On February 1, 2021, the Minister of Finance (MoF) issued Regulation No. 9/PMK.03/2021 (PMK-9). PMK-9 extends the tax incentives that were previously provided under MoF Regulation No.110/PMK.03/2020 (PMK-110) up to June 2021.
The incentives provided under this PMK-9 remain the same with what has been provided by the Government in 2020 which are as follows:
Please note that the KLU refers to the KLU number stated on the submitted 2019 CITR or based on the tax office administration’s Master File.
In order to utilise the above incentives in 2021, the taxpayer is required to re-apply for the incentives and/or for the exemption letter (Surat Keterangan Bebas/SKB) under PMK-9 even though the taxpayer has utilised similar incentives in 2020, especially for Art 21. EIT, Art. 22 Income Tax and Art. 25 Income Tax incentives. For taxpayers who want to utilise the Art. 21 EIT and Art 25. Income Tax incentives starting from January 2021 period, they must submit the notification at the latest by February 15, 2021.
Similar with the previous regulations, taxpayers who utilises these tax incentives (other than the VAT refund incentive) must prepare realisation report on a monthly basis which is required to be submitted at the latest by the 20th of the following month. For Art. 21 EIT and 0.5% final tax incentives, the taxpayer can revise their monthly realisation report at the latest by the end of the following month after the realisation report submission. Specifically for the Art. 21 EIT and 0.5% final tax incentives, if a taxpayer fails to submit the monthly realisation report, such taxpayers will not be entitled to utilise these incentives for that particular period.
For taxpayers who have been granted the Art. 25 tax incentive under PMK-110, the amount of Art. 25 instalments in 2021 for the months prior to the submission of 2020 CITR and prior to the CITR submission deadline will be the same with the amount of Art. 25 instalments for the December 2020 period after taking into account the discount based on the Art. 25 incentive and will be effective from:
Further to the above, for taxpayers who have utilised the Art. 21 EIT and 0.5% final tax incentives in 2020 but have not submitted the realisation report, they will be able to submit the realisation report at the latest by February 28, 2021.
In addition, PMK-9 also states clearly that the DGT will perform guidance, verification, supervision and/or compliance testing activities on taxpayers who utilise these tax incentives.
If you have any further queries or require further guidance in relation to the above, please do not hesitate to contact us.