JAKARTA - The Ministry of Finance has announced for tax incentives for businesses affected by the coronavirus (Covid-19) pandemic. The incentives, as stated in Minister of Finance's Regulation No. 23/2020, are:
First,an incentive for Article 21 Income Tax for employers classified as one of the 440 eligible businesses and are an Ease of Imports for Exports of Goods (KITE) company. Through this incentive, the government will guarantee the Article 21 Income Tax of employees with a fixed gross income of no more than Rp 200 million per annum. The incentive is valid from the April 2020 tax period to September 2020.
Second,an incentive for Article 22 Import Income Tax collected by the Foreign Exchange Bank or the Directorate-General of Customs when a business engages in import activities. Businesses exempted from the tax are those that are eligible according to the classification code and have been determined as KITE companies. The incentive is valid from the issuance of the Certificate of Exemption until September 30, 2020.
Third, a 30% reduction of installments in Article 25 Income Tax. The reduction will apply after a business submits a written report on the reduction to the Tax Service Office where the business is registered. The incentive is valid until the September 2020 tax period.
Fourth, a VAT incentive for businesses that are eligible according to the classification code and have been determined as KITE companies. Businesses that receive this incentive are entitled to tax overpayment return as low-risk taxpayers. The incentive is valid until the September 2020 tax period. (MS)