Regulation Update
DKI Provincial Government Revokes Regional Tax Administration Sanction During Pandemic

Thursday, 23 April 2020

DKI Provincial Government Revokes Regional Tax Administration Sanction During Pandemic

The Provincial Government of DKI Jakarta will remove the imposition of administrative sanctions for late payment of tax during the status of an emergency in the Capital City, as stipulated in DKI Jakarta Governor Regulation (Pergub) number 36 of 2020. This facility is provided as a relaxation given to taxpayers (WP) who are constrained to fulfill their obligations due to the 2019 Corona Virus Disease (Covid-19) pandemic.

The DKI Jakarta Provincial Government considers that the delay in fulfilling tax obligations during the pandemic is not a deliberate mistake. In the provision that comes into effect since 9 April 2020 it is stated that the revocation of administrative sanctions will be granted in a position to the taxpayers that pays the regional tax base during the range of 3 April to 29 May 2020.

Therefore, taxpayer does not need to submit an application to the government of DKI to get this facility. Elimination of sanctions will be done automatically on the local tax information system, together with the Regional revenue service (Badan Pendapatan Daerah) and Communications, Informatics and Statistics Agency of Jakarta Provincial Government.

This policy will be re-evaluated, based on the development of the Covid-19 countermeasure process and the evaluation results based on the results of the implementation of the abolition of administrative sanctions. Thus, if the Covid-19 pandemic emergency status is over, this policy will be adjusted.

For information, based on Law number 28 of 2009 concerning Local Tax Policy and Retribution (Pajak Daerah dan Retribusi Daerah/PDRD), the regional government has the authority to collect and set tariffs for a number of types of taxes, excluding taxes collected by the central government.

For the provincial government, it is authorized to determine the following tax type rates:

  1. Motor vehicle tax 
  2. Excise for transferring ownership of motor vehicle
  3. Motor Vehicle Fuel Tax
  4. Surface Water Tax
  5. Cigarette tax 

While the regency / city government has the authority to determine the following types of taxes:

  1. Hotel tax 
  2. Restaurant tax
  3. Entertainment tax
  4. Advertisement tax
  5.  Street lighting tax 
  6. Tax on Non-Metal Mineral and Rock
  7. Parking tax
  8. Ground water tax
  9. Swallow's nest tax
  10. Rural and Urban Land and Building Tax
  11. Excise on Acquirement of Right on Land and Building

As we know, DKI Province is one of the regions with the highest number of positive Covid-19 cases in Indonesia. The government has even established an area that is identical to the monas monument, which has implemented a Large-Scale Social Restriction (PSBB) as stipulated in DKI Jakarta Governor Decree number 380 of 2020. The government has even established the status of Large-Scale Social Restrictions (PSBB) for the region that is identical to the national monument, as stipulated in DKI Jakarta Governor Decree number 380 of 2020. (ASP/KEN)


 




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