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Tax Flash July KIB Consulting 2020


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Tax Flash July KIB Consulting 2020

  1. 1. TAX FLASHKIB E-newsletter July 2020 The Covid-19 pandemic, coupled with the world geopolitical situation that took place in the second quarter of 2020 slows down the world economy. The growth of gross domestic product (GDP) of most countries in the world weakened which reflected in the decline of consumer spending. Covid-19 pandemic influences projections of economic growth and conditions of public welfare. Indonesia's economic growth in 2020 is projected to be minus (-) 0.4 percent to 1 percent. Economic recovery is still in a big uncertainty. “Economic depression cannot be cured by legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body – the producers and consumers themselves.” ~Herbert Hoover. In This Issue: • New Normal • Tax Court Service Procedures • The future of SMEs • KIB Webinar The Long Road to Economy Recovery
  2. 2. “The Pessimist Sees Difficulty In Every Opportunity. The Optimist Sees Opportunity In Every Difficulty.” – Winston Churchill Wear mask! Keep your distance. Avoid the crowd Wash your hand regularly Over the past 3 months, the Covid-19 pandemic has caused a lot of changes. To prevent further spread of the virus, people are encouraged and even forced to stay at home. Studies, office work and even worship were recommended to be done at home. Almost all countries urge their citizens not to move outside the home if there is no urgent interest. Except, indeed for those who have to go out and their activities cannot be done from home. The change in community activities has made the business world quiet, such as tourism, online transportation, retail sales and much more. However, PSBB is judged not to be applied any longer to maintain economic balance. Therefore, government implement a new system called “the new normal”. New normal is a change in behavior to carry out normal activities but adding health protocol to prevent Covid-19 transmission. It is hoped that by frequently applying new habits wherever they are, it will become easier and faster to become the individual and community norms. Thus we can work, study, worship and other activities safely, healthily and productively. However, the governor of DKI Jakarta, Mr. Anies Baswedan, has decided to implement PSBB Transition after considering there are still places in the “red zone”. Work Places Public Places - 50% proportion of employees allowed to work in the office. - Divides the work hours of employees who are in the office at least two different time groups (minimum gap of 2 hours) to control capacity when mobility comes and goes, breaks in tall buildings. - The number of participants or people must be less than 50 percent of the capacity of the place or room. - 1 meter distance between people. - Clean public places with disinfectant before and after each activity. Balance your diet Exercise regularly The New Normal
  3. 3. “It’s Not Whether You Get Knocked Down, It’s Whether You Get Up.” – Vince Lombardi This pandemic has threw a big hit to some business vectors resulting several industries experience a drastic decline. Below are some of business sectors affected by this COVID-19 outbreak: The aviation sector feels the direct impact of the COVID- 19 pandemic. Enclosed in, PT Garuda Indonesia Tbk (Persero) revealed the threat of bankruptcy has haunted the national aviation industry. While sticking to the regulation where aircraft occupancy rate is very low, a large operational cost is waiting behind it. Even if the aircraft does not take off, there are still requirements to do routine maintenance. The threat of bankruptcy that haunted the airline industry is evidenced by the bankruptcy of airlines from Thai Airways, Thailand. Source: Incessant movements of restricting activities outside caused the tourism industry to lose revenue. The tourism industry is facing the pressure of a COVID-19 pandemic as this outbreak forced business sector to close temporarily. As a result, 70% of industry players are threatened with bankruptcy or closed permanently. While unable to operate, tourism industry players must pay for various things, including employee rights. As for instance, the travel agents agreed to terminate the employment of all their contract employees, while permanent employees got reduction for their salaries.
