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. 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