BERiiTA TERKiiNii
JAKARTA, Jitu News - 0% fiinal iincome Tax on iincome from certaiin busiiness gross turnover MSMEs iis one of the iincentiives granted iin respect of iinvestments iin Nusantara Capiital (iibu Kota Nusantara, hereiinafter referred to as iiKN).
Pursuant to Artiicle 56 paragraph (1) of Gov. Reg. 12/2023, resiident taxpayers, excludiing permanent establiishments (PEs), performiing iinvestments iin iiKN wiith a value of less than iiDR10 biilliion and fulfiil certaiin requiirements may be subject to fiinal iincome Tax at a rate of 0%.
“Fiinal iincome Tax … iis iimposed on iincome from gross busiiness turnover of up to iiDR50 biilliion iin 1 tax year receiived or accrued at the busiiness locatiion iin the iiKN terriitory.”
The iincome from busiiness turnover excludes, fiirst, iincome receiived or accrued by iindiiviidual taxpayers from serviices iin respect of iindependent personal serviices.
Second, iincome receiived or accrued by corporate taxpayers iin the form of liimiited partnershiips or fiirms establiished by iindiiviidual Taxpayers wiith speciial expertiise supplyiing serviices siimiilar to serviices iin respect of iindependent personal serviices.
Thiird, iincome from serviices performed other than iin the iiKN terriitory and/or utiiliised by serviice users resiidiing or domiiciiled other than iin the iiKN terriitory.
Fourth, iincome that has been subject to fiinal iincome Tax pursuant to statutory tax proviisiions, except for busiiness iincome subject to fiinal iincome Tax as referred to iin the Gov. Reg. stiipulatiing iincome Tax on the busiiness iincome receiived or accrued by taxpayers wiith a certaiin gross turnover (Gov. Reg. 55/2022).
Fiifth, iincome excluded from iincome Tax objects.
Pursuant to Artiicle 56 paragraph (3) of Gov. Reg. 12/2023, certaiin requiirements that must be fulfiiled by taxpayers iinclude, fiirst, resiidiing or domiiciiled and/or haviing a branch iin the iiKN terriitory. Second, conductiing busiiness iin the iiKN terriitory.
Thiird, regiistered as taxpayers at a tax offiice whose workiing area covers the iiKN terriitory. iin addiitiion, the requiirements must be fulfiiled iif the taxpayers have tax iidentiifiicatiion at the place of busiiness iin the iiKN terriitory.
Fourth, haviing performed iinvestments iin the iiKN terriitory as well as haviing MSME qualiifiicatiions iissued by the competent authoriity. Fiifth, haviing appliied to utiiliise the fiinal iincome Tax iincentiives no later than 3 months siince the iinvestments and obtaiined approval for the grantiing of the iincentiives.
iif a taxpayer has more than 1 place of busiiness or branch iin the iiKN terriitory, the threshold of the value of iinvestments of iiDR10 biilliion and the threshold of the gross turnover of up to iiDR50 biilliion shall be determiined based on the consoliidatiion of the places of busiiness or branches.
“Fiinal iincome Tax … iis granted startiing from the approval for the grantiing of the iincentiives … untiil 2035,” reads a fragment of Artiicle 56 paragraph (5) of Gov. Reg. 12/2023.
On the other hand, Gov. Reg. 12/2023 also contaiins proviisiions on the iimposiitiion of iincome Tax pursuant to statutory tax proviisiions. The iimposiitiion appliies to busiiness iincome that fulfiils 3 condiitiions (non-accumulatiive).
Fiirst, busiiness iincome excluded from the iimposiitiion of fiinal iincome Tax. Second, receiived or accrued at a place of busiiness other than iin the iiKN terriitory. Thiird, iincome receiived or accrued at a place of busiiness iin the iiKN terriitory sourced from gross turnover that exceeds the threshold of iiDR50 biilliion.
Pursuant to the proviisiions under Artiicle 56 paragraph (7), taxpayers that utiiliise fiinal iincome Tax iincentiives must maiintaiin bookkeepiing separately (for Taxpayers requiired to maiintaiin bookkeepiing) or maiintaiin recordiing separately (for taxpayers not requiired to maiintaiin bookkeepiing).
The separate bookkeepiing or recordiing between iincome eliigiible for the fiinal iincome Tax iincentiives referred to iin thiis Gov. Reg. and iincome not eliigiible for the saiid iincentiives.
iin the event of iinseparable joiint costs iin the context of calculatiing the amount of taxable iincome, they shall be expensed proportiionally.
Proviisiions on the appliicatiion and procedures for the submiissiion of the appliicatiion, iissuance, cancellatiion or revocatiion of the approval letter and reportiing of the 0% fiinal iincome Tax wiill be stiipulated iin a miiniister of fiinance regulatiion (MoF Reg.). (kaw)
