Government Updates UN Discount Rules, Valid From Next Year

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) replaces the Regulation of the Minister of Finance Number 82/PMK.03/2017 or (PMK82) with Regulation of the Minister of Finance Number 129 of 2023 or (PMK-129) concerning the Provision of Land and Building Tax Reduction (PBB).

Through this change of PMK, it is possible for the Ministry of Finance to provide UN discounts on the plantation, forestry and mining sectors (PBB P3) affected by the disaster.

This rule will take effect after 30 days of promulgation from November 30, 2023, aka January 1, 2024.

The UN reduction was given for two conditions, namely the first in reducing the PBB for taxpayers who suffered commercial losses and liquidity difficulties for two consecutive years.

For this category, the UN reduction is at the highest at 75 percent.

Second, the reduction of the PBB is also given to taxpayers whose tax objects are subject to natural disasters or other extraordinary reasons.

For this category, taxpayers have the potential to accept a UN reduction of up to 100 percent.

Director of Counseling, Services, and Public Relations Dwi Astuti said that the PMK changes aim to improve administrative governance and provide more legal certainty, convenience, and services in reducing Land and Building Taxes (PBB).

"The improvements made include adjustments to tax objects that can be given a reduction in the UN, additional electronic channels in submitting and completing applications, and arrangements related to the provision of UN reductions by position," Dwi said in his official statement, quoted Monday, December 18.

Dwi said that the provision of PBB reduction is a form of government support for Taxpayers (WP) who have difficulty paying off their UN obligations or because tax objects owned by taxpayers are subject to natural disasters or other extraordinary reasons.

Meanwhile, taxpayers who have difficulty making PBB payments are taxpayers who experience commercial losses and liquidity difficulties in 2 (two) consecutive years.

The arrangement is perfecting the provisions in PMK-82 by providing a more adequate explanation of commercial losses and liquidity difficulties so as to provide more legal certainty in granting UN reductions.

In addition, PMK-129 also provides convenience for taxpayers because taxpayers who have UN arrears are given the opportunity to propose a reduction in UN.

"Thus, even though it aims to accommodate the difficulties of taxpayers, this PMK is prepared more on target and continues to encourage the participation of taxpayers in supporting tax revenues," he explained.

It should be noted that the UN in question in this regulation is PBB P5L, namely the United Nations in addition to rural and urban UN (PBB-P2). Management of the PBB-P2 is carried out by local governments.

"With the issuance of this PMK, the previous regulation, namely PMK-82, was revoked and declared invalid," said Dwi.

The following are any points that have changed in PMK 129/2023:

In PMK 129/2023, taxpayers who have arrears can be given the opportunity to apply for a reduction in the UN. Meanwhile, the improvement is carried out, namely certain conditions for taxpayers who experience commercial losses and liquidity difficulties for two consecutive years.

Meanwhile, in the previous PMK-82, the application for this discount was enough with the bookkeeping of the calendar year before the submission year.

In addition, another change occurred, namely the Directorate General of Taxes (DJP) will assess the application based on smooth assets, while in the previous regulation with cash obtained from business activities.

In addition, the application period was also extended from initially a maximum of six months since the occurrence of natural disasters, turning into being proposed in the year of natural disasters or other extraordinary causes.

The other changes include the submission requirements, namely taxpayers, not having UN arrears. Where, in the latest regulation, the application requirements are removed.

Furthermore, PMK 129/2023 also allows applications to be made through electronic channels and the authority to grant UN reductions to the Head of the DGT Regional Office to research and provide UN reduction decisions on a position basis.