Tax Incentives for Taxpayers Affected by Corona Virus Outbreak, relating to Payroll

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/or
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

Limitation of Taxation Services for Prevention of Spreading of Corona Virus (Covid-19)

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

The Government Announces Second Economic Stimulus to Address the Impact of COVID-19

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

Batasan Upah Jaminan Pensiun Tahun 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

Government Announces Tax Reform Plan

BKPM and Kemenhumkam Signed MOU

Jimmy Budhi & Rekan Provides Financial Audit Services

Since 2003 Jimmy Budhi & Rekan has been providing financial audit services for entities in Indonesia. Financial audit refers to audit of entity’s financial statements by independent auditors where audit opinion will be provided on those financial statements. It is normally carried out to obtain reasonable assurance about whether the financial statements are free from material misstatement and whether they are prepared in accordance with generally accepted accounting principles in Indonesia (Indonesian GAAP).

Currently, the Indonesian GAAP constitutes Indonesian Financial Accounting Standard (SAK), Accounting Standards for Non-public Accountable Entities (SAK ETAP), Accounting Standards for Micro, Small and Medium Size Entities, and Accounting Standards for Standar Akuntansi Keuangan Entitas Mikro Kecil dan Menengah (SAK EMKM), and Syariah Accounting Standards (SAK Syariah).

Our audit will be conducted in accordance with the standards established by the Indonesian Institute of Certified Public Accountants (IAPI), which may include examining, on a test basis, evidence supporting the amounts and disclosures stated in the financial statements prepared by the management, evaluating the appropriateness of accounting policies and estimates used, as well as evaluating the overall presentation of the financial statements is in accordance with SAK, SAK ETAP, SAK EMKM, or SAK Syariah.

We have served clients engaged in various industries, including financial, mining, hotel & hospitality, IT start ups, real estates, and many others.

New Regulations: Value Added Tax on Exported Services

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