP Nomor 45 Tahun 2015 tentang Penyelenggaraan Program Jaminan Pensiun, dapat disampaikan hal-hal sebagai berikut :BPJS Ketenagakerjaan setiap tahun menyesuaikan besaran Upah tertinggi dengan menggunakan faktor pengali sebesar 1 (satu) ditambah tingkat pertumbuhan tahunan produk domestic bruto tahun sebelumnya (Pasal 29 ayat (3))

BPJS Ketenagakerjaan menetapkan dan mengumumkan penyesuaian batas upah tersebut paling lama 1 (satu) bulan setelah lembaga yang menyelenggarakan urusan pemerintahan di bidang statistik mengumumkan data produk domestik bruto (Pasal 29 ayat (4))

Sadan Pusat Statistik (BPS) telah mengumumkan pertumbuhan Produk Domestik Bruto (PDB) Indonesia Tahun 2019 sebesar 5,02% (Serita Resmi Statistik BPS No. 17/02/Th.XXIV tanggal 05 Februari Tahun 2020).

1. BPJS   Ketenagakerjaan   setiap  tahun   menyesuaikan   besaran   Upah  tertinggi dengan menggunakan faktor pengali sebesar  1   (satu) ditambah  tingkat pertumbuhan  tahunan  produk domestic  bruto tahun sebelumnya  (Pasal 29 ayat (3))

2. BPJS   Ketenagakerjaan   menetapkan   dan  mengumumkan   penyesuaian   batas upah  tersebut paling  lama  1    (satu)  bulan  setelah  lembaga  yang menyelenggarakan  urusan pemerintahan  di bidang statistik mengumumkan  data produk domestik bruto (Pasal 29 ayat (4))

3. Badan   Pusat   Statistik   (BPS)   telah      mengumumkan   pertumbuhan    Produk Domestik   Bruto  (PDB)  Indonesia  Tahun  2019  sebesar  5,02%  (Serita  Resmi Statistik BPS No.  17/02/Th.XXIV tanggal 05 Februari Tahun 2020).

4. Berikut adalah hasil perhitungan batas paling tinggi Upah sebagai dasar perhitungan luran JP mulai bulan Maret 2020 :

= Batas Upah Tertinggi Tahun 2019 x {1 + Tingkat Pertumbuhan Penduduk Domestik Bruto Tahun 2019}

= 8.512.400 x {1 + 5.02/100}

= 8.939.722

Dibulatkan menjadi 8.939.700

5. Bagi  Perusahaan  yang  telah  melakukan  rekonsiliasi/  siap  rekon  untuk  Bulan Maret 2020 dan belum menyesuaikan ketentuan batasan Upah Jaminan Pensiun tahun 2020 agar melakukan penyesuaian

Sumber : Surat Pemberitahuan BPJS Ketenagakerjaan No : 8/5992/022020

Good news for Indonesian workers!. At the end of 2019, the Government increased the BPJAMSOSTEK’s Protection benefits of Work Accident Security (JKK) and Death Security (JKM) programs without increasing payment of contributions.

Work Accident Security (JKK)
1. Scholarships for 2 children
For active participants who die or permanently disabled due to workplace accidents:
• Kindergarten to elementary school (equivalent), IDR 1.5 million/year/child
• Junior high school (equivalent), IDR 2 million/year/child
• High school (equivalent), IDR 3 million/year/child
• College (equivalent), IDR 12 million/year/child

Maximum Scholarship is IDR 174 million (previously IDR 12 million)

2. Cost for Accident Work Transportation
• Land transportation, maximum of IDR 5 million, previously IDR 1 million
• Water transportation, maximum of IDR 2 million, previously IDR 1.5 million
• Air transportation, maximum of IDR 10 million, previously IDR 2.5 million
3. Homecare Service
Given maximum of 1-year, maximum cost is IDR 20 million
4. Temporary Compensation for Those Who Are Not Able to Work
100% salary reimbursement for the first 12 months. Furthermore, 50% until healed (previously 100% for the first 6 months).
5. Funeral Cost
IDR 10 million (previously IDR 3 million)
6. Compensation for Permanent Disability/Death
IDR 12 million (previously IDR 4.8 million)
7. Reimbursement of Hearing Aid Cost
Maximum of IDR 2.5 million
8. Denture Replacement
Maximum of IDR 5 million (previously IDR 3 million)
9. Glasses Replacement Cost
Maximum of IDR 1 million
10. Diagnostic Checking
For completion of disease cases because of working for participants who have been proven had diseases because of working.

