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

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Summary of Regulation of the Minister of Finance No. 23 / 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.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