Fish as Non-VATable Goods
On 5 August 2020, the Minister of Finance (MoF) issued Regulation No.99/PMK.010/2020 (PMK-99) regarding basic necessities which are not subject to Value Added Tax (VAT). PMK-99 adds certain fish products to the list of basic necessities that are highly required by the public. The addition is as a result of the Supreme Court Decision No.32 P/HUM/2018 (PUT-32) dated 8 August 2018, which granted a judicial review against PMK-116. PMK-116 did not include fish products in the category of basic necessities entitled to non-VATable status. PMK-99 revokes MoF Regulation No.116/PMK.010/2017 (PMK-116).
The full list of these goods under PMK-99 are: 1. Rice and un-hulled rice; 2. Corn; 3. Sago; 4. Soybean; 5. Salt for consumption; 6. Meat; 7. Eggs; 8. Milk; 9. Fruits; 10. Vegetables; 11. Yams; 12. Spices; 13. Consumption sugars; and 14. Fish
E-Objection
On 29 July 2020, the Director General of Taxes (DGT) issued Regulation No.PER-14/PJ/2020 (PER-14) regarding the procedure for filing an objection letter electronically (e-Objection). PER-14 comes into effect from 1 August 2020.
PER-14 provides only an additional avenue for tax objection letter submission via an electronic channel in order to increase the effectiveness and efficiency of the taxpayer. This e-Objection process is available at all times.
An e-Objection can be carried out by taxpayers who:
- have an active EFIN;
- have a registered account in the DGT website; and
- have a valid electronic certificate.
Additional Tax Incentive Related to Covid-19
On 14 August 2020, the Ministry of Finance (MoF) issued Regulation No.110/PMK.03/2020 (PMK-110). PMK-110 increases reduction of monthly estimated Corporate Income Tax payments and also introduces a special tax facility related to construction income on certain irrigation projects.
Further reduction on Article 25 monthly Income Tax
PMK-110 has increased the Article 25 monthly Income Tax instalment reduction from 30% to 50%. This 50% reduction is applicable starting from the Article 25 monthly Income Tax payment for the month of July 2020 for taxpayers that have previously submitted notification.
Zero Final Tax incentive for certain construction service
Under PMK-110, the Government will bear the Final Income Tax on construction income received by taxpayers under an Acceleration Program to Improve the Utilisation of Irrigation Water (Program Percepatan Peningkatan Tata Guna Air Irigasi/P3-TGAI). This facility is applicable from 14 August – December 2020. For further implementation, please consult us: [email protected].
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