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TAX FLASHKIB E-newsletter May 2020
United we stand, divided we fall.
On March 31, 2020, President Joko Widodo has declared a COVID-19
public health emergency over the increasing numbers of infections and
deaths across the country.
The President has resisted the idea of imposing a national lockdown,
saying it would be unsuitable for Indonesian society and has instead
called on the public to practice social distancing as a preventive measure
to contain the outbreak.
President also urged local and regional leaders to follow current
regulations and not issue their own regulations.
“Under the current conditions ,
it’s time for us to work, study,
and worship from home. It’s
time for us to work together, to
help each other, to unite, and
~ President Joko Widodo, calls
for social distancing to stem
virus spread – The Jakarta Post.
In picture: A clear blue sky, pollution free and an empty street of Thamrin,
In This Issue
COVID-19 in the news.
Perppu no. 1/2020
POJK no. 11/2020
SE no. 03/PP/2020
PMK no. 23/2020
PMK no. 28/2020
ND No. 633/PJ.04/2020
PMK no. 29/2020
A Case & Solution
The following are snapshot news captured from numerous online media
“The greatest compassion is the prevention of human suffering through patience, alertness, courage and kindness.”
― Amit Ray
Perppu no. 1/2020
The Background :
This pandemic situation has deteriorated the national economic growth, decreased our
national income, and escalated the state’s expenditures.
The Government has taken significant measures to maintain public health and to save national
economy and its financial system stability, one of them is through implementing tax policy.
Filling by the Taxpayer and the completion by the DGT
Objective: to provide sufficient time for the Taxpayer and the DGT in fulfilling their respective
obligations, during the period of force majeure as the impact of the COVID-19 pandemic.
Filling for an objection is extended to 9 months.
Extending time of settlement:
• Applying for a tax refund (restitution) through an audit/
tax examination is extended to 18 months.
• Applying for an objection is extended to 18 months.
• Applying for a reduction or an exemption of an
administrative sanction payment is extended to 12 months
• Applying for a request for a reduction/ a cancellation of tax
decision, or a cancellation of a tax audit result is extended to
Tax overpaid settlement is extended to 2 months (previously only 1 month extension
was given, now it becomes 2 months).
“Listen to the mustn’ts, child. Listen to the don’ts. Listen to the shouldn’ts, the impossibles, the wont’s. Listen
to the never haves, then listen close to me… Anything can happen, child. Anything can be.”
― Shel Silverstein
Gradual Reduction on Corporate Income Tax
• to help sustain the national corporations and to empower their business activities.
• to provide incentives for corporate taxpayers so as to encourage companies to go
public, as long as 40% of the company shares are publicly listed and traded on
the 40% of the Exchange --- the BEI (Bursa Efek Jakarta).
Normal Rate 25% 22% 20%
reduced 2021 2022
Corporate Income Tax
for Go Public
Companies *3% lower
than the normal rate
*) Term and condition applied by PP (Peraturan Pemerintah)
Based on PER-08/2020, applied to:
1. General Taxpayers
2. Taxpayers who have periodic financial statement obligations (banks, state-owned enterprises, regional
owned enterprises, taxpayers who enters exchange market, and other taxpayers who are based on the
provisions the laws and regulations must make periodic financial statements.
“Life’s under no obligation to give us what we expect.”
― Margaret Mitchell
Taxation on Digital
Economy & E-Commerce
To ensure business fairness and equality during the social distancing reinforcement.
VAT on imported intangible goods & services
• Charge value-added tax (VAT) on taxable intangible goods
and/or services sold through e-commerce platforms
• Charge income tax or electronic transaction tax through PMSE
(Perdagangan Melalui Sistem Elektronik) done by foreign Non-
resident tax payers that have significant economic presence
Further provisions will be regulated in a government regulation
(PP) and The Minister of Finance regulation (PMK).
“Hope is the thing with feathers that perches in the soul and sings the tune without the words and never stops at
― Emily Dickinson
Presidential Decree No. 12/ 2020
On Monday, April 13, 2020, President Joko Widodo declared the Covid-19 pandemic in
Indonesia as a non-natural National disaster.
