The Minister of Finance, Sri Mulyani Indrawati, released three new taxation policies, which are: shorten restitution process, joint inspection guidelines for profit sharing, and simplification the procedures of PPN and PPnBM free for the representative of foreign and international agencies. The released of this policy is expected to increase legal certainty, improve the ease of business, and encourage the efficiency of tax administration.
In order to accelerate the provision of restitution, the extension of Taxpayer criteria is entitled to get a preliminary refund of tax overpayment i.e Taxpayer with good compliance history, Taxpayer with small refund value and Taxable Entrepreneur with low risk.
In this new policy, the overpayment entitled to acceleration of restitution has been increased 900 percent, so for the return of personal income tax for non employee from initially Rp10 million to Rp100 million, for corporate income tax from Rp100 million to Rp1 billion and for bussines tax from Rp100 million to Rp1 billion. The category of Small Medium Enterpreneurs are also automatically expanded to include major exporters of customs agents as well as the exporters of authorized economic operators.
In addition, the research procedure held by the Directorate General of Taxes is also simplified to accelerate the process of preliminary return of tax overpayment. The ease of restitution acceleration policy is a special facility for Taxpayers who have a good record of compliance and a relatively low level of risk on state revenues.
This special facility will make benefit to the company’s cash flow so it is encourage Taxpayers to be more compliant in paying their tax obligations. This policy also provides an opportunity for Taxpayers to apply the facility of restitution acceleration in order to improve their business and reduce the cost of long process and time of restitution inspection.
For the government, this policy will release the human resources who are currently being used for restitution checks they can focus on high risk taxpayers. Meanwhile, the release of the guidelines on joint inspection of Production Sharing Contracts has done to increase the effectiveness and efficiency, and also to provide legal certainty in the implementation of inspection on Cooperation Contract of Production Sharing Contract with cost recovery.
Through this policy, the examination on the fulfillment of profit sharing and the tax of oil and gas is jointly operated among the Directorate General of Taxation, the Finance and Development Supervisory Board, and the Special Unit for Upstream Oil and Gas Business Activities. The examination of the joint Contract Contractor (KKKS) will also be conducted by the Joint Task Force as a representative of the Indonesian government.
This policy will increase legal certainty for KKKS because there is only one examination so it can reduce the potential for disputes and cut the cost of compliance. For the government, this policy will increase the effectiveness and efficiency of inspection and encourage the ease of bussines process and investment in the sector of upstream oil and gas.
For simplification of free procedures of PPN or PPnBM for representatives of foreign countries and international board, applicable to the conduct of activities attended by head of state and head of international board. On the new procedure, the free facility may be obtained without the Certificate of Free from the Directorate General of Taxation and a Letter of Recommendation from the Minister of Secretary of State.
For that reason, the organizer of the activity simply attach a letter of approval from the head of relevant Ministry, accompanied with the detailed list of goods or services along with the identity of seller and provider.
Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.
SMART Legal Consulting is an Indonesian Legal Process Outsourcing provider. SMART has assisted Clients in establishing Foreign Direct Company and Representative Office more than 250 entities with 100% success rate. We also assisted local and multinational companies in handling their corporate legal matters, including providing legal retainer services for day to day business operations.
Contact Us Now to get your legal solution for your business goals.
Email : firstname.lastname@example.org
Hotline/Whatsapp : +62821-1234-1235
Office : +6221-80674920