The Director General of Taxes (DGT) determines companies that use the Collective Investment Contract (KIK) scheme which are formed for the benefit of Estate Investment Fund (DIRE) as low-risk taxpayers, so they may apply for preliminary restitution.
The application for restitution or refund of the preliminary Value Added Tax (PPN) overpayments can be submitted during the real estate acquisition tax period, as stipulated in the Regulation of the Director General of Taxes (Perdirjen) Number PER-04/PJ/2021, which was released on 16 March 2021.
The regulation is an amendment to Perdirjen Pajak Number PER-15 / PJ / 2018 which is considered unable to provide legal certainty for VAT-Registered Persons or Special Purpose Companies (SPC) that use certain Collective Investment Contract Scheme in real estate investments.
Upon the request for restitution from SPC or KIK, the tax authority will then proceed with research, by examining a number of things such as:
- Has been designated as a low-risk VAT-Registered Persons
- Completeness of periodic VAT Returns along with its attachments
- Input Tax crediting is in the form of VAT on the acquisition of Real Estate during the Application Tax Period
- VAT has been written and calculated correctly
- VAT has been paid
The Criteria is Expanded
Preliminary restitution facilities can actually be provided to taxpayers who are considered to be low-risk or taxpayers with certain criteria as determined by the government. The low-risk taxpayers include:
- Companies whose shares are traded on the Indonesia stock exchange
- Companies whose majority shares are directly owned by the central or local government
- VAT-Registered Persons who are designated as the Major Customs Partner (MITA)
- VAT-Registered Persons who are designated as the Certified Economic Operator (AEO)
- Manufacturers or producers other than the previous VAT-Registered Persons
However, in the latest regulations, the government has expanded the scope of criteria of companies that can apply for preliminary restitution, by adding pharmaceutical wholesalers and distributors of medical devices as well as companies whose 50% share is owned by State-Owned Enterprises (SOEs).
Pharmaceutical wholesalers who can apply for, among others, have a pharmacy distribution certificate or pharmaceutical wholesaler license, and have a Good Distribution Practices Certification for Pharmaceutical Products
Meanwhile, medical device distributors who may apply must have a medical device distribution certificate or medical device distributor permit as well as a Good Distribution Practice for Medical Devices (GDPMD).
For companies whose shares are 50% owned by SOEs, may apply for preliminary restitution provided that the percentage of ownership is listed in the consolidated financial statements of the last year prior to filing.
In addition, the financial statements are consolidated with the financial statements of the Holding SOEs in accordance with generally accepted accounting principles.
Meanwhile, companies with certain criteria are those that meet the following:
- Be on time in submitting SPT
- Do not have tax arrears for all types of taxes, except tax arrears that have obtained permission to pay in installments or postpone tax payments.
- Financial statements are audited by a public accountant
- Never been convicted of committing a tax crime
Determination of companies that are low risk or meet the elements as taxpayers with certain criteria can be done in an ex officio by the Head of the Tax Office (KPP) or based on an application.
An occupational determination can only be made to entrepreneurs who are Major Customs Partner (MITA) and Certified Economic Operators (AEO) as long as the data on the determination of the entrepreneur as MITA of Customs or AEO is available on the database of the Directorate General of Taxes.
If it turns out that the determination of MITA of Customs or AEO is not valid, the DGT will revoke its status as a low-risk taxpayer.
Meanwhile, the determination of low-risk taxpayers for companies listed on the Indonesia stock exchange, SOEs, Regionally Owned Enterprise (BUMD) companies, manufacturers or producers, pharmaceutical wholesalers, medical device distributors, companies whose 50% shares are owned by SOEs or BUMD companies, as well as SPC or KIK under the KIK scheme are carried out based on application.