Death Security (JKM)
1. Scholarships for 2 children
For active participants who die with a minimum period of 3 years
• Kindergarten to elementary school (equivalent), IDR 1.5 million/year/child
• Junior high school (equivalent), IDR 2 million/year/child
• High school (equivalent), IDR 3 million/year/child
• College (equivalent), IDR 12 million/year/child

Maximum Scholarship is IDR 174 million (previously IDR 12 million)

2. Death Benefit Compensation
• Funeral cost, IDR 10 million; previously IDR 3 million
• Periodic compensation, IDR 12 million; previously IDR 4.8 million
• Death compensation, IDR 20 million; previously IDR 16.2 million

Total compensation of IDR 42 million (previously IDR 24 million)

Contributor: PT ASA Indonesia

Menindaklanjuti ketentuan Peraturan Pemerintah Nomor 45 tahun 2015 tentang Penyelenggaraan Program Jaminan Pensiun, khususnya yang berkaitan dengan besaran upah tertinggi untuk pelaporan upah tenaga kerja kepada BPJS Ketenagakerjaan dan besaran kenaikan manfaat pensiun, dapat disampaikan hal-hal sebagai berikut :

1. Berdasarkan Peraturan Pemerintah nomor 45 Tahun 2015 tentang penyelenggaraan Program Jaminan Pensiun pada 18 ayat (3) ” Besar manfaat pensiun paling sedikit dan paling banyak disesuaikan setiap tahun berdasarkan inflasi umum tahun sebelumnya”

2. Sesuai pasal 29 ayat (3) “BPJS Ketenagakerjaan setiap tahun menyesuaikan besaran upah tertinggi dengan menggunakan faktor pengali sebesar (1) ditambah tingkat pertumbuhan domestik bruto tahun sebelumnya”.

3. Sesuai Berita Resmi Badan Pusat Statistik Nomor 01/01/Th. XXII tanggal 2
Januari 2019, bahwa tingkat inflasi tahun 2018 adalah sebesar 3, 13%, sehingga ditetapkan penyesuaian batasan besaran manfaat Jaminan Pensiun berkala sebagai berikut:
a. Manfaat pensiun paling sedikit : Rp. 341.400,00
b. Manfaat pensiun paling banyak : Rp 4.095.750,00

4. Badan Pusat Statistik (BPS) telah mengumumkan pertumbuhan Prociuk Domestik Bruto (PDB) Indonesia tahun 2018 sebesar 5,17 persen (Berita Resmi Statistik BPS Nomor 15/02/Th.XXII tanggal 06 Februari 2019.

5. Berkaitan dengan hal tersebut diatas, bahwa mulai bulan Maret 2019 pelaporan upah tertinggi untuk program Jaminan Pensiun kepada BPJS Ketenagakerjaan yang sebelumnya sebesar Rp. 8.094.000,00 menjadi Rp. 8.512.400,00.

6. Untuk itu kami harapkan agar pelaporan upah tertinggi untuk program Jaminan Pensiun menjadi sebesar Rp. 8.512.400,00, sehingga tidak terdapat selisih dalam perhitungan rekonsiliasi iuran antara data dari perusahaan dengan yang dihitung oleh BPJS Ketenagakerjaan.

Sumber :

Surat Pemberitahuan BPJS Ketenagakerjaan Nomor B/1397/022018

On 3 September 2019 the Minister of Finance announced the Government’s plan to propose a number of changes to the Income Tax, Value Added Tax (VAT), and General Tax Provision laws. The process of the change of the legislation is still at an early stage and many key aspects of the proposals are still not clear. 

Key highlights of the proposed changes are:

  1. The corporate income tax rate, currently 25%, will be gradually reduced to 22% for 2021 and 2022, to 20% for 2023 and thereafter. Income tax rate for newly listed Indonesian companies will be 19% for 2021 and 2022 and 17% for 2023 and thereafter for a period of five years. After the five year period, the rate will become 20%.
  2. Dividends received by Indonesian companies and individuals from both domestic and foreign companies, if reinvested in Indonesia, will be tax exempted. Currently, Indonesian companies pay 25% corporate income tax on all foreign sourced dividends and pay the same on domestic sourced dividends when the company’s shareholding is less than 25%.
  3. The penalty for not issuing, or for the late issuance of a VAT invoice would be cut to 1% of the VAT (current rate is 2%). Interest for underpayment of tax (due to amendments and assessments) will be reduced from 2% per month to a benchmark interest rate (will be determined by the Minister of Finance on a regular basis) plus 5%, prorated on a monthly basis. A new penalty of 1% for failing to register for VAT purposes.
  4. Situations in which companies will be able to claim input VAT will be broadened, including VAT paid during pre-production periods and certain other situations.
  5. The legal and regulatory frameworks for Indonesia’s various incentives will be consolidated into one part of the law.
  6. International digital companies will be required to register for, collect and report VAT at a rate of 10%, through their representatives in Indonesia. This will be applied to international sellers, international service providers and international platform companies.
  7. Income Tax Law will be updated to allow the Indonesian Government to tax profits without physical presence in Indonesia (”significant economic presence” concept). It is not known the expected impact of this change to treaty agreements.