Update Perpajakan September 2024 - BATS Tax Update!

This announcement was issued in addition to PER-6/PJ/2024 which aims to provide legal certainty and ease of service to Taxpayers and Other Parties, as well as sufficient time in preparing the administrative system, including for Other Parties who provide administrative services that include the NPWP. In PER-6/PJ/2024, there are the following policies: 

1. Use of 16 & 15 Digit NPWP and NITKU in administrative services by the DGT

Starting from July 1, 2024, taxpayers can gradually use the 16 or 15 Digit NPWP and NITKU according to the publications that have been carried out by the DGT. Until now, there are 37 administrative services from the DGT that can be accessed using 16 or 15 Digit NPWP and NITKU.

2. Adjustments related to Arrangements in PENG-4/PJ.09/2024

a. Taxable Entrepreneurs (PKP) who do not submit a notice of concentration of VAT payable by April 30, 2024 will not be centralized where VAT is payable by position at their place of residence and/or place of residence as of July 1, 2024.

b. The implementation of the centralization of VAT payable by position at the place of residence or domicile will be carried out in conjunction with the implementation of the Core System of Tax Administration (Coretax), which will be further determined by the Director General of Taxes.

c. PKP that until this announcement was issued has not submitted a notice of centralization where VAT is payable, using the Central NPWP for Central Taxpayers with PKP status and Branch NPWP for Branch Taxpayers with PKP status in accordance with the provisions as stipulated in PER-6/PJ/2024 in carrying out VAT rights and obligations.

d. In relation to the above, in order to facilitate compliance, PKPs who have not yet centralized the place where VAT is payable are still encouraged to submit a notification of the concentration of the place where VAT is payable at the place of residence or place of residence in accordance with the procedures stipulated in the Regulation of the Director General of Taxes Number PER-11/PJ/2020 concerning the Determination of One or More Places as the Place of Concentration of Outstanding Value Added Tax.

The government through the Ministry of Finance provides Additional VAT Incentives for the Handover of Landed Houses and Flats. This is regulated in PMK 61 of 2024 which takes effect from September 19, 2024. 

A landed house is a building in the form of a residential house or row house, both multi-storey and non-multi-storey, including residential buildings that are partly used as shops or offices. A flat unit is a unit of flats that functions as a place of residence.

This facility is given 100% of the VAT payable from the basic part of tax imposition up to IDR 2,000,000,000 with a maximum selling price of IDR 5,000,000,000 for the tax period September to December 2024. The Government will bear the VAT payable when the handover occurs under one of the following conditions:

a. the sale and purchase deed is signed by the authorized land deed official; or

b. a fully binding sale and purchase agreement is signed in the presence of a notary,

from September 1, 2024 to December 31, 2024 and a real transfer of rights to use or control a landed house or ready-to-live unit as evidenced by the minutes of the handover from September 1, 2024 to December 31, 2024.

Taxable Entrepreneurs who hand over landed houses or flats make tax invoices with the following conditions:

a. using transaction code 07 for delivery with a selling price of up to IDR 2,000,000,000; or

b. using transaction code 07 for the selling price up to IDR 2,000,000,000 and transaction code 01 for the selling price of more than IDR 2,000,000,000.

VAT payable is not borne by the Government in the event that:

a. the object to be handed over is not a landed house or a unit of flats;

b. the first down payment or installment has been made before September 1, 2024;

c. the submission is made before September 1, 2024 or after December 31, 2024;

d. acquisition of more than 1 house by 1 person;

e. landed houses or flats are transferred within 1 year from the date of handover;

f. submission does not use Tax Invoices; and/or

g. The Taxable Entrepreneur does not register the minutes of the handover.

This regulation replaces the previous rule, namely PMK Number 7 of 2024 which has been in effect since February 12, 2024, in the regulation the facilities are divided into 2 categories, namely:

a. VAT DTP of 100% for January – June 2024; and

b. VAT DTP of 50% for July – December 2024,

With the enactment of this PMK, the VAT DTP facility, which was only 50%, has returned to 100% for the September to December 2024 Tax Period.