Great Day HR and MUC Consulting Encourage Businesses to Immediately Take Advantage of Tax Incentives

JAKARTA. To encourage economic recovery in the midst of a pandemic that has not yet ended, the government has decided to extend a number of tax incentives, and even add the types. The use of these tax incentives will certainly provide benefits for business actors. The various benefits of these tax incentives are discussed in detail in the Webinar entitled "Extension of Tax Incentives 2021, What Benefits Will Business Entities Get?" on Tuesday (7/9).

The webinar, which is a collaboration between Great Day HR Indonesia and MUC Consulting, presented two speakers, namely MUC Consulting's Tax Compliance Manager Winni Hidayanti and MUC Consulting's Tax Supervisor Evy Suryani.  Meanwhile, Verencia Augustra from Great Day HR Indonesia acted as moderator

On the occasion, several incentives were discussed, among others, Income Tax incentives Article (ITA) 21, ITA 22, ITA25, Final Income Tax for MSMEs, VAT on store rent, VAT refunds, and incentives related to donations.

Related to a number of extended incentives, such as ITA 21, ITA 22, ITA 25, MSMEs' Final Income Tax, to VAT refunds, all of them are regulated in Minister of Finance Regulation (PMK) Number 82/PMK.03/2021. The PMK is an amendment to PMK 9/PMK.03/2021. Evi explained that in general, the provisions and procedures for each incentive did not change much from the previous rules. However, there are several transitional provisions, such as the provision that the employer who will use the facility must re-submit the notification of incentive utilization, until the relaxation of the submission of the corrected realization report.

Then, regarding the amendments from the previous rules, in addition to the extension of the incentive period which is valid until December 2021, there are also changes, including in terms of the criteria for the recipient of incentives.

"For example, for ITA 21 borne by the government, if previously 119 Business Classifications (KLU), taxpayers who receive Import Facility for Export Purposes (KITE) and Bonded Zones were able to receive incentives, for the latest regulation, KITE taxpayers and Bonded Zones are no longer entitled to receive incentives," she explained.

Meanwhile, the government-borne Final Income Tax incentive for MSMEs, Winni said that the only thing that changed is the validity period. The rest is the same as the previous rule.  "As long as they are still declared as the recipient of the incentive, then they are still entitled to the incentive," she said

Tax Incentive Benefits

Winni also emphasized that business entities should not hesitate to immediately take advantage of these fiscal facilities. She explained, there are a number of benefits that can be obtained by business actors from the use of the incentives. She gave an example, from the government-borne ITA 21 incentive, the employee's salary will automatically increase, and this will have an impact on their purchasing power.

Then for the use of ITA 22 on import incentive, Winni continued, the company's burden will also be decreased. In addition, there are additional funds that can be used for more productive expenditures, as well as reducing the potential results of the calculation of overpayment of corporate income tax.

As for the government-borne incentive for Room Rent, Winni also appealed to retailers to immediately take advantage of this tax facility. Because the time period is shorter when compared to other tax incentives. Government-borne VAT is given on rents for August 2021 to October 2021 which are billed in August-November 2021. "For that, it should be immediately utilized because it can help reduce the company's tax burden and there are additional funds for other expenses," Winni added. (Ken)