The Overflow of Tax Incentives Continues

JAKARTA – The Directorate General of Taxes (DGT) of the Ministry of Finance (Kemenkeu) has extended a number of tax incentives until the end of 2021.

The tax incentive policy should end in June 2021. This is stated in Minister of Finance Regulation (PMK) number 9 of 2021 concerning Incentives for Taxpayers Affected by the COVID-19 Pandemic.

First, the Ministry of Finance has extended the government-borne article 21 incentives income tax. Thus, the income of employees with a maximum salary of Rp16 million per month will not be deducted until the end of this year.

Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said this decision was taken to support consumption among workers.

“We continue to pay attention to the tax incentives that are needed to push economic recovery,” said Suahasil in a written statement, Tuesday, June 22, 2021.

Then, the extended incentive is a 50% discount on corporate income tax article 25 for corporations. This policy value can provide additional space for the company’s cash flow until the end of this year.

The DGT of the Ministry of Finance is also still extending the final incentives income tax for Micro, Small and Medium Enterprises (MSMEs). Then, income tax article 22 imports and reduced value added tax (VAT) refunds until the end of this year.

Meanwhile, the Luxury Goods Sales Tax (PPnBM) incentive for new government-borne cars was extended until August 2021.

Meanwhile, the VAT on government-borne property for landed houses or flats with a maximum selling price of Rp2 billion has been extended until the end of this year.

Writer: Muhamad Arfan Septiawan