The government in Indonesia introduced further guidance relating to tax relief measures in response to the coronavirus (COVID-19) pandemic.
A regulation also addresses the tax treatment of e-commerce transactions.
COVID-19 tax relief
The Ministry of Finance previously announced tax relief measures for companies and individual taxpayers in Regulation No.23/PMK.03/2020. Read TaxNewsFlash
Regulation No. 1 for 2020 (PERPPU-1)—effective 31 March 2020—includes a reduction of the corporate tax rate beginning for the fiscal year 2020-2021. The due dates for compliance with certain tax rights and obligations pursuant to the “COVID-19 force majeure period” are also extended.
These regulation further extends the authority of the Minister of Finance to grant import customs duty exemptions (or reductions) relating to the COVID-19 pandemic.
Tax treatment of e-commerce transactions
Regulation No. 1 for 2020 (PERPPU-1) also addresses the tax treatment of activities conducted as e-commerce transactions. Overseas sellers and e-commerce platform providers are required to appoint a representative in Indonesia to be responsible for paying and reporting the taxes related to these transactions.
Other measures provide:
Read an April 2020 report [PDF 835 KB] prepared by the KPMG member firm in Indonesia
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.