The Government Extends Tax Incentives until December 2020 – The provision of tax incentives for business actors will be extended until December 2020, from the original plan which will end in September 2020. The policy to extend incentives is stipulated in Presidential Regulation (Perpres) No. 72/2020, which revised Perpres No. 54/2020.
In Perpres 72 this accommodates new things, namely the expansion and extension of tax incentives for the business world, which in Perpres 54 is given until September, will be extended until December 2020.
The extended tax incentives are only income tax (PPh) Article 21 borne by the government, exemption of Article 22 PPh and VAT on imports for medical devices, as well as the acceleration of value added tax (PPN) restitution.
However, there is no mention of other tax incentives in handling the impact of the Corona pandemic, such as the exemption of import tax article 22 for businesses and a 30% discount on article 25 income tax installments, whether or not extended.
With the extends tax incentives, there will be a correction of tax revenue to Rp. 1,404.5 trillion, down 4% from the previous projected Rp. 1,462.6 trillion. Although extending tax incentives, the realization of the utilization of tax incentives is still relatively low, the realization of new business incentives is 10.14%.
To note, the government released tax incentives for business actors affected by the Covid-19 Pandemic for 6 months, from April to September 2020. The incentives were given to 1,083 Business Field Standard Classification (KBLI), in 18 business sectors.
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