The number of Covid-19 cases increased yet again at the beginning of June 2022. As of July 26, 2022, the number of new cases recorded was 6,483 cases, which is the highest since March 28, 2022.
As a front line in handling Covid-19 cases, Health Sector Personnel is at high risk of being infected with Covid-19. Many health sector personnel were eventually infected with the virus. Taking this into consideration, as well as the recommendation of the Indonesian Technical Advisory Group on Immunization (ITAGI) in letter number ITAGI/SR/11/2022 dated 27 June 2022, the Director General of Disease Prevention and Control determined to provide the 2nd (second) booster dose of Covid-19 vaccination for health sector personnel. This was informed through Circular Letter Number HK.02.02/C/3615/2022.
The following conditions determine the implementation of the 2nd booster dose of Covid-19 vaccination:
- The 2nd dose of Covid-19 vaccination for health sector personnel will begin on July 29, 2022. The Covid-19 vaccine used is Covid-19 vaccine which has received Emergency Use Authorization (EUA) from the Food and Drug Supervisory Agency (BPOM) and ensured the availability of existing vaccines;
- The 2nd booster dose of Covid-19 vaccination is given at an interval of 6 (six) months after the 1st (first) booster dose of vaccination; and
- The 2nd booster dose of Covid-19 vaccination for health sector personnel is carried out at health service facilities and/or at the Covid-19 vaccination service post.
In addition, The Ministry of Finance has also determined the extension of the provision of tax incentives on goods needed in handling the Covid-19 pandemic and income tax facilities for health sector personnel by ratifying Minister of Finance Regulation Number 113/PMK.03/2022. These provisions are set on July 11, 2022 and come into force on the same date.
Previously, Covid-19 related tax facilities in the health sector were regulated based on the provisions in Minister of Finance Number 226/PMK.03/2022. This provision is given until June 2022. Given the need for incentives to deal with the impact of the Covid-19 pandemic and to support the acceleration of Covid-19 response, the government has extended the period for providing facilities until December 2022. Furthermore, tax facilities for the July 2022 period before this PMK are stipulated and still valid based on Minister of Finance Regulation Number 226/PMK.03/2022.
Changes to Tax Facility Provisions
The facilities provided in the latest provisions are similar to the previous provisions, which consist of:
- VAT facility is not collected on imports or VAT borne by the government on the acquisition of medicines, vaccines and vaccination support equipment, laboratory equipment, detection equipment, personal protective equipment, and/or patient care equipment for government agencies, hospitals, and/or other parties;
- VAT facility for the acquisition of vaccine raw materials and/or drugs for handling Covid-19 for the pharmaceutical industry that produces them
- VAT facility for the acquisition of vaccines and/or drugs for handling Covid-19 from the pharmaceutical industry producing vaccines and/or drugs for Taxpayers who receive them;
- Exemption of Income Tax Article 22 Import facility levies for government agencies, hospitals, other parties, third parties, or the pharmaceutical industry on imports and/or purchases of goods required in the context of dealing with the Covid-19 pandemic; and
- Health Sector Personnel receives the facility for imposing a 0% final tariff on additional income.
Furthermore, changes in VAT provisions are also found in the options for stamping and writing the Tax Invoice reference column. These provisions are in accordance with the recent Tax Invoice provisions regulated in Directorate General of Taxation Regulation Number PER-03/PJ/2022.
Another change lies in the provisions for Tax Invoices correction or replacement as regulated in Article 3A of Minister of Finance Regulation Number 113/PMK.03/2022. Taxable Entrepreneur is obliged to correct or replace Tax Invoice by making a replacement Tax Invoice if the Tax Invoice does not meet the requirements of stamps and/or errors in filling or writing the value of VAT.
Issuance of Tax Invoice Replacement on invoices submitted in 2021 and 2022 must be reported in the VAT Monthly Tax Return no later than December 31 of the following year. If it is discovered that the delivery does not comply with the provisions, Taxable Entrepreneur is required to collect the applicable VAT.
Furthermore, the government emphasized that it is not permitted to impose double VAT facilities on the delivery of medicines, vaccines and vaccination support equipment, laboratory equipment, detection equipment, personal protective equipment, and/or equipment for the treatment of patients whose delivery has benefited from VAT exemption in accordance with statutory provisions.
In terms of income tax provisions, in order to take advantage of the exemption for income tax article 22 import, a taxpayer who has previously applied for the income tax 22 Exemption Certificate must resubmit the application. Furthermore, taxpayers who have submitted the letter of recommendation must resubmit the application to the Ministry of Health to use the import VAT and income tax article 22 import facilities.