  4. 4. “We may encounter many defeats but we must not be defeated.” – Maya Angelou Automotive manufacturers in various parts of the world were forced to close their production facilities. At the same time, demand for automotive has fallen sharply as people's purchasing power has weakened. World car manufacturers temporarily close some factories for the safety of workers, this decision was taken so that stocks do not accumulate in the middle of declining demand. Based on data from the Association of Indonesian Automotive Industries (Gaikindo), total car sales during January-March this year fell 6.9% compared to last year. The retail industry relies more on their offline selling than online selling. With the shift in patterns and behavior of public spending, the retail industry is experiencing decline. The main problem that haunts the retail industry is increasingly fierce competition, coupled with this pandemic that makes many people afraid to go to shopping. According to Deputy Chairman of the Indonesian Retail Entrepreneurs Association (Aprindo), the number of visitors coming to the store decreased by 50 percent. Some sectors are still growing, such as food and drinks, but ones declining are a lot more. Now that some stores have reopened, their operational costs are quite large compared with the number of visitors who come. Hero has closed 26 stores and cut 532 employees Source: Gaikindo
  5. 5. “We may encounter many defeats but we must not be defeated.” – Maya Angelou The construction service sector as part of economic actors, also felt a very big impact on the COVID-19 epidemic. The most pronounced impact of the spread of the corona virus is the slowing down of projects, starting with the mobilization of materials, equipment, labor and an increase in real costs coupled with the strict health protocol issued by the Ministry of PUPR in the Instruction of the Minister of Public Works and Public Housing (PUPR) Number 02 / IN / M / 2020 established on 27 March 2020. COVID-19 Effect on Construction Industry. Source: Sihombing, Lukas. (2020). Dampak Covid-19 pada Industri Konstruksi dan Tantangannya Pasca COVID-19 di Indonesia: Tinjauan dari sisi Manajemen Risiko Proyek, Program dan Portofolio. Earnings obtained by construction entrepreneurs have decreased significantly, coupled with operational and non-operational costs such as tax costs. Construction companies that have high levels of debt and low income reserves can experience liquidity crisis and smaller companies or sub-contractors to lose / go bankrupt quickly. 1. PERPRES NO. 54 YEAR 2020 Budget reallocation of Rp. 24.53 trillion 2. CABINET MEETING 14 APRIL 2020 Adjustment of the Ministries and Institutions TA Expenditures of IDR 75.63 trillion or reduced by IDR 44.58 trillion
  6. 6. “Success is not final; failure is not fatal: it is the courage to continue that counts.” – Winston Churchill TAX COURT SERVICE PROCEDURES After the tax office closed due to Covid-19 pandemic for quite some time, tax court service finally open their face-to-face services on June 15th 2020. However, not all tax services can be carried out face to face and there are still some heath protocol applied. STEPS: 1. Body Temperature <37.3oC 2. Wear mask 3. Maximum of 2 people per service user services or administrative proceedings-face 1. Shows notice / subpoenas, screenshots of RUS, or Assignment Letters for trial service users 2. Online queue evidence for users of face-to- face administration services Form can be downloaded at setpp.kemenkeu and send to: • Subject : Daftar (Banding/Gugatan)_TanggalHadir • Subject : Daftar Informasi (keperluan)_Tanggal Kedatangan_nama perusahaan/pemohon • Subject : Daftar (PK/KMPK)_TanggalRencanaHadir Schedule announcements will be posted on the setPP website 1 day before. Specifically for Appeals / Lawsuits (Counter A), if you have not yet received a schedule, please re-submit the online queue request Receipt of Appeal and / or Lawsuit which due during the prevention period as referred to in SE-11 / PP / 2020. Appeals and / or lawsuits that fall the time after the prevention period is sent by POS / registered expedition Letters related to Appeals / Lawsuits (Letter of Appeal Description (SUB) / Response Letter, Rebuttal, Additional data / supplementary data, Declaration of Revocation, Other letters) will be shipped via registered POS / expedition. Application or extension of Law Attorney Power Information about tax dispute and other general. COUNTER A COUNTER B COUNTER C SUBMISSION OF APPEAL / LAWSUIT INFORMATION SERVICES RECONSIDERATION & MEMORY REVIEW SUBMISSION
  7. 7. “Every problem is a gift—without problems we would not grow.” – Anthony Robbins The Ministry of Cooperatives and Small and Medium Enterprises stated that the spread of the corona virus or Covid-19 has significant impact on small and medium enterprises which has been the backbone of the economy. It is calculated that there are 56 percent decrement of sales. The hit has been from both supply and demand sides. Reduction of working hours as well as employees and strict health procedures combine with customer’s low power on spending has slow down the production. Instead of stepping back, SMEs should think of this pandemic as the new stepping stone to move forward. In this period, businesses should be sharp in decision making as there is the needs to adapt and reorganize their business in this disruptive era. The uncertainty in several areas of the business including finance, operations, employees, and technology makes the company need to rethink of the strategies applied to minimize current and future risks. The priority of the company is expected to be altruistic, which is to adjust to the needs of the community. SMEs should not be afraid on touching new aspect at where the demands are. SMEs are expected to adapt to the new transformation which requires using more of digital technology and less physical contact. Digital technologies will allow SMEs to reach as many potential customers and networks with a relatively low cost. The Future of SMEs
  8. 8. “Business opportunities are like buses, there’s always another one coming.” – Richard Branson On the 25th of June 2020, KIB Consulting held a virtual seminar “Strategi untuk Bertahan dan Berkembang di New Normal”. The COVID-19 pandemic, which has taken place since February 2020, has brought more uncertainty to businesses. This uncertainty affects the economic, physical and mental health of the people. As a result of the pandemic felt by many parties, including PT. Pan Brothers Tbk. However, the extraordinary enthusiasm applied by management in the midst of implementing strict Health protocols, in fact makes the problem an opportunity for the company. One of the breakthroughs made by PT Pan Brothers Tbk. was product diversification in March 2020 when they started producing personal protective equipment (PPE), for domestic and export usage. KIB WEBINAR “Strategi untuk Bertahan dan Berkembang di New Normal”.
