The government has again increased the number of business sectors or Business Classification (KLU) that are eligible for tax incentives, in the context of dealing with the Corona Virus Disease 2019 (Covid-19) pandemic.
In fact, previously the number of KLU taxpayers who were allowed to use the facility had been reduced. However, according to the government, the recipients of incentives need to be expanded again in order to accelerate economic recovery following the Covid-19 pandemic.
The policy is contained in the Minister of Finance Regulation (PMK) No. 149/PMK.03/2021 which revised PMK number 82/PMK.05/2021 regarding changes to PMK number 9/PMK.05/2021.
However, this expansion is selective and only limited to three types of incentives, namely the exemption of Income Tax Article (ITA) 22 on imports, a 50% reduction in ITA 25 installments, and a Value Added Tax (VAT) preliminary refund.
In fact, previously the government has provided other tax incentives such as government-borne (DTP) ITA 21 borne and government-borne final income tax. However, the recipients of the two types of incentives did not change.
Previously, the list of KLUs that were entitled to receive the reduction facility of ITA 22 on import amounted to 132 now to 397 KLUs. Despite being added, the number of KLUs is still below the initial provision of 730 business sectors.
Meanwhile, the installment reduction facility of ITA 25 is now given to 481 KLUs, higher than the previous provision of 261 KLUs, but still below the initial provision of 1,018 KLUs.
While the VAT preliminary refund facility can now be enjoyed by 229 KLUs, an increase from the previous regulation of 132 KLUs, but still below the number of recipients in the first provision, which is 725 KLUs.
The complete list of added KLUs as incentive recipients can be seen in the attachment of PMK Number 146/PMK.05/2021. While, the following is the change in the number of incentive recipients during the Covid-19 pandemic:
|Incentives||PMK 23/ 2020||PMK 44/2020||PMK 86/2020||PMK 9/2021||PMK 82/2021||PMK 149/2021|
|Government-borne Income Tax Article 21||440 KLUs||1.062 KLUs||1.089 KLUs||1.189 KLUs||1.189 KLUs||1.189 KLUs (unchanging)|
|Income Tax Article 22 on import||102 KLUs||431 KLUs||721 KLUs||730 KLUs||132 KLUs||397 KLUs|
|Income Tax Article 25||102 KLUs||846 KLUs||1.013 KLUs||1.018 KLUs||216 KLUs||481 KLUs|
|VAT Refund||102 KLUs||431 KLUs||716 KLUs||725 KLUs||132 KLUs||229 KLUs|
|MSME Final Income Tax||-||MSME Taxpayer||MSME Taxpayer||MSME Taxpayer||MSME Taxpayer||MSME Taxpayer|
Starting in October
Companies included in the additional KLU list can benefit from the October 2021 tax period.
Although the new regulation is released at the end of October 2021, companies can take advantage of the facility for the October tax period. To do this, the company only needs to submit a notification on the use of the exemption facility of ITA 22 on import and the reduction of ITA 25 installments, not more than 15 October 2021.
As for the VAT preliminary refund facility, the company can submit a VAT tax return for the October to December 2021 tax period, no later than 31 December 2021.