Ease of Doing Business in Taxation Cluster

As one of the efforts to strengthen the Indonesian economy and to encourage investment in the midst of a global economic slowdown, in order to absorb the widest possible workforce, it is necessary to amend provisions in the Taxation Law, both the KUP Law, the Income Tax Law, and the VAT Law, in an immediate time.
The amendment to the taxation provisions has been initiated by proposing the Omnibus Law Bill on Taxation and has a goal that supports and is in line with the objectives of the Job Creation Bill in creating the widest possible job opportunities. Therefore, this taxation provision is included as part of the Ease of Doing Business Cluster of the Job Creation Bill to support the widest possible job creation through improving the business climate in Indonesia.
In addition, in order to support national development, it is necessary to maintain and increase tax revenues through increased investment, voluntary compliance, legal certainty, and business climate justice.

The corporate income tax rate has decreased gradually to 22% (Tax Year 2020 & 2021) and 20% (Tax Year 2022 & onwards), and 3% lower for Go Public Taxpayers. ► It has been regulated in Law Number 2 of 2020.
Abolition of domestic income tax on dividends.
PPh non-object settings on:
1. Profit Share / SHU of Koperasi;
2. Hajj funds managed by the Hajj Financial Management Agency (BPKH);
Room for adjustments to Article 26 Income Tax Rates on Interest.
Equity participation in the form of assets is not subject to VAT.
Certain income (including dividends) from abroad is not subject to PPh (income tax) as long as it is invested in Indonesia.

Relaxation of Input Tax crediting rights for Taxable Entrepreneurs.
Reset:
1. tax administrative sanctions,
2. interest reward,
with reference to the reference interest rate

Transactions of coal includes in VAT payable.
Consignment does not include submission of BKP (Taxable goods).
Non-PPh (Non income tax) objects for the remaining funds from Social and Religious Agencies (as well as educational institutions).
Tax penalties that have been decided are no longer issued tax assessments.
Issuance of Tax Billing Letter (STP) expires in 5 years.
STPs can be issued to collect interest in return that should not be awarded.
Determination of Individual Tax Subjects:
1. Indonesian citizens and foreigners living> 183 days in Indonesia become Domestic Tax Subjects.
2. The imposition of PPh for foreigners who are Domestic Tax Subjects with certain expertise is only on income from Indonesia.
3. Indonesian citizens who are in Indonesia <183 days can become foreign tax subjects with certain conditions.

Tax on Electronic Transaction:
1. VAT collecting platform designation,
2. Imposing tax on foreign tax subjects for electronic transactions in Indonesia. ► It has been regulated in Law Number 2 of 2020.
Inclusion of NIK (National Identity Number) of buyers who do not have a NPWP (Tax Identification Number) in the Tax Invoice.