Report & Correction of PPh 21 DTP Incentives Can Still Be Until March 31, 2022

The issuance of the Minister of Finance Regulation Number 03/PMK.03/2022 explains that there are only three types of Income Tax incentives (PPh) that are extended until 30 June 2022. The PPh 21 DTP incentives are not included in the types of incentives that are extended in 2022. Then, what are the next terms? Check out the following description!

DJP Neilmaldrin Noor as the director of counseling, services, and public relations of the DGT stated that the reason why the PPh 21 DTP incentive was no longer given in 2022 was that with the enactment of Law Number 7 of 2022 concerning the Harmonization of Tax Regulations there was a facility to increase the layer of taxable income at a rate of 5% which was previously Rp. 50 million now rose to Rp 60 million. So that it makes the lower-middle-class people enjoy the lower limit of the PPh 21 rate. However, the Employer, Taxpayer, or Tax Withholder who has not submitted a report on the realization of incentives or correction of the PPh Article 21 incentive report is borne by the government,

Then, what incentives will be extended in 2022?

  1. Article 22 Import Income Tax Incentives

Article 22 Import PPh which is collected by foreign exchange banks or the Directorate General of Customs and Excise when the Taxpayer imports goods, is exempted from collection to Taxpayers who have a business field classification code that gets incentives for exemption from Article 22 Import PPh. The business field classification code is a business field classification code as stated in the tax administration data ( Masterfile )). Then the exemption from PPh collection is given through a certificate of exemption from Article 22 Import PPh collection. Do not forget that Taxpayers who have obtained the exemption of Article 22 Import PPh must submit a report on the realization of the exemption of Article 22 Import PPh every month through certain channels on the DJP Online page no later than the 20th of the following month after the end of the Tax Period.

  1. Article 25 Income Tax Installment Incentives

Taxpayers who have a business field classification code that gets incentives for reducing the number of installments for PPh Article 25 are given a reduction in the number of installments for PPh Article 25 by 50% (fifty percent) of the installments for PPh Article 25 which should be payable. Similar to the import PPh 22 incentive, the business field classification code is a business field classification code as stated in the tax administration data ( Masterfile ). Furthermore, the Taxpayer submits a notification to the Head of the KPP where the Taxpayer is registered through certain channels on the online DGT website. The report on the realization of the reduction in the amount of Article 25 Income Tax installments must be reported every month through certain channels on the DJP Online website no later than the 20th of the following month after the end of the Tax Period.

  1. Construction Services Final PPh Incentive

Incentives for Final PPh Construction Services borne by the government are given on income from the construction service business based on the laws and regulations governing PPh on income from the construction services business subject to PPh obtained by the Taxpayer Recipient of P3-TGAI. The Tax Withholder must submit a report on the realization of the final PPh borne by the government for each Tax Period through certain channels on the DJP Online page. Then the Tax Withholder must submit a report on the realization of the final PPh borne by the government for each Tax Period and a report on the realization of the correction no later than September 30, 2022.

However, before taking advantage of the import PPh 22 incentive and/or the PPh 25 installment incentive, make sure you have reported the 2020 Annual SPT. 

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But for companies that have PKP and the number of transactions is very large, the premium package of IDR 10,000,000 per year is suitable for you! With this package, you can issue up to 1000 Invoices & 1000 Bupot per month, Taxomatic PPh Unification up to 100 Bupot per month. Then, free tax management (company tax PPh and monthly VAT) INCLUDING the management of PPh 21 employees and annual corporate tax returns. Not only that, every time you take a premium package on Tax.io you will also get a dedicated account manager for assistance

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