The decree states that efforts to mitigate the pandemic are to be led by the Covid-19 task
force with the cooperation of regional administrations, ministries, and national agencies.
The Government will remain consistent with the PSBB (large-scale social restriction) policy.
The Presidential decree may lead to the following business anticipations:
Deductible Applicable law:
Expenses include: *) Law no. 7/1983 regarding income tax as was amended by Law no. 36/ 2008.
*) Government regulation no. 93/ 2010.
Gifts and donations All these expenses must be supported by evidence and directed to relevant authorised
expenses, research institution and the following requirements are met:
and development, a. The previous year’s corporate income tax return of the taxpayer that claims such
educational donation expense must be in a fiscal profit position;
facilities, sports b. The donation is supported with sufficient supporting documentation;
development, and c. The institution that receives the donation must be registered as a taxpayer, except
construction of for those that are exempted by law, and not a related party of the donor;
social d. The total donations or expenses for one fiscal year should not exceed 5% of the
infrastructure for previous year’s fiscal profit.
handling natural There are also certain requirements that must be fulfilled in terms of type of donation
disaster. and how to value the donation that is not made in the form of cash.
• Compulsory Tithe (“zakat”) or religious contribution, provided that valid
supporting evidence is available and certain requirements are met;
• Non-creditable input VAT that has been paid and incurred from a transaction that
is related to the activity of generating, collecting, and maintaining income. If the
input VAT relates to an asset that has useful life of more than 1(one) year, it must
be capitalised and expensed through amortisation or depreciation.
Undeliverable To be advised.
“Income tax returns are the most imaginative fiction being written today.”
POJK 11/ POJK.03/2020
- To ensure stability for national Bank & the overall financial system.
- To anticipate potential disruption in the banking industry by relaxing certain
requirements on banks’ asset quality assessment concerning debtors affected by the
- To facilitate borrowers to escape potential non-performing loan.
- To stimulate the national economic growth
Subjects affected by this regulation:
• BUK, BUS (Sharia Commercial Bank), UUS (Sharia Business Unit of a Conventional
Bank), BPR (Badan Perkreditan Rakyat), and BPRS (Bank Pembiayaan Rakyat Syariah)
• Borrowers including SMEs, KUR (Government’s microcredits program) affected by the
COVID-19 pandemic under Rp. 10 billion in debt. Debt over IDR 10 billion can be
restructured and to be categorized as performing loan.
Credit restructuring/ financing methods as regulated by POJK 11/2020:
Reduction of loan principal repayment
Reduction of loan interest repayment
Additional credit/ financing facility
Credit/ financing conversion into Penyertaan Modal Sementara.
“You can’t tax business. Business doesn’t pay taxes. It collects taxes.”
Due to the State emergency the country is experiencing, on 20 March 2020, OJK issued the
moratorium which confirms the following Equity Crowdfunding licensing process have been
put on hold until further notice.
“To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors is sinful and tyrannical.”
― Thomas Jefferson
S-100/D.04/2020 – OJK moratorium on postponing the licensing process
“The power to tax is the power to destroy.”
― John Marshall
Tax Court Hearings
Tax court hearings that were initially schedule during the prevention period will be postponed. The new tax court
hearings will be scheduled after the prevention period has passed
Application for Tax Appeal
For tax appeal that will be applied directly to the tax court reception desk and the deadline to submit the appeal
letter falls during the prevention period, the deadline will be deferred with the corresponding numbers of days
relative to the prevention period. Under this SE, the number of total maximum deferred days is 36 days (17 March
to 21 April 2020).
Application for tax lawsuit
If the lawsuit is to be applied directly to the tax court reception desk and the deadline to submit the lawsuit falls
during the prevention period, the deadline is extended to 14 days after the prevention period ends (5 May 2020).
Tax lawsuit application letter that are submitted by post must remain following the prevailing regulations.
Period for preparation and implementationof tax court hearings
The period for preparation and implementation for tax court hearing as referred to in Article 48 of Tax Court Law is
not extended. Similarly, the period of court hearing procedures until the issuance of court verdicts as referred to in
Article 81 and 82 of Tax Court Law is also not extended.
