On July 1, 2021, the Minister of Finance (MoF) issued Regulation No. 82/PMK.03/2021 (PMK-82) as an amendment of MoF Regulation No.9/PMK.03/2021 (PMK-9). PMK-82 extends the tax incentives that were previously provided under PMK-9 up to December 2021.
The incentives provided under this PMK-82 remain the same with what has been provided earlier by the Government. However, there is a significant reduction in the number of business classifications (Klasifikasi Lapangan Usaha/KLUs) that can enjoy these incentives which are as follows:
In order to utilise the above incentives in July-Dec 2021, the taxpayer is required to re-apply for the incentives and/or for the exemption letter (Surat Keterangan Bebas/SKB) under PMK-82 even though the taxpayer has utilised similar incentives in Jan –June 2021. Especially for Art 21. EIT, Art. 22 Income Tax and Art. 25 Income Tax incentives, it should be submitted at the latest by Aug 15, 2021 if the taxpayer intended to utilise these tax incentives starting from July 2021 period.
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.
In addition, for taxpayers who have submitted the realisation report on utilisation of the Art. 21 EIT, 0.5% final tax and final income tax for construction incentives in Jan-June 2021, are allowed to revise the realisation report at the latest by Oct 31, 2021.
If you have any further queries or require further guidance in relation to the above, please do not hesitate to contact us.