The Jokowi government has extended tax incentives until June 2021. The budget for these incentives has also been provided around Rp. 42 trillion for business actors affected by the Covid-19 pandemic. "In this case, we will also include tax incentives for the business world of around Rp. 42 trillion," said Minister of Finance Sri Mulyani Indrawati at the Mandiri Investment Forum (MIF), Wednesday (3/2). Meanwhile, if added with incentives for the health sector, the budget is much higher. Where health sector incentives are given for death benefits due to Covid-19 for health workers to incentives for hospitals. "It could even be close to Rp 62 trillion if we include tax incentives for the health sector," he explained.
The following is a list of tax incentives that will be extended to June 2021:
1. Income Tax Incentives Article 21
- Employees who work for a company that operates in one of the 1,189 specific business fields, companies that get the Facility of Import for Export Purposes (KITE), or companies in bonded zones can get an income tax incentive (PPh) article 21 borne by the government.
- This incentive is given to employees who have a NPWP and regular and regular annualized gross income of not more than IDR 200 million. The employee will receive additional income in the form of uncut tax because the government has borne his tax obligations.
- If the company has branches, it is sufficient for the central government to inform the use of PPh article 21 incentives and apply to all branches.
2. UMKM Tax Incentives
-MSME actors receive a final income tax incentive of 0.5 percent in accordance with Government Regulation Number 23 of 2018 (Final PPh PP 23) which is borne by the government. Thus, MSME taxpayers do not need to make tax deposits. Parties who transact with MSMEs also do not need to deduct or collect taxes when making payments to MSMEs.
- UMKM players who want to take advantage of this incentive do not need to submit a PP 23 statement, but simply submit a realization report every month.
3. Construction Services Final Income Tax Incentive
-Taxpayers who receive income from the construction service business in the Program for the Acceleration of Improving Irrigation Water Use (P3-TGAI) receive incentives for final PPh construction services borne by the government.
- This incentive provision is intended to support increased water supply (irrigation) as a labor-intensive project which is an important requirement for our agricultural sector.
4. Article 22 Import Income Tax Incentives
-Taxpayers engaged in one of 730 certain business fields (previously 721 business fields), KITE companies, or companies in bonded zones receive incentives to be exempt from collecting PPh article 22 on imports
5. Income Tax Installment Incentive Article 25
- Taxpayers who are engaged in one of 1,018 certain business fields (previously 1,013 business fields), KITE companies, or companies in bonded zones receive a 50 percent reduction in installments of Income Tax Article 25 of the installments that should be payable.
6. VAT incentives
- Low-risk taxable entrepreneurs (PKP) operating in one of 725 certain business fields (previously 716 business fields), KITE companies, or companies in bonded zones receive an accelerated restitution incentive to a maximum overpayment of IDR 5 billion