Application of appeal, lawsuit, or judicial review that is submitted directly through helpdesk service will be
This circular letter provides a guideline in adjusting the implementation of trial and
administrative services during the prevention period for the spread of Corona Virus Disease
2019 (Covid-19) within the tax court.
Preventing the spread and protecting the Judges, Registrars, and employees within
the Tax Court and users of administrative services in the Tax Court from Covid-19
Providing guideline of adjusting trial implementation such as the provisions on the
period of appeal and lawsuits.
Fiscal Incentive due to COVID -19
Fiscal Incentives & KUR IDR 70,1 Trillion.
The Government will bear 100% Taxpayers in 19 industries, Taxpayers in 19 industries,
of income tax article 21 for certain taxpayers obtaining KITE certain taxpayers obtaining KITE
employers’ income of up to IDR (Kemudahan Impor Tujuan (Kemudahan Impor Tujuan
200 million for employees in Ekspor) IKM (Industri Kecil Ekspor) IKM (Industri Kecil
certain manufacturing Menengah) will be exempted Menengah) will receive a
industries. from Income Tax Article 22 on reduction of Income Tax Article
import of goods. 25 of 30%
VAT refund will be expedited for Corporate Income Tax will be Delay in loan (nominal and
taxpayers in 19 industries in gradually reduced to 22% for interests) repayment for all KUR
order to sustain businesses’ fiscal year 2020 and 2021, and (Kredit Usaha Rakyat) scheme
liquidity. 20% starting 2022 who are impacted by COVID-19
for 6 months.
PMK 23/ PMK.03/2020
Ministry of Finance Decree no. 23/PMK.03/2020 on Tax Incentives for Taxpayer who are.
affected by Coronavirus Pandemic.
Prompt actions against the massive and significant impact of Coronavirus on global economy.
- Keeping the stability of economic growth, purchasing power of people and productivity of certain
sectors in relations to Coronavirus pandemic.
- Supporting the management of Corona Virus impacts.
Income tax art. 21 borne by the Government for 6 months
for employee with gross income not more than IDR 200 m.
- Employees who work in certain manufacturing sector
(440 business classification/KLU)
- Obtained NPWP; and
- Annual Gross Income < IDR 200.000.000
• Employer to deliver written notice to the Head of the registered tax office.
• Incentive will apply from tax period of the notice until September 2020.
“Irradiated humans do not have robust immune systems.”
― Steven Magee
Income tax art. 22 on import is exempted for:
- Taxpayer in certain manufacturing sectors (102 KLU)
- Taxpayers who have obtained KITE facilities (Kemudahan Impor
• Submitting the Notice of Tax Exemption request to the
head of tax office which the central taxpayer is registered.
• Exemption will apply from the issuance of the Notice of
Tax Exemption until 30th
of September 2020.
Income tax art. 25 reduction by 30%
- Taxpayer in certain manufacturing sectors (102 KLU); and/or
- Taxpayer who have obtained KITE facilities (Kemudahan Impor
- Taxpayer to submit a written notice on the reduction of
Income Tax Art. 25 to the Head of the registered tax office.
- Tax reduction is applied from the tax period of the notice
until September 2020.
“If you’re reading this… Congratulations, you’re alive. If that’s not something to smile about, then I don’t know what is.”
― Chad Sugg
PMK 28/ PMK.03/2020
Prompt action by the Government to give tax incentives in order to ensure the APD
(Personal Protective Equipment), and medicines availability in combating COVID – 19 pandemic.
The following are certain parties to receive tax incentives:
• Government Agencies
• Other parties that have been appointed by the Government and Hospitals to assist the
handling of the COVID – 19 pandemic.
Value Added Tax (VAT) incentive, will be provided to certain parties as the above mentioned
on the import or domestic purchase of Taxable Goods and Services.
“No nation has ever taxed itself into prosperity.”
Form of VAT
•Import VAT is
• VAT on
free gifts) is
borne by the
• VAT on the
borne by the
from art. 21
from a certain
payer will not
be required a
the import or
• exemption of
art. 22 on
by the DGCE
will not be
• SKB is
tax art. 23 for
from a certain
Type of Goods
equipment to handle
The DGT provides relaxation on annual tax return submission (extension) deadline, and methods to
both corporate and individual taxpayers.
