Indonesia Tax Changes | International tax review


Certificate of verification of domicile in tax audits and tax opposition

The Director General of Taxes published Circular Letter No. SE-35 / PJ / 2021 on May 31, 2021 concerning the “Guidelines on the implementation of the verification of the domicile certificate (CoD) during the tax audit processes, d ‘tax objection and reduction or revocation of Tax Assessment Notice’.

The purpose of this regulation is to confirm that the CoD of a foreign taxpayer, provided during the above-mentioned procedure, can still be considered as the basis for the application of the provisions of a tax treaty. The CoD verification process must meet both formal requirements (as defined in PER-25 / PJ / 2018) and material requirements.

Reputable exporters and importers

The Minister of Commerce issued Minister of Commerce Regulation No. 17/2021 on April 1, 2021 stipulating criteria for reputable exporters and importers, effective June 1, 2021.

Arrangements can be obtained by submitting an online application for exporters and importers meeting certain requirements, or already obtained recognition as Authorized Economic Operators or Customs Principal Partners (MITA) from the Director General of Customs or the excise or the Primaniyarta Award from the Minister of Commerce. from year 2018.

This provision allows exporters and importers to obtain application approval for restricted exports and imports and to remove expert report requirements for products.

Self-declaration of real estate and property taxes

On May 17, 2021, the Minister of Finance of the Republic of Indonesia issued the Regulation of the Minister of Finance No. 48 / PMK.03 / 2021 Regarding the Procedure for Registering, Reporting and Collecting Data on Objects of property and property tax (PBB) for plantation, forestry, oil and gas extraction, mining for geothermal and mineral / coal extraction and other sectors, effective July 16, 2021.

Previously, for the PBB, the tax office sent a tax object notification letter (SPOP) about the tax or to the taxpayer, which must be completed and returned to the tax office. The tax office would then determine the amount of the NJOP (estimated land value).

In PMK-48, the taxpayer, in the sectors of activity described above, must register tax objects, through an online or written request, to be provided with a letter of notification of registration of real estate and property tax (SKT PBB).

In the event that a taxpayer does not register a request, the head of the tax office will automatically issue an SKT PBB on the basis of an audit or administrative verification.

Legal services for micro and small businesses

The Minister of Finance issued Regulation No. 49 / PMK.02 / 2021 Concerning the Types and Rates of Non-Tax Government Revenue Applicable to the General Directorate of General Legal Administration of the Ministry of Law and Human Rights (PMK-49), effective from May 10, 2021.

PMK-49 is intended to facilitate business and the simplification of investments and trading activities for micro and small enterprises, which have a maximum working capital of between IDR 1 billion (approximately $ 69,275) and IDR 5 billion. . The relevant rate for certain types of legal assistance ranges from IDR 50,000 to IDR 1 million.

Endy Arya Yoga

Partner, NGV Consulting Services

Irma Batubara

Director, NGV Consulting Services

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