PMK No. 44 / PMK.03 / 2020 as Expansion of Tax Insetiveness and Anticipation of the Economic Impact of Covid-19 Pandemic

Since mid-March 2020, the co-19 pandemic has hit Indonesia and resulted in a national economic slowdown. Various efforts have been taken by the government to minimize this impact, including efforts from the economic and financial sectors. This unfavorable condition has prompted the government to issue a number of economic stimulus packages or policies, one of which is fiscal. On March 21, 2020 PMK No. 23 / PMK.03 / 2020, but the PMK was revoked and replaced by PMK No. 44 / PMK.03 / Year 2020. The basic consideration is dynamics that are relatively fast and to be able to reach other sectors that were not previously regulated in PMK No. 23 / PMK.03 / 2020. As regulated in PMK No. 44 / PMK.03 / 2020, there are at least five (5) tax facilities that are regulated and are expected to benefit taxpayers in the Covid-19 pandemic.

First, the expansion of business field classification (KLU) as a recipient of tax incentive policies, which in the previous PMK was only 440 KLU, but in this PMK it increased to 1,062 KLU. The facilities in PMK 23/2020 are only given to KITE (Ease of Importation of Export Purpose), in PMK No. 44/2020, also added taxpayers in bonded zones as parties who can receive tax incentives.

Second, in the case of MSME Final Income Tax borne by the government (DTP). In PMK No. 23/2020, the party has not yet received tax incentive facilities. The presence of PMK No. 44/2020 has provided the facility that was originally planned to be in the form of MSME PPh at a zero percent rate. However, this technical experience has accelerated in the form of MSME incentives to become the Final PPh DTP.

Third, exemption from import tax article 22 previously only covers certain manufacturing sectors as many as 102 KLU and KITE taxpayers. PMK NO. 44 / PMK.03 / 2020 has restricted the reach of certain sector taxpayers to 431 KLU, KITE taxpayers still get facilities and add taxpayers to bonded zones.

               Fourth, the Facility in the form of a reduction of Article 25 income tax installments by 30 percent, in the previous PMK was only received by certain manufacturing sectors (102 KLU) and KITE taxpayer. The issuance of PMK no. 44 / PMK.03 / 2020 has made the surge of beneficiaries in certain sectors to 846 KLU, and the addition of taxpayers to bonded zones.

Another facility is a preliminary return of VAT as a low-risk PKP which was originally only aimed at certain manufacturing sectors totaling 102 KLU, now it can be submitted by certain sector taxpayers of 431 KLU and KITE taxpayer. This is certainly expected to help alleviate the difficulties of the cash flow felt by the taxpayer.

               Issuance of PMK No. 44 / PMK.03 / 2020 as a substitute for PMK No. 23 / PMK / 03/2020 is expected to have a positive impact on businesses, and overall taxpayers. This fiscal policy is also expected to be able to reach taxpayers more broadly and on target in terms of implementing tax incentives as one of the government's efforts to reduce the economic impact caused by the covid-19 pandemic.