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In order to reduce the economic burden of taxpayers due to the Covid-19 outbreak, the government through the Ministry of Finance (Ministry of Finance) has increased the number of business sectors that can receive tax facilities. In addition, the government also provides new facilities aimed at micro, small and medium enterprises (MSMEs).
The MSME tax facilities and facilities are as follows:
4. VAT incentives
Taxpayers operating in one of 431 specific industries, KITE companies, and companies in bonded zones, are designated as low risk PKP so as to get a restitution facility accelerated to a maximum overpayment amount of Rp 5 billion, without the requirement to carry out certain activities such as exports goods or services subject to tax, surrender to VAT collectors, or surrenders that are not subject to VAT collection. This facility was previously only given to 102 industry sectors and KITE companies.
5. UMKM tax incentives
MSMEs get a 0.5% final income tax facility (PP 23/2018) borne by the government. Thus the UMKM taxpayer does not need to make a tax payment and the tax collector or tax collector does not carry out the tax deduction or collection when making payments to MSME actors. For this reason, MSME actors must first obtain a PP 23 Certificate and must report the realization of the Final PPh DTP for each tax period.