  9. 9. “There’s no shortage of remarkable ideas, what’s missing is the will to execute them.” – Seth Godin From what was explained by Mrs. Anne Patricia Sutanto, the Vice CEO of PT Pan Brothers Tbk and interactive dialogue with participants, we can draw conclusions: 1. Think optimistically. Opportunities are always there, including in every difficult situations. Companies can interpret opportunities into appropriate strategies to bring the company to continue to grow 2. Hard work and discipline improve our work, all at every level of management and workers. 3. Communication with the authorities / government, needs to be done through appropriate communication channels, for example through existing business associations, so as to overcome the problems of the business world that occur, can be used to enter interests and find a way through agreements that may be made / revised. 4. Use a third party that is asked to find a way out of certain problems, may be needed in the business world. Contact Us Phone: (62-21) 2929 5870-73 Bambang B. Suwarso bambang.suwarso@kib- Rachmat Kurniawan rachmat@kib- Yosefine Amelia yosefine@kib- Raden Roro Ratna Indah Wulandari wulan@kib- Addresses: North Jakarta -14450 The Koppel Building Suite IB. Jalan Pluit Selatan Raya no. 10 Gold Coast Tower Eiffel Unit N Pantai Indah Kapuk Disclaimer: The facts and opinions stated or expressed in this publication are for information purposes only, and are not necessary and/or must not be relied upon as being to those of the publisher or of the Institutions for which the contributing authors work. Although every part of content has been taken to ensure the accuracy of the information contained within this publication, it should not be by any person relied upon as the basis for taking any action or making any decision. KIB Consulting and its representative, cannot be held liable or otherwise be responsible in any way for any advice, action taken or decision made on the basis of the facts, surveys, and opinions stated or expressed within this publication.
  10. 10. “There’s no shortage of remarkable ideas, what’s missing is the will to execute them.” – Seth Godin PT. Konsultan Indonesia Bersama is a boutique company serving Finance, Business, Accounting and Tax Advisory since 2008. KIB has been immensely successful in creating a local business network of small-medium-and-big businesses. We highly adept intelligent workforce that can help a company achieve their mission-critical projects and goals. Keeping pace with projects and being on the look-out for every opportunity to grow with our clients has become our mission statement. KIB commits to bring the best suited services for our clients and stakeholders. All of our resources are multifaceted and come with years of commended performance. Project completion rate of our consultants is 97%, 3% is attributed to unforeseen situations like changes of clients’ decision issues, natural disaster, etc. We appreciate the experience that our team bring and together we thrive to grow and prosper together. About Us Tax and Custom Consulting Diagnostic Review Planning Compliance Dispute Audit Objection Appeal Tax ruling Tax Conciliation Business Consulting Business Matching Investigation Merger & Acquisition Financial Valuation Due diligence: Operational & Legal Accounting & Tax Outstanding debt collection Business & Asset Appraisal Transfer Pricing Documentation (TP-Doc) Company Setup & Liquidation Copyrights & Patent Dispute Copyrights & Patent Registration Accounting and Assurance Independent Audit Actuarial report (PSAK 24) Accounting SaaS Migration with (Mekari)