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Tax Kaleidoscope 2024: A Reflection of Change (Part 2)

KUP

24 Des 2024, 03.19 WIB

In our previous article, we covered the tax events and policies from the first half of 2024. This article will focus on the significant tax events and policies implemented by the government in the latter half of 2024, starting in July.


July


By the end of July 2024, the government had collected 44.94% of its State Budget (Anggaran Pendapatan dan Belanja Negara / APBN) target of Rp893.85 trillion in tax revenue. This represented a 7.97% year-on-year decline compared to the same period in the previous year. The revenue of Rp893.85 trillion was primarily supported by income tax revenue of Rp519.58 trillion and Value-Added Tax (VAT) revenue of Rp332.81 trillion (Kemenkeu, 2024).


Additionally, in July 2024, the government officially implemented the National Identification Number (Nomor Induk Kependudukan / NIK) as the Taxpayer Identification Number (Nomor Pokok Wajib Pajak / NPWP). Consequently, from July 1, 2024, the 16-digit NPWP and Business Activity Location Identification Number (Nomor Identitas Tempat Kegiatan Usaha / NITKU) have been used in administrative services provided by the Directorate General of Taxes (DGT). This aligns with the Director General of Taxes Regulation Number 6/PJ/2024, which outlines the use of NIK as NPWP, NPWP with a 16-digit format, and NITKU in tax administration services.

 

As of July 12, 2024, twenty-one tax services can utilize the 16-digit NPWP and NITKU, including:

  • NPWP 16 Portal (https://portalnpwp.pajak.go.id/);https://portalnpwp.pajak.go.id/
  • DGT Online Account (https://account.pajak.go.id/);
  • KSWP Info (https://infokswp.pajak.go.id/);https://infokswp.pajak.go.id/
  • E-Bupot 21 (https://ebupot2126.pajak.go.id/);https://ebupot2126.pajak.go.id/
  • E-Bupot Unification (https://unifikasi.pajak.go.id/);https://unifikasi.pajak.go.id/
  • E-Bupot Unification of Government Agencies (https://ebupotip.pajak.go.id/);https://ebupotip.pajak.go.id/
  • E-Objection (https://eobjection.pajak.go.id/);https://eobjection.pajak.go.id/
  • E-Registration (https://ereg.pajak.go.id/);https://ereg.pajak.go.id/
  • E-Filing (https://efiling.pajak.go.id/);https://efiling.pajak.go.id/
  • Confirmation Page (https://rumahkonfirmasi.pajak.go.id/);https://rumahkonfirmasi.pajak.go.id/
  • E-PHTB DGT Online (https://ephtb.pajak.go.id/);https://ephtb.pajak.go.id/
  • E-PBK (https://epbk.pajak.go.id/);https://epbk.pajak.go.id/
  • E-SKD (https://eskd.pajak.go.id/);https://eskd.pajak.go.id/
  • E-SKTD (https://sktd.pajak.go.id/);https://sktd.pajak.go.id/
  • E-Reporting for Investment and Dividends (https://ereportinginvestasi.pajak.go.id);https://ereportinginvestasi.pajak.go.id
  • E-PHTB Notary (https://ephtbnotarisppat.pajak.go.id);https://ephtbnotarisppat.pajak.go.id
  • E-Reporting for PPS (https://ereportingpps.pajak.go.id);https://ereportingpps.pajak.go.id
  • E-SPOP (https://pbb.pajak.go.id);https://pbb.pajak.go.id
  • E-Reporting for Incentives (https://ereportinglayanan.pajak.go.id/);https://ereportingfasilitas.pajak.go.id/
  • Incentive Facilities (https://konstruksi.pajak.go.id/); andhttps://fasilitasinsentif.pajak.go.id/
  • Annual Tax Return Extension (https://perpanjanganspt.pajak.go.id/).https://perpanjanganspt.pajak.go.id/

 

August


In August 2024, the DGT collected Rp1,196.54 trillion in tax revenue, representing 59.73% of the 2024 APBN target. However, this was a 4.04% year-on-year decline compared to the same period in the previous year (Kemenkeu, 2024). The tax revenue included income tax revenue of Rp709.97 trillion, VAT revenue of Rp470.81 trillion, and other tax revenue of Rp15.76 trillion (Kemenkeu, 2024).


Regulatory changes in August 2024 included the issuance of the Minister of Finance Regulation (Peraturan Menteri Keuangan / PMK) Number 47 of 2024, which amended PMK Number 70/PMK.03/2017 regarding technical instructions on financial information access for tax purposes. This regulation granted the DGT the authority to obtain financial information, including statements and other relevant data, related to financial agreements and practices.

 

September


By the end of September 2024, the government had collected Rp1,354.82 trillion in tax revenue or 68.12% of the APBN target. Despite this, the tax revenue for September 2024 contracted by 2.38% year-on-year (Kemenkeu, 2024).


