20,000 Businesses File for Tax Relief amid COVID-19 Pandemic

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Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - The Ministry of Finance Directorate General of Tax has received more than 20,000 applications requesting for incentives or tax relief as a result of the COVID-19 pandemic, as of April 21, 2020. Of this number, around 4,634 applications were rejected because they did not meet the necessary requirements.

    “One of the (unfulfilled requirements) is their Business Sector Classification (KLU) not being up to par with the Minister of Finance Regulation (PMK),” said Tax Director General Suryo Utomo in an online press conference in Jakarta, on Wednesday, April 22, 2020.

    In addition, a number of the applications have been rejected as they have not filed their Annual Notice from the year 2018 as a basis to determine the business’ KLU.

    Previously, Minister of Finance Sri Mulyani Indrawati had issued a number of tax incentives to dampen the impacts of the COVID-19 outbreak, which has been penned in Minister of Finance Regulation number 28 of 2020 and Minister of Finance Regulation number 23 of 2020.

    More specifically, of these 20,000 applications, the majority are for Income Tax Incentives Article 21. In this category, the Directorate General of Taxes received 12,062 applications. Of that total, 9,610 applications were approved and 2,452 were rejected.

    Furthermore, Income Tax Article 22 on Imports with 3,557 applications. Of that amount, 2,905 were accepted and 652 were rejected. Then, Income Tax Article 23 with 53 applications and all of them are accepted. The last is Income Tax Article 25 with 4,346 applications. "2,816 were accepted and 1,530 were rejected," Suryo added.

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