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Tax flash sept 2020

Tax Flash KIB Consulting Sep 2020

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Tax flash sept 2020

  1. 1. TAX FLASHKIB E-newsletter September 2020 Finance Minister, Sri Mulyani Indrawati, stated that Indonesia is entering the abyss of recession after the prediction that Indonesia's economic growth in the third quarter would still be negative in the range of minus 1.7 percent to minus 0.6 percent. In detail, until the end of August 2020, the state revenue was recorded at Rp 1,034.1 trillion. Compared to the realization in the same period last year, which was IDR 1,190.2 trillion, our economy growth are contracted by 13.1 percent. Entering into a recession period certainly has an impact on the economy, which indirectly also affects the community, ranging from increasing unemployment due to mass layoffs to low inflation due to the loss of people's purchasing power. Moreover, cases of the spread of Covid-19 continue to rise until now. “I wish there was an easy solution to these issues but there isn’t. My ask is to do the best you can. I also recommend that you not fall into the temptation of having every waking hour be a work from home hour just because it can be.” Sam King - CEO of VeraCode In This Issue: - Second Wave of Large Scale Social Restrictions - This month business - E-Bukpot 23 - E-Faktur 3.0 - Proposing Changes in Tax Regulation for Certain Industry INDONESIA ECONOMY ENTERING RECESSION ZONE
  2. 2. SECOND WAVE OF LARGE SCALE SOCIAL RESTRICTIONS Jakarta, September 13, 2020, Anies Baswedan, the governor of DKI Jakarta announced to tighten PSBB (Large-Scale Social Restrictions) for two weeks starting Monday (14 / 9/2020) until September 27, 2020. As of August 30, 2020, there were 7,960 active cases of COVID-19 in Jakarta and as of September to the first 12 days, there was an increase of 3,864 active cases of COVID-19 or an increase of 49% compared to the end of August. The regulation is stated in the DKI Jakarta Governor Regulation No. 88 of 2020 concerning Amendments to the Governor Regulation Number 33 of 2020 concerning Implementation of PSBB in Handling COVID-19 in DKI Province. TRANSPORTATION  The odd-even license plate activities are eliminated  Passengers and the frequency of public transportation are limited to a maximum of 50 percent of capacity.  Car passengers are limited to a maximum of 2 people in one row of seats, unless they come from one family who lives in the same place.  Still allow application-based transportation to work transporting people and goods. However, by still implementing strict health protocols.  SIKM is not enforced.  Vehicle free day (HBKB) or CFD is eliminated. PUBLIC PLACES  Markets and malls may operate with a maximum visitor capacity of 50 percent.  Operations of entertainment venues, recreation areas, city parks, and RPTRA are closed.  Gathering of people at the same time should not be more than 5 people.  Wedding receptions, weddings are only held at the KUA or civil registry office.  Public sports facilities are closed, sports are only allowed to be done independently at home.  Places of worship in the red zone are closed, only places of worship in settlements can be opened with a maximum visitor capacity of 50 percent.  Restaurants and cafes may only serve delivery orders, may not serve dine-ins.  All public facilities are closed. OFFICES & SCHOOL  11 business sectors, foreign countries representative offices, international organizations, BUMN / BUMD that are participating in handling Covid-19, and community organizations engaged in disasters are allowed to operate by limiting the number of employees to a maximum of 50 percent.  Central and local government offices or agencies limit the number of employees to a maximum of 25 percent. If a positive case is found for an office, the office building will be closed for the first three days.  Schools are closed, teaching and learning activities are carried out online.  Covid-19 patients should be isolated independently in the designated places (self-isolation is eliminated).  Individuals who do not wear a mask once will be sentenced to social work for 1 hour or a fine of Rp. 250.000. If twice, will be sentenced to 2 hours of social work or a fine of Rp. 500.000, and so on.  If businesses violate the regulation, it then will be punished with 3x24 hours of closure. If businesses violate the health protocol twice, there will be an administrative fine of IDR 50 million, up to the heaviest penalty, namely revocation of your business license (if you are late paying fines for more than 7 days).
  3. 3. This month Business The income of workers across the world will have fallen by an average 10.7% in the first nine months of this year compared with the same period last year, according to the International Labour Organisation. That amounts to $3.5trn. The percentage of working hours lost because of COVID-19 is most acute in Latin America, followed by South Asia. The ILO’s outlook for the last three months of 2020 has “worsened significantly”. Nike reported an 82% jump in online sales for the three months ending August 31st, year on year. Sales at its stores, most of which were open during the quarter, remained tepid because of social distancing measures. Adverse impacts of COVID-19 on the country’s economy occurs in the sectors below:  Travel industry Popular holiday destinations in Indonesia has grappled with cancellation from hundreds to thousands of tourists, incurring losses worth trillions of rupiah. The Indonesian Travel agent Association (ASTINDO) recorded an almost 90 percent drop in sales due to cancelation. These cancelations directly affected the livelihood of tour guides.  Hotel Industry PHRI chairman, Hariyadi B Sukamdani, said that hotel occupancy rates have plunged well below the seasonal average across overall occupancy rate and some hotels had shut down operations, laying off more than 5.000 workers, as their occupancy rate had plunged to below 5 percent.  Aviation Industry Indonesian airlines have seen a drastic decline in passenger numbers since early March 2020, prompting many to take efficiency measures and laying off their employees. All airlines had cut their flights and routes by 50 percent or more because of drop of in passengers. State-owned airport operator PT Angkasa Pura 1(AP1) reported flight cancellation affecting financial losses on its operation.  Food and beverages industry PT Moka Teknologi Indonesia, a homegrown start-up that provides digital cashier to more than 30.000 merchants in Indonesia, reported that out of the 17 cities it observed, F&B industry in 13 experienced a significant decrease in daily earnings. Major restaurant chains that employ thousands of workers in total have chosen to temporarily shut down operations. Among them are Ismaya Group, which has more than 20 restaurants brand with more than 60 outlets in the country, and the Boga Group, which runs more than 150 restaurants and employs more than 5.000 people.
