Ministry Of Finance Hopes That Tax Incentives Can Awaken The Business World

Illustration. (Photo: Unsplash)

JAKARTA - The Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu) hopes that all tax incentives that have been provided by the government will be able to awaken the business world from the impact of the COVID-19 pandemic.

"We hope that it can be a positive stimulus for business actors to have wider flexibility in maintaining, increasing their business and expanding their business scale", said Director of Counseling, Services and Public Relations of the Ministry of Finance Neilmaldrin Noor in a webinar in Jakarta, quoted from Antara, Thursday 15 April.

Neil said that the revival of the business world from the pressures of the pandemic will make the economy continue to move in the long term, especially MSMEs, which contribute up to 60 percent of Indonesia's GDP.

He explained that to encourage the revival of the business world, especially MSMEs, the government has several times updated regulations related to tax incentives, namely the Minister of Finance Regulation Number 9/PMK.03/2021.

He explained that the regulation stipulates an extension of the time for tax incentives and is given the ease of utilizing a wider incentive.

Tax incentives have been in effect from April to December 2020 and continued until June 2021, while the expansion of tax incentives is classified into six forms of incentives.

The six forms of tax incentives include Government-borne PPh Article 21 (DTP), Final PPh MSMEs (UMKM) DTP, Final PPh on labor-intensive fields, especially in the construction sector DTP, exemption and collection of PPh Article 22 Imports, and deduction of Article 25 PPh installments.

"Lastly is the preliminary return for taxable entrepreneurs at low risk for taxpayers who submit periodic VAT SPT to be paid a refund of up to IDR 5 billion", he said.

Meanwhile, the realization of incentives for the business world in the PEN Program throughout 2020 which aims to support the economy, especially business actors in the real and financial sectors including MSMEs, has reached IDR 56.2 trillion.

"With this incentive, the MSME DTP income tax does not need to submit a certificate, it is enough to submit a realization report every month", he said.