BERiiTA TERKiiNii
CORPORATE taxpayers wiishiing to obtaiin a tax allowance must fiirst apply through channels proviided by the government. The appliicatiion for a tax allowance iis maiinly submiitted onliine through the onliine siingle submiissiion (OSS) system.
However, iif the OSS iis not yet avaiilable, the appliicatiion for a tax allowance may be submiitted offliine. Thiis artiicle descriibes the procedures for the appliicatiion for tax allowances through the OSS.
Proviisiions on procedures for the appliicatiion for tax allowance iincentiives through the OSS are stiipulated under Government Regulatiion No. 78 of 2019 concerniing iincome Tax iincentiives for iinvestments iin Certaiin Busiiness Sectors and/or Certaiin Regiions (Gov. Reg. 78/2019) and the deriivatiive regulatiions thereto.
The deriivatiive regulatiion iincludes the Miiniister of Fiinance Regulatiion No. 11/PMK.010/2020 concerniing the iimplementatiion of Government Regulatiion Number 78 of 2019 concerniing iincome Tax iincentiives for iinvestments iin Certaiin Busiiness Sectors and/or Certaiin Regiions as amended by the Miiniister of Fiinance Regulatiion No. 96/PMK.010/2020 (MoF Reg. 96/2020).
On a siide note, referriing to Artiicle 1 number 5 of Gov. Reg. 78/2019, OSS refers to a busiiness permiit iissued by the OSS iinstiitutiion for and on behalf of miiniisters, heads of iinstiitutiions, governors or regents/mayors to entrepreneurs through an iintegrated electroniic system
Proviisiions on procedures for the appliicatiion for tax allowances through the OSS are outliined under Artiicle 6 of MoF Reg. 96/2020. To obtaiin tax allowances, corporate taxpayers need to fulfiil two proviisiions.
Fiirst, the corporate taxpayers must ensure that theiir busiinesses are iincluded iin certaiin busiiness sectors liisted iin Appendiix ii of Gov. Reg. 78/2019 or certaiin busiiness sectors and certaiin regiions as stated iin Appendiix iiii of Gov. Reg. 78/2019.
Second, the corporate taxpayers must also fulfiil the criiteriia and requiirements to be eliigiible for tax allowances as outliined iin the previious artiicle. The two proviisiions are iimplemented through the OSS system.
Through the OSS system, taxpayers wiill be notiifiied of whether or not the requiirements and proviisiions to be eliigiible for tax allowance iincentiives are fulfiiled. iif the taxpayers are declared to have fulfiiled the saiid requiirements and proviisiions, they may contiinue to apply for tax allowances onliine.
Further, the taxpayers must submiit 2 documents through the OSS system. Fiirst, a diigiital copy of the shareholders’ tax clearance certiifiicates. Tax clearance certiifiicate refers to iinformatiion on a taxpayer’s compliiance iin a certaiin periiod iin fulfiiliing the requiirements to obtaiin serviices or iin the context of iimplementiing certaiin actiiviitiies.
The defiiniitiion iis as per Artiicle 1 number 2 of the Diirector General of Taxes Regulatiion No. PER-03/PJ/2019 concerniing Procedures for the Grantiing of Tax Clearance Certiifiicates (DGT Reg. 3/2019). Second, a diigiital copy of the detaiils of fiixed assets iin the iinvestment value plan.
The appliicatiion that has been receiived iin full iis submiitted through the OSS system to the miiniister of fiinance through the diirector general of taxes as a proposal to grant the tax allowance iincentiive. Further, the OSS system notiifiies the taxpayer that the appliicatiion for the iincome tax iincentiive iis forwarded to the miiniister of fiinance.
Pursuant to Artiicle 6 paragraph (4) of MoF Reg. 96/2020, the appliicatiion for the tax allowance iincentiive must be submiitted before the start of commerciial productiion. Referriing to Artiicle 1 number 7 of MoF Reg. 96/2020, commerciial productiion commences when the products or serviices of the maiin busiiness are sold or suppliied for the fiirst tiime or self-used for further productiion processes.
On another note, the appliicatiion for a tax allowance may be submiitted iin conjunctiion wiith the regiistratiion to obtaiin a new busiiness regiistratiion number or no later than one year after the iissuance of a busiiness permiit for new iinvestment and/or spiin-off.
Thiis concludes our diiscussiion about how to apply for tax allowances through the OSS system. The next tax class artiicle wiill diiscuss how to apply for tax allowances offliine. (zaka/kaw)
