Excellent Tax Service During the Covid-19 Pandemic Period

Background

            The Covid-19 pandemic since the beginning of 2020 has put enormous pressure on the economic and health sectors. A press conference delivered by the Minister of Finance of the Republic  Indonesia Sri Mulyani on April 1, 2020 said that the projected global economic growth in 2020 was negative or experiencing a recession. To overcome this problem the government has adopted a number of policies to prevent a crisis due to the Covid-19 pandemic. The Government has issued Government Regulation in Lieu of Law of the Republic of Indonesia Number 1 of 2020 concerning State Financial Policy and Financial System Stability for Handling the Corona Virus Disease 2019. Government Regulation contains various state financial policies, including taxation. In the field of taxation, the tax incentives stipulated in the Regulation of the Minister of Finance of the Republic  Indonesia  Number 44 / PMK.03 / 2020 concerning Tax Incentives for Taxpayers Affected by Pandemic Corona Virus Disease 2019 were set on April 27, 2020

Prime Tax Servise Policy in the form of Tax Incentives made by the Government During the Covid-19 Pandemic Period in Accordance with the Regulation  of the Minister of Finance of the Republic Indonesia Number 44 / PMK.03 / 2020

            The policy of tax incentives incentives for taxpayers affected by the Covid-19 pandemic is a form of excellent service or quality service in taxation taken by the government that is encouraging the growth of creativity, initiatives, and community participation in development and improving the welfare of the wider community. This tax incentive and relaxation policy is one of the seven prime taxation service activities, which is affordable, meaning that taxes paid by taxpayers must pay attention to the level of people's ability and purchasing power.

Excellent taxation services in the form of tax incentives for taxpayers imposed by the government during the Covid-19 Pandemic include:

1. Income Tax Article 21 Incentives

    Article 21 Income Tax is borne by the government during the April 2020 tax period to the      September 2020 tax period.

2. Income Tax Article 22 Incentives

    The government exempts PPh Article 22 Import for 6 months

3. Income Installment Incentives Article 25

    Reduction of Income Tax Article 25 by 30% for 6 months

4. VAT incentives

Taxpayers or companies engaged in exporters and non-exporters, can take advantage of VAT incentives in the form of acceleration of restitution for 6 months.

5. UMKM Tax Incentives

Taxpayers who are SMEs with a certain gross circulation in accordance with Government Regulation Number 23 of 2018, and deposit the Final Income Tax of 0.5% of the total gross circulation, get incentives of Final Income Tax borne by the Government. These MSME tax incentives are given for the April 2020 Tax Period to the September 2020 Tax Period.

Excellent Tax Service Policy Tax Relaxation During the Covid-19 Pandemic Tax relaxation policies provided by the government in accordance with PMK Number 44   / PMK.03 / 2020 include:

1. Decrease in Corporate Income Tax Rates

   The general tarif, which was originally 25%, to 22% for 2020 and 2021, to 20% in 2022. While for publicly listed companies with a total number of shares traded on the stock exchange in Indonesia at least 40%, and fulfills certain conditions, can get a rate of 3% lower than the general rate of corporate income tax. So, the Go Public Agency's PPh rate is 19% for fiscal years 2020 and 2021, then 17% starting in tax year 2022.

2. Extension of Tax Application / Settlement Time

3. Provision of Customs Facilities

    Provide exemption or relief of import duties in the context of handling the Covid-19 pandemic.

4. Taxation of Electronic Transactions

  The Government will collect VAT on the utilization of Intangible Taxable Goods and / or     Taxable  Services by foreign platforms through Trade through Electronic Systems

5. Extension of Personal Annual Tax Return Report Period and VAT Period SPT

   Reporting of Personal Annual Tax Return which was started on March 31, 2020, will become April 30, 2020. As for the reporting of the Annual Tax Return, February 2020 will be delayed until April 30, 2020.

Conclusion

The prime taxation service policy in the form of tax incentives and relaxation during the Covid-19 pandemic period is important for the government to improve taxpayer compliance, in order to save the national economy and maintain the stability of the Government's financial system, to carry out public services and sustainable development.