In September 2024, the government also revised tax provisions for representatives of foreign countries and international organizations. The Director General of Taxes Regulation Number PER-8/PJ/2024 outlined procedures for granting and using NPWP for tax administration purposes for representatives of foreign countries and international organizations and their officials, who are not subject to income tax. This regulation differed from the previous one which stated that these representatives and officials are not subject to tax, and therefore are not given NPWP.


However, the provisions also stated that NPWP for these representatives and officials do not create income tax obligations, provided that the officials do not receive income outside their positions, the partner countries apply the principle of reciprocity, and the international organizations do not engage in any business or activities other than providing loans to the Indonesian government.

 

October


October 2024 was a significant month, with the government issuing four PMKs in the finance and taxation field. The first regulation was related to the provision of corporate income tax facilities. The PMK Number 69 of 2024 amended PMK Number 130/PMK.010/2020 regarding the provision of corporate income tax reduction facilities. This regulation specified that to obtain a reduction in corporate income tax, corporate taxpayers must meet certain criteria as follows:

  1. be a Pioneer Industry;
  2. have the status of an Indonesian legal entity;
  3. make new investments for which a decision regarding the provision of corporate income tax and other tax facilities has never been issued before;
  4. have a new investment plan with a minimum value of Rp100,000,000,000.00 (one hundred billion rupiah);
  5. meet the provisions regarding the debt-to-capital ratio as stipulated in the PMK on determining the ratio between a company's debt and capital for income tax calculation purposes; and
  6. commit to realizing the investment plan no later than 1 (one) year after the issuance of the corporate income tax reduction decision.


The second regulation issued by the government in October was PMK Number 79 of 2024 regarding the tax treatment of Joint Operation (JO). Under these provisions, JOs are not required to register for NPWP or report their business activities to be appointed as taxable entrepreneurs, provided they do not deliver goods or services, do not receive or generate income, and do not incur costs or make payments to other parties.


The third regulation, PMK 74 of 2024, pertains to the establishment of bad-debt reserves deductible from gross income. This regulation rearranges the provisions for bad-debt reserves that banking, financing, and other industries can deduct as expenses in their fiscal financial reports.


The fourth regulation, PMK Number 78 of 2024, revises the provisions for the implementation of stamp duty. This regulation reorganizes the issuance and administration of stamp duty, effectively replacing three earlier regulations, including:

 

  • PMK Number 133/PMK.03/2021 regarding the implementation of Government Regulation Number 86 of 2021;
  • PMK Number 134/PMK.03/2021 regarding the stamp duty payment, characteristics of physical and electronic stamps, stamp validity, and late stamp duty; and
  • PMK Number 151/PMK.03/2021 regarding the determination of stamp duty collectors and procedures for collection, deposit, and reporting of stamp duty.
    As of October 31, 2024, the Ministry of Finance reported that tax revenue reached Rp1,517.53 trillion, representing 76.30% of the annual target. Although there was a 0.42% contraction compared to the previous year, the value of the tax revenue slowdown was decreasing. In other words, tax revenue showed month-over-month growth throughout 2024. The total revenue included Rp864.46 trillion from income tax, Rp620.42 trillion from value-added and luxury-goods sales tax, and Rp32.65 trillion from other taxes (Kemenkeu, 2024).

 

November


Currently, the DGT is developing a super application that enables administrative services and taxpayer supervision. The so-called Coretax system is set to launch on January 1, 2025. To facilitate the implementation of Coretax, the DGT issued PMK Number 81 of 2024 regarding tax provisions for the core tax administration system. Through these provisions, the government revoked 42 other regulations related to the technical implementation of tax rights and obligations. This comprehensive 600-page regulation is referred to as the PMK 'omnibus' tax law.


In addition, in November 2024, the government also issued PMK Number 85 of 2024 regarding rural and urban land and building tax assessments. These provisions cover various aspects such as rural and urban land and building tax objects, tax base, sale value of tax objects, assessments, and so on.


Regarding tax revenue, Deputy Minister of Finance, Mr. Anggito Abimanyu, mentioned that as of November 30, 2024, tax revenue amounted to Rp1.688.93 trillion, reaching 85% of the 2024 target. This revenue was primarily supported by non-oil and gas income tax amounting to Rp885.77 trillion, value-added and luxury-goods sales tax amounting to Rp707.76 trillion, and other taxes amounting to Rp36.52 trillion (Bisnis Indonesia, 2024).

 

December


As 2024 draws to a close, the tax regime is still filled with issues and uncertainties regarding policies to be issued in 2025. One policy that has been widely discussed and debated at the end of 2024 is the increase in VAT to 12% at the beginning of 2025. Minister of Finance, Sri Mulyani Indrawati, explained that the 12% VAT increase will be implemented in 2025 as mandated by the Harmonization of Tax Regulations Law. However, to maintain public purchasing power and uphold the principle of justice, the 12% VAT rate will only be levied on luxury goods (Antara, 2024).


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