  4. 4.  Shopping centre Shopping Center Tenant Association (Hippindo) declared that number of malls visitors had drop by up to 50 percent following announcement of positive COVID-19 cases. Trade Improvement indication: Increment in online trading Even though it is a difficult state, every business has its own vision of success and its own challenges in achieving it, for those who believe progress is always possible. For those on a mission who have the courage and perseverance to build for the future, even in uncertain times. Actual entrepreneurs think in years. Not in quarters!!
  5. 5. E-BUKPOT 23 Starting August 1, 2020, all taxpayers who carry out transactions related to Income Tax Article 23/26 and are registered at the Pratama Tax Service Office (KPP) throughout Indonesia are required to produce withholding evidence and required to submit periodic Article 23 and/or Article 26 Income Tax Return through e-Bupot. This obligation is stipulated in the Decree of the Director General of Taxes Number KEP-425 / PJ / 2019. Referring to the Regulation of the Minister of Finance (PMK) Number 12 / PMK.03 / 2014 concerning Evidence of Income Tax Withholding and / or Collection, The e-Bupot 23/26 application is software provided on the website of the Directorate General of Taxes (DGT) or a certain channel determined by the DGT which can be used to: • Produce withholding evidence • Prepare and submit periodic Article 23 and/or Article 26 Income Tax Return • All of that is made in the form of electronic documents Through this electronic system, the process of producing withholding evidence and submitting periodic Article 23 and/or Article 26 Income Tax Return has become easier as the evidences will be stored in the DJP administration system. For the Directorate General of Taxes or DJP themselves, the existence of this e-Bupot system certainly makes it easier for the authorities to supervise taxation. 2. Application for Digital Certificate 1. Digital Certificate issuance Tax Office Taxpayers Go to website: djponline.pajak.go.id Go to menu e-Bupot  Produce withholding evidence  Prepare periodic Article 23 and/or Article 26 Income Tax Return  Submit periodic Article 23 and/or Article 26 Income Tax Return Electronic Receipt
  6. 6. E-FAKTUR 3.0 The national implementation of e-Faktur 3.0 application will be held on October 1, 2020. This e-Faktur 3.0 will replace e-Faktur 2.2 which is considered out of date. All taxpayers can download the latest application at https://efaktur.pajak.go.id There are at least 4 new features in the e-Faktur 3.0 application, namely prepopulated input taxes, prepopulated Import Declaration (PIB), prepopulated tax return (SPT), and facility stamp code synchronization. Prepopulated here means that it has been provided by the system. This prepopulated concept does not contradict the self-assessment principle in the Law on General Provisions and Tax Procedures. E-Faktur 3.0 certainly helps taxable entrepreneurs (PKP) to fill periodic value-added tax (VAT) tax return, especially form 1111 B1 for import declaration and form 1111 B2 for input VAT. Apart from that, the application also allows a link between invoice creation and tax return reporting. Through this system, DJP only provide the data for the taxpayers, the task of calculating, reporting, and paying tax obligations remains in the hands of the taxpayers, not in the hands of the DJP. It is expected that the full implementation of e-faktur 3.0 on October 1 will completely eradicated various problems of tax invoices, both fictitious tax invoices or tax invoice manipulations that repeatedly harm state finances and there will be no more input errors that are detrimental to tax payers, and tax payers are able to completes the Periodic VAT tax return completely, correctly and clearly.
  7. 7. Proposing Changes in Tax Regulation for Construction service Every business is unique and sometimes the regulator need input so that the current regulation can adapt with the regular changes. In September 2020, based on our Academic analysis for Construction sector, Ministry of Finance agree to change below regulation: 1. Reduction in Final Tax rate for construction service 2. Exemption for VAT withholding (WAPU PPN) for transaction among BUMN / SOE (State owned enterprise) and its affiliated companies. During FGD (Focus group discussion) on September 23, 2020, our team become spokesperson. We are here for client, applying our deep sector knowledge, business, financial tax expertise to help the client look to the future.
  8. 8. You might not outrun a train, or leap over buildings. You might not be a superhero. But you are superhuman. You built civilisations through employment and started your own business. You. The pioneer, the inventor, the dreamer. And when the going got tough, you became the teacher, the volunteer, the healer. All while moving the economy, and the world, forward. Imagine what you could do if technology pulled out all the stops, so you can become all that you can become. You’re made for bigger things. Business inside 1. Need money intervention to boost the consumption 2. New normal does not need large space for an office. It needs more advanced technology which can accelerate daily work. 3. Better residential property is more attractive compare the commercial one 4. Creative and innovative person is more important today. Only selected people will become the winner.
  9. 9. 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 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. Accounting and Assurance Independent Audit Actuarial report (PSAK 24) Accounting SaaS Migration with Jurnal.id (Mekari) About Us Contact Us Phone: (62-21) 2929 5870-73 Bambang B. Suwarso bambang.suwarso@kib- consulting.com Rachmat Kurniawan rachmat@kib- consulting.com Yosefine Amelia yosefine@kib- consulting.com Raden Roro Ratna Indah Wulandari wulan@kib- consulting.com Addresses: North Jakarta -14450 The Koppel Building Suite IB. Jalan Pluit Selatan Raya no. 10 Gold Coast Tower Eiffel Unit N Pantai Indah Kapuk www.kib-consulting.com 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.

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Tax Flash KIB Consulting Sep 2020

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