The Pandemic Is Not Over, Sri Mulyani Agrees To Extend The Health Tax Exemption Period Until The End Of This Year

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani approved the tax exemption policy for the health sector to be extended until December 2022.

This is stated in the Minister of Finance Regulation (PMK) No. 113/PMK.03/2022 regarding health incentives and PMK-114/PMK.03/2022 regarding tax incentives for taxpayers affected by the pandemic.

The Director of Counseling, Services and Public Relations at the Directorate General of Taxes at the Ministry of Finance Neilmaldrin Noor said that this step was a form of the government's alignment with taxpayers (WP) affected by the COVID-19 pandemic.

"The government wants with existing support that the recovery and handling of the pandemic will be faster," he said in a press statement quoted on Monday, July 25.

Neil ensured that the provisions in the previous regulation which ended on 30 June will apply in its entirety until the close of the next 2022 period.

"For all the types of incentives that have been extended, there is no change," he said.

According to Neil, PMK-113/PMK.03/2022 contains incentives for VAT borne by the government (DTP) for the delivery of goods needed in the context of handling the COVID-19 pandemic, exemption from collection of Article 22 Income Tax (PPh) imports.

Then, exemptions from the collection of Article 22 Income Tax, and PPh facilities for human resources in the health sector, are all extended until December 31, 2022.

The same also applies to tax incentives contained in PMK-114/PMK.03/2022, exemption from collection of Article 22 Import PPh (72 KLU), reduction of Article 25 PPh installments (156 KLU), and final PPh on construction services ( DTP), all extended until December 2022.

"In addition to regulating the extension of the tax incentive period, the two PMKs also have several changes to the provisions," he said.

Neil detailed that PMK-113/PMK.03/2022 also regulates several main changes from the previous rules. Some of the main points of these changes are relaxation of reporting of replacement tax invoices for tax invoices for 2021 and 2022 to no later than 31 December 2022 and 31 December 2023, confirmation for taxpayers to collect VAT payable if data and/or information are obtained that the utilization of the facility does not meet the requirements.

Then, confirmation to taxpayers to only be able to choose to take advantage of exemption from the imposition of VAT on vaccines, drugs, and other goods or take advantage of the VAT incentives in this PMK, as well as confirmation to re-apply for a Certificate of Exemption to be able to take advantage of this incentive.

Meanwhile, for PMK-114/PMK.03/2022 the changed provisions are changes to the reporting party on the realization of final PPh on DTP construction services.

"If previously it was a tax cutter, namely the work unit that made payments in the implementation of the Program for the Acceleration of Improved Irrigation Water Use (P3-TGAI), now the person in charge is the Director General of Water Resources, Ministry of Public Works and Public Housing," concluded Neil.