With regards with the Super Tax Deductible incentive, Minister of Finance (MoF) has issued Regulation No. 128/PMK.010/2019 (MoF-128) relating to deduction facility to gross revenue for Organizations providing work practice, internship and/or learning activities in order to develop human resources based on certain competence which entered into force as of 9 September 2019.
Based on MoF-128, taxpayer can be granted to deduct its gross revenue with the maximum of 200% from expenses related to the activities of work practice, internship and/or learning activities. The 200% deduction as mentioned above consist of:
Taxpayer will be able to utilize the additional deduction as mentioned in point 2 above if they meet the requirements as below:
Costs allocated for work practice, internship and/or learning activities in order to develop human resources based on certain competence which is entitled to the super tax deduction facility, includes:
Please be informed that honorarium or similar payments, which are provided to participants in work practice and/or internship who are:
Owner, commissioner, director and/or management of the Taxpayer shall not be entitled for the additional deduction.
Additional 100% deduction facility can be utilized as long as it does not cause fiscal loss for the relevant year. In case where the additional 100% deduction will cause a fiscal loss position, the taxpayer will only be able to utilize some portion of the additional deduction and end up with zero fiscal profit/loss.
To obtain additional deduction facility, the taxpayer shall submit notification through the OSS system by attaching 2 documents below before the activities is started:
In case there is a problem with the OSS system, manual submission can be done via the Regional Tax Office.
Taxpayer who has utilized this deduction facility is required to submit reports on the costs of work practice, internship and/or learning activities in order to develop human resources based on certain competence on an annual basis to the Director General of Tax through the Head of the Tax Office where the taxpayer is registered at the latest along with the submission of the Annual Corporate Income Tax Return for the relevant fiscal year.
In addition, this PMK-128 also provides the list of certain competences which are entitled for this facility, further requirement on the activities and its participants and detail implementation on the facility.