The Corporate taxpayer and individual taxpayer are still required to submit their annual income tax
return at the latest 30 April 2020. However, the complete supporting documents pertaining to their
tax return may be submitted by 30 June 2020 at the latest.
A tax penalty of 2% per month will be applied for late tax payment paid after 30 April 2020.
No tax penalty applied for late submission.
None of the above facilities is applicable for taxpayer with an Overpaid status or for those requiring tax
“The best measure of a man’s honesty isn’t his income tax return. It’s the zero adjust on his bathroom scale.”
―Arthur C. Clarke
PER no. 06/PJ/2020
For corporate taxpayer, the following informations are
required to be submitted by the latest 30 April 2020:
1. Form 1771 and annexure of 1771 I-VI
2. Transkrip Kutipan Elemen Laporan Keuangan will be
temporarily referred as financial statements
3. Evidence of Tax Payment, if the tax return being
submitted is less paid.
For individual taxpayer, self-employed, or freelancers, the
following information are required to be submitted by the
latest 30 April 2020:
1. Form 1770 and annexure of 1770 I-IV
2. Balance sheet (simple format)
3. Evidence of tac Payment, if the tax return being
submitted is less paid.
Pay your tax on time
The Ministry of Finance of Republic Indonesia from the office of Direktur Pemeriksaaan dan
Penagihan, issued this internal official memo, which is addressed to:
1. Head of DGT Regional
2. Head of KPP Kantor Pelayanan Pajak
In a response to the recent PMK policies and reinforcement amidst the Covid-19 pandemic, this
note summarized the following :
Tax Audit Activities
1. To postpone new SP2 issuance and submissions to Taxpayer with certain term &
condition as described on Undang-Undang KUP.
2. Issued SP2 remains active and audit activities shall resume as accordingly
3. Communication methods shall be done with minimum direct contact and will be
proceed electronically by emails, correspondence, chat, and other online
4. During the period of Covid – 19 pandemic, audit activities will focus will on the
settlement of SP2 payment which maturity date have been constituted on Undang
-Undang KPP , audit on SPT lebih bayar Restitusi and Audit on application of PKP
5. SPHP Surat Pemberitahuan Hasil Pemeriksaan and final discussion on audit result
methods. Please contact your tax consultant for technical details.
6. Technical assistance on transfer pricing and other special transaction will be done
by emails and or other electronic communications.
7. All cases and reviews continued to be processed through minimum direct contact.
All activities remain active and continuously proceed as normal, with minimum direct contact with
the DGT personnel.
At all time, electronical communication shall be the main source of contact.
“There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for
―Robert A. Heinlein
Nota Dinas no. 633/PJ.04/2020
On March 20th
, 2020, The Ministry of Finance through the Director General of Taxes issued a
taxation policy in connection with the Corona Virus outbreak. Stated in the KEP-156/PJ/2020,
taxpayer will be given abolition sanctions for delays.
Following are the policies:
Tax returns for the February 2020 tax period can be submitted on
March 21, 2020 to April 30, 2020 without being subjected to
administrative sanctions for delays.
Submission of certain legal remedies (the reduction or cancellation of
the tax assessment letter or the second tax bill) that have a deadline for
submission between March 15 and April 30, 2020 is given an extension
of the deadline until May 31, 2020.
“Taxes are paid in the sewat of every man who labors.”
―Franklin D. Roosevelt
KEP – 156/PJ/2020
Individual taxpayers who report their Annual Tax
Return for the 2019 Fiscal Year and who make
payments for the amount of tax underpaid in their
Annual Tax Returns for the 2019 Fiscal Year up to
April 30, 2020, will be given abolition of
administrative sanctions for delays.
Those who are participants of the tax amnesty
program and have an obligation to submit a report
on the realization of the transfer and investment of
additional assets can submit the report no later
than 30 April 2020.
Valid from April 7, 2020 until the situation of COVID-19 is over, the due date for implementing
tax administration services can be extended. To apply, taxpayers will submit applications for
tax administration services electronically.
Regulated in KEP-178/2020 and SE-26 of 2020, following are the extension of tax
a. The service period of 1 to 7 days is extended to 15 days
b. The service period of 7 days to 1 month is extended to 1 month
c. The service period of 1 month or more: not extended
“The social justice movement of the 21st century is the economic development.”
