New Rules for Filing Tax Returns:
The Director General of Tax (DGT) has issued Regulation No.PER-02/PJ/2019 (PER-02), dated and effective from 23 January 2019. PER-02 serves as the main regulation compiling administrative matters for all types of monthly and annual tax returns, and revokes several existing DGT regulations on these matters.
PER-02 stipulates that companies registered in the following tax offices must
now submit their Corporate Income Tax Return (CITR) through e-Filing:
- Tax offices for medium-sized taxpayers (Madya);
- Jakarta Khusus tax offices that include:
a) Tax offices for foreign investment companies (Penanaman Modal Asing/PMA);
b) Tax offices for foreign companies and foreigners (Badan dan Orang Asing/Badora);
c) Tax offices for listed companies (Perusahaan Masuk Bursa/PMB); and - Tax offices for large taxpayers (Large Tax Office/LTO).
Of particular note, under the list of documents that are required to be attached to the CITR, one of the new additions stipulated in this regulation is that Transfer Pricing Documentation (TPD) must be included with the filing, namely Master File, Local File, and/or Country by Country Report (CbCR). Based on this, taxpayers may be concerned that their CITR may be deemed incomplete if the TPD is not attached to the CITR during the submission.
However, the Directorate General of Taxation (DGT) has redistributed Regulation No.PER-02/PJ/2019, which changes the Transfer Pricing Documentation requirement for Corporate Income Tax Return submission. The redistributed version now only requires: the Summaries of the Master File and Local File, and the receipt of either the Country-by-Country Report (CbCR) Notification or CbCR submission in the DGT Online system. This new requirement is in line with Ministry of Finance Regulation No.213/PMK.03/2016.
New rules on Article 25 installments:
The Minister of Finance (MoF) has issued a Regulation No.215/PMK.03/2018 (PMK-215) regarding Article 25 instalments for New Taxpayers, Banks, StateOwned Enterprises, Publicly-Listed Taxpayers and Other Taxpayers that must prepare periodic financial statements, including individual taxpayers of certain entrepreneurs.
PMK-215 is dated and effective from 31 December 2018. PMK-215 revokes the previous regulation No.255/PMK.03/2008, which was last amended by 208/PMK.03/2009. PMK-215 stipulates the Article 25 instalment calculation basis including the allowable tax credit for each category of taxpayer. For more details, kindly contact us: [email protected].
New list of Tax Holiday eligible industries:
The Head of the Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM) has issued Regulation No.1/2019 which provides the new list of Indonesian Standard Industrial Classifications (Klasifikasi Baku Lapangan Usaha Indonesia/KBLIs) that are entitled to apply for a tax holiday. Please refer to this link for the new list, which contains 169 KBLIs.
Apart from the new list, this regulation also provides further guidelines with regard to the time limit for applying for tax holiday under the transitional rules in Ministry of Finance Regulation No.150/PMK.010/2018. Under the transitional rules, taxpayers in eligible pioneer industries that have had licences issued by BKPM since 16 August 2015 up to 26 November 2018 can still apply for tax holiday, as long as the application is submitted prior to the start of commercial production and within one year since the issuance of the Single Business Number (Nomor Induk Berusaha) (i.e. Online Single Submission/OSS registration number).
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