DGT Decree on e-Bupot Applications for Taxable Entrepreneurs (PKP) – The Directorate General of Taxes (DGT) will conduct socialization to tax authorities and taxable entrepreneurs (PKP) following the stipulation of PKP registered at KPP Pratama throughout Indonesia as taxpayers of Article 23 and/or Article 26 PPh through KEP-269/PJ/2020.

With this stipulation, almost all PKP will be required to make proof of deductions and submit tax returns for Article 23 and/or Article 26 income tax through e-Bupot applications.

The DGT will also send messages by email to all PKP. In addition to informing the provisions that took effect on August 1, 2020, email blasts will also be used as a guidance of e-Bupot.

Previously, according to PER-04/PJ/2017 it was still possible to use paper forms or offline. However, DGT expects that all PKP can implement e-Bupot starting in August 2020 because basically they have applied e-invoices and electronic certificates.

In accordance with PER-04/PJ/2017, there are two requirements for taxpayers who want to use the periodic tax return and a list of proofs of withholding tax PPh Article 23 and/or Article 26 in the form of papers.

First, taxpayers issue no more than 20 proofs of withholding income tax Article 23 and/or Article 26 in one tax period. Second, the amount of gross income which is the basis for the imposition of PPh is not more than one hundred million rupiah for each proof of deduction in one tax period.

Based on DGT data, there are not many PKP that issue less than 20 deductions per tax period. Thus, the PKP has used e-Bupot because it has published more than 20 deductions.

Also according to PER-04 / PJ / 2017, taxpayers who have submitted tax returns for Article 23 and/or Article 26 in the form of electronic documents have to submit tax returns for Article 23 and/or Article 26 for the next tax period in the form of electronic documents.

This regulation is stated in the Decree of the Director General of Tax No. KEP-269/ PJ/2020. Through this deree, which was made on June 10, 2020, the DGT determined that PKP registered with KPP Pratama throughout Indonesia as taxpayers of PPh Article 23 and/or Article 26.