Getting Incentive, VAT Media Companies are Borne by The Government

Thursday, 17 September 2020

Getting Incentive, VAT Media Companies are Borne by The Government

JAKARTA. The government provides tax incentives for print media companies, in the form of Government-borne (DTP) Value Added Tax (VAT). The VAT borne by the government applies to VAT on imports and delivery of newspapers and magazine paper by media companies.

It is as stated in the Minister of Finance Regulation (PMK) number 125 / PMK.010 / 2020, which is effective from 15 September 2020. This policy was issued as a form of government support for the print media industry, which was affected by the Corona Virus Disease 2019 (Covid-19) pandemic.

In the regulation, which is included in the category of press publishing companies, namely legal entities that produce printed media such as newspapers, journals, bulletins and magazines.
These companies are included in the Business Classifications (KLU) 58130, as stated in the Annual Income Tax Return (SPT) for the 2018 and 2019 tax years.

Read: Enjoying Reduced Income Tax Rate Facility, Issuers Must Report Share Ownership

Furthermore, media companies that use this facility are required to make tax invoice and report the realization of VAT borne by the government. The tax invoice is then submitted in the periodic VAT return, with the caption "VAT borne by the government  ex-PMK number ../PMK.010/2020".

If the media company does not make a tax invoice as described, or does not make a report on the realization of VAT borne by the government, it is not entitled to use this facility.

With the issuance of this facility, it will add to the list of incentives provided by the government related to Covid-19 pandemic. Previously, the government has provided incentive facilities for government-borne Income Tax Article (ITA) 21, government-borne final income tax for MSMEs, and government-borne final income tax for the construction sector. In addition, the government has also provided incentives in the form of exemption of ITA 22 on Imports, and a maximum reduction of 50% of ITA 25 for certain industries.


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