2. Fill in the tax administration service request form.
3. Upload a digital copy of the tax administration service
request form that has been signed by the taxpayer along
with the required documents.
1. Send electronic documents to the e-mail address of
KPP, KP2KP and / or DJP Regional Office that have
been registered or through certain channels
determined by the Director General of Taxes
However, this regulation is not valid for tax
administration services which:
a. Maturity has been previously
regulated in the Act, PERPPU, and PP
b. Submitted online
KIB Consulting is always on duty for you, our valued clients and partners.
“Manifest plainness, embrace simplicity, reduce selfishness, have few desires.”
Due to the PSBB reinforcement policy, where there is an
operational/business restriction as a dire effort to minimize the
Covid-19 pandemic exposure.
This S-88/PJ.01/2020 letter is especially brought an exemption to
such a restriction.
The tax consultant is considered a partner with strategic business
activities to the Ministry of Finance.
The letter were issued to all tax consultants members of Ikatan
Konsultan Pajak Indonesia (IKPI), AKPI 21, and Perkoppi.
The circular letter confirms that all registered tax consultant may
continue to operate in business, as their services are acknowledged
by the Ministry of Finance as strategically satisfied the PSBB
regulation and/ or policy.
― Lao Tzu
“It’s okay if you disagree with me. I can’t force you to be right.”
A Case & Solution
Currently there are export by ship. However, original shipping documents normally
sent by air which now have some delay because there is no flight during COVID 19
1. If product arrive in Jakarta but original shipping documents have not arrived,
what can be done?
2. Is delay submitting the following doc (letter from air service
provider/tracking system informing of original shipping doc., Copy of
shipping doc) acceptable by the customs in order to unload and take out the
3. Any guarantee requirements (if any, how much?). Then when original
shipping doc. arrive, submit them to customs and receive back the
guarantee, if any.
1. There are special privilege for certain product to imported as long as related
with raw material of medicine product as we have COVID 19 pandemic. If
the product related with medical product then there is privilege on it. Please
check on SE Dirjen BC No. 07 year 2020.
2. If product ( for any product) arrive in Jakarta but original shipping
documents have not arrive, the importer can use PIB + scanned document
from air service provider/tracking system informing of original shipping ,
instead of using hardcopy in order to unload and take out the product.
Please check on article 8 (2) Perdirjen BC 16/ 2016. On printed scanned
document, which will be submitted, please stamp: “Hasil Cetak Dokumen
3. Hard copy is not needed and there is no guaranteed requirement for that.
WORK FROM HOME, does not mean less productivity comparing if we do
daily work at the office.
Make sure that PC/Laptop with good internet network provider, has been provided
Remote automated Screening and printing process
Extensive data backup mechanism
To do list and regular progress report should be applied for every single employee
Work Guidance, quick response for solution and monitoring process
Do regular and clear communication using available media such as WhatsApp,
Discipline and initiative work, should be part of mentality
Wake up, take a shower and dress up properly as we want to go to the office as
Stand up and do some stretching after 4 (four) continues working
“The most successful men work smart, not hard.”
― Bangambiki Habyarima
Coordination (Zoom) meeting with KADIN to support Covid -19 Task Force
In discussion with the House of Representative (DPR Komisi XI) on an idea of forming
a Badan Penyelamatan Ekonomi Negara, which aiming for the Government to rescue
business losses and prepare for the national economy mitigation plan.
(62-21) 2929 5870-73
Bambang B. Suwarso
Raden Roro Ratna
North Jakarta -144550
Building Suite IB.
Jalan Pluit Selatan Raya no. 10
Gold Coast Tower
Eiffel Unit N
Pantai Indah Kapuk
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
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.
Bambang Suwarso gave his recommendation to the following
Government Institutions in coping with Covid-19 pandemic
BUMN – Ministry of State-Owned Enterprises
Kemenkes – Ministry of Health
BPJS – Social Security Administering Body
Kemensos – Ministry of Social Affairs of Republic of Indonesia
Kemenkeu – Ministry of Finance of Republic of Indonesia
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