Tax Incentives Related to Covid-19 are Only Enjoyed By 0,8% Taxpayers

JAKARTA. The Directorate General of Taxes (DGT) records the number of taxpayers (WP) who have used tax facilities, in order to mitigate the impact of the Corona Virus Disease (Covid-19) pandemic as many as 355,000 taxpayers. This amount is only about 0.8% of the number of registered taxpayers which is according to DGT as of December 31 were 42 million.

As is known, the government has issued a number of taxation facilities, include reduction of Corporate Income Tax (CIT), Income Tax Article (ITA) 21 borne by the government (DTP), exemption of ITA 22 on import, reduction of ITA 25, MSMEs Final Income Tax borne by the government, and the acceleration of Value Added Tax (VAT) refunds. 

Until 12 June, the number of taxpayers who had submitted a notification to DGT that they had used ITA 21 borne by the government facility are 103,000 taxpayers. While those who have used elimination of ITA 22 on import facility are 8,700 taxpayers.

Read: Covid-19 Spreading Escalates, the Recipient of Tax Incentive Widened to MSMEs

Meanwhile, taxpayers using reduction of ITA 25 are as many as 47,500 corporate bodies. Then MSMEs who have used the Final Income Tax borne by the government facility are 192,000 MSMEs, and those who have proposed the acceleration of VAT refunds are 3,816 business actors.

Coming from Various Business Classifications (KLU)

According to DGT, those who have used these tax facilities come from almost all KLU who are entitled to incentives. For example, ITA 21 borne by the government incentive has been used by taxpayers originating from 90% of KLU, reduction of ITA 25 facility has been used by taxpayers of 83% KLU, and ITA 22 on Import facility is used by taxpayers of 72% KLU.

Read: Here is The Procedure for Reporting Government-Borne Tax Incentive

The existence of this tax incentive is contaied in the Revised 2020 State Budget (APBN-P), with the amount of budget set up as much as IDR 70.1 trillion.
From the budget amount provided, the value of incentive that has been given is 6.8%.

The plan is the government will increase the budget for tax incentives by changing the third 2020 state budget to IDR 123.01 trillion.