The COVID-19 pandemic has affected economic life globally. The decline in the world economy certainly affects economic life in Indonesia. The government has made several efforts in order to deal with COVID-19 pandemic. In the tax sector, the government provides relief to individual taxpayers in reporting Tax Return.
Previously, Directorate General of Taxes had closed services directly throughout Indonesia from March 16 2020 to April 5, 2020. Whereas every year the government sets limits for payment and reporting of Tax Return until March 31 2020. Due to COVID-19 pandemic, the limit for reporting and payment of Tax Return for individual taxpayers has been postponed until April 30, 2020.
This relief is accompanied by the exemptions of administrative sanctions. This is a definite step in dealing with COVID-19 pandemic in the country. These administrative sanctions apply to late submission of the 2019 Annual Individual Income Tax Return and payment of the underpaid tax amount in the 2019 Individual Income Tax Return.
Individual taxpayers who are entitled to this relief are taxpayers with criteria as quoted in the decision of the Director General of Taxes Number KEP-156/PJ/2020 regarding taxation policies in connection with COVID-19 pandemic.
- Individual taxpayers who keep books of the end of the financial year on December 31, 2019
- Individual taxpayers who are required to keep records, namely
-Individual taxpayers who carry out business activities or independent work in accordance with the provisions of taxation legislation are allowed to calculate net income using Net Income Calculation Norms, or
- Individual taxpayers who do not carry out business activities or independent work
-Individual taxpayers who are subject to final Income Tax, including those from businesses with certain gross turnover.
Taxpayers who submit Periodic Income Tax Returns for the February 2020 tax period, which should have a submission deadline on March 21, 2020, also receive relief. The deadline for reporting the Tax Return for the Income Tax period is February 2020 to April 30, 2020 without being subject to administrative sanctions.
The administrative sanctions that are released in the context of COVID-19 pandemic referred to in this review are administrative sanctions written in article 7 paragraph (1), article 9 paragraph (2b), article 14, article 36 paragraph (1) letter a of Law Number 6 of 1983 concerning General Provisions and Tax Procedures.
Such reliefs were offered by the Director General of Taxes to ease the burden of socio-economic impact on Taxpayers affected by COVID-19. Tax relief includes exemptions from the imposition of tax administration sanctions, extension of the deadline for submitting reports on the realization of the transfer and investment of additional assets, reports on the placement of additional assets, requests for objections, submission of requests for reduction or exemptions of second administrative sanctions, and reduction or cancellation of tax assessment letters or Second Tax Collection Letter.
administrative-sanctions
