News
The Provision of Tax Incentive During The Pandemic Exceeds the Ceiling

Wednesday, 22 December 2021

The Provision of Tax Incentive During The Pandemic Exceeds the Ceiling

JAKARTA. The realization of tax incentives in the national economic recovery program has exceeded the ceiling set in the 2021 State Budget (APBN).

Citing Bisnis Indonesia edition on Wednesday (22/12), until 17 December 2021, the incentives that have been absorbed are worth IDR 63.16 trillion. Meanwhile, the ceiling determined by the government is IDR 62.83 trillion, meaning that the realization of its use is already 100.5%.

Some of the tax incentives provided during 2021 include:

  1. Government-borne Income Tax Article (ITA) 21
  2. Government-borne MSME Final Income Tax
  3. Exemption of ITA 22 on import
  4. Reduction of ITA 25 installment
  5. Accelerated VAT refund
  6. Government-borne VAT on property
  7. Government-borne STLG on certain vehicles

From these facilities, the most widely absorbed facility is the reduction of ITA 25 installments realized at IDR 25.23 trillion to 58,057 taxpayers.

The high absorption of tax incentives is also directly correlated to the risk of leakage. As previously disclosed by the Audit Board of Indonesia (BPK) for the provision of fiscal incentives in 2020.

In addition, economic conditions in 2022 are expected to improve, so that incentives to sectors that show positive performance will be reduced.

Tightening will be done by selectively looking at business sectors that really need, in order to be on target. So that the fiscal condition of the government can be on track.

In addition, the government will stop providing STLG facilities for motor vehicles.

Although being tightened, the government acknowledges that incentives are still needed for the business world. To keep the process of economic recovery going.



Related

MSI Global Alliance

Global Recognition
Global Recognition | Word Tax    Global Recognition | Word TP
Contact Us

Jakarta
MUC Building
Jl. TB Simatupang 15
Jakarta Selatan 12530

+6221-788-37-111 (Hunting)

+6221-788-37-666 (Fax)

Surabaya
Graha Pena 15th floor
Jl. Ahmad Yani 88
Surabaya 60231

+6231-828-42-56 (Hunting)

+6231-828-38-84 (Fax)

Subscribe

For more updates and information, drop us an email or phone number.



© 2020 All Rights Reserved
Need Our Services?