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

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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