What You Need To Know About e-Bupot Application – Following KEP-269/PJ/2020 issued by The Directorate General of Taxes (DGT), DGT determines taxable entrepreneurs (PKP) registered at KPP Pratama throughout Indonesia as tax withholder/collector of income tax (PPh) Article 23 and/or Article 26.

This provision requires PKP to make a withholding tax slips and submit the Income Tax Returns Article 23 and/or Article 26 starting August 2020. Withholding tax slips and the Periodic Tax Returns of Article 23 and/or Article 26 are prepared based on the Regulation of the Directorate General of Taxes No. PER-04/PJ/2017.

Based on the Regulation of the Directorate General of Taxes No. PER-04/PJ/2017, withholding tax slip and Periodic Tax Return of Article 23 and/or Article 26 could be in the form of paper forms or electronic documents. However, DGT wants all PKP to use e-Bupot starting in August 2020. So, what exactly is e-Bupot?

Definition

Referring to Article 1 number 10 on the Regulation of Directorate General of Taxes No. PER-04/PJ/2017, electronic application of withholding tax slip Article 23 and/or Article 26 (e-Bupot application 23/26) is software that is provided on DGT’s website or certain channels determined by the Director General of Taxes.

The application can be used to make withholding tax slips, and Periodic Income Tax Return Report of Article 23 and/or Article 26 in the form of electronic documents. The specific channel that can be used to access the e-Bupot 23/26 application is DGT Online.

Furthermore, the Article 23 and/or Article 26 withholding tax slip is a form or other equivalent document, which is used by the tax withholder/collector as the proof of deductions and accountability for deductions of Article 23 and/or Article 26 that has been carried out.

Income Tax Article 23 is a tax that is levied on income derived from capital (dividends, interest, royalties), the delivery of services, or gifts and awards, other than those subject to Income Tax Article 21. Meanwhile, Article 26 is a tax that is imposed on income in any form received by foreign taxpayers other than permanent entities (BUT) from Indonesia.

As for Article 6 paragraph (1) Regulation of Director General of Taxes No. PER-04 / PJ / 2017 there are four criteria for withholding taxes that must use the e-Bupot 23/26 application.

First, issuing more than 20 of withholding income tax slips Article 23 and/or Article 26 in one tax period. Second, the amount of gross income which is the basis for the imposition of income tax is more than one hundred million rupiah in one piece of evidence. 

Third, have submitted the electronic tax return before. Fourth, registered at the Middle Tax Office, the Tax Office within the Special Jakarta DGT Regional Office or the Tax Office within the Large Taxpayer Regional Tax Office.

Terms and Benefits

Referring to Article 7 number 1 on the Regulation of Directorate General of Taxes No. PER-04/PJ/2017, tax with holder/collector must have an electronic certificate to be able to submit the Periodic Income Tax Return Article 23 and/or Article 26 by using the e-Bupot 23/26 application.

An electronic certificate (digital certificate) is an electronic certificate that contains an electronic signature and identity that shows the legal subject status of the parties in an electronic transaction issued by the DGT or electronic certification provider.

This electronic certificate is given to PKP as proof of electronic tax service user authentication. To obtain this electronic certificate, PKP must submit an application to the DGT both online and directly at the registered KPP office.

The procedure for obtaining an electronic certificate is regulated in the Regulation of the Directorate General of Tax Number PER-04/PJ/ 2020. In addition to electronic certificates, because the e-Bupot 23/26 application is one of the features of DGT Online, PKP must also have a DGT Online account.

As a technological breakthrough, there are at least four advantages offered by the e-Bupot 23/26 application. First, withholding tax slip no longer requires a manual signature. Secondly, the withholding tax slips and periodic tax returns for Income Tax 23/26 can be stored safely in the system.

Third, ease the process of reporting the Income Tax Return Article 23/26 as it is done online and real time, directly in the application. Fourth, alleviate the administrative burden on banks for taxpayers and DGT.

Form of Expansion

Through the Provision of Director General of Taxes Decree No. KEP-269/PJ/2020, the Director General of Taxation extends coverage of PKP which is required to make withholding tax slips and is required to submit periodic income tax returns for Article 23 and/or Article 26 based on Regulation of the Director General of Tax Number PER-04/PJ/2017.

Previously, on 5 September 2019 a similar decision had been released by the Director General of Taxes, namely the Provision of the Director General of Tax Number KEP-599/PJ/2019.

Based on the attachment to the regulation, PKP registered in 18 KPPs as listed in the annex starting the October 2019 tax period is also determined as tax withholder/collector of Income Tax Article 23 and/or Article 26 so that it has similar responsibilities.