The Regional Government of Special Region Capital of Jakarta Province (“DKI Jakarta”) has enacted Governor of DKI Jakarta Regulation No 115 of 2020 on Granting of Tax Base Relief and/or Abolition of Administrative Sanctions for the 2020 Tax Year (“Governor Reg 115/2020”) on 11 December 2020, which has been in force since 14 December 2020. Through this regulation, the Regional Government of DKI Jakarta intends to support businessmen to conduct their business activities during the recession period due to the Corona Virus Disease 2019 (“Covid-19”) pandemic.1
Governor Reg 115/2020 provides tax relief and Abolition of administrative sanction, as further elaborated below.
Tax Base Relief for the Tax Year of 2020
Tax relieves are granted only for the following taxes:
1. Tax relief for Land and Building Tax on Rural and Urban Areas (Pajak Bumi dan Bangunan Perdesaan dan Perkotaan or “PBB-P2”), which is granted with the following criteria:
a) Tax relief is granted for 20% of the Tax Base (Pokok Pajak) amount, only for the tax paid in the tax year of 2020.
b) Tax relief may be granted to the extent that the tax relief receiver does not have any tax arrears for the PBB-P2 on the previous year(s).
2. Tax relief for Vehicle Tax (Pajak Kendaraan Bermotor or “PKB”), which is granted with the following criteria:
a) Tax relief is granted for 50% of the Tax Base (Pokok Pajak) amount, only for the tax paid in tax year of 2020.
b) Tax relief may be granted to the extent that the tax relief receiver does not have any tax arrears for the vehicle tax on the previous year(s).
c) The vehicles referred to in these criteria are common passengers’ vehicles operated based on the operational license owned by the vehicle owners.
Abolition of Administrative Sanction
Governor Reg 115/2020 abolishes/annuls administrative sanction(s) imposed in respect to the below infringements:
- Late payment of Tax Deposit Year 2020 for Hotel Tax (Pajak Hotel), Restaurant Tax (Pajak Restoran), Parking Tax (Pajak Parkir) and Entertainment Tax (Pajak Hiburan)
- Late payment of taxes imposed in regards to Billboard Tax (Pajak Reklame), where the imposition of the Billboard Tax is limited to those issued during year 2020.
- Late payment of any tax years PBB-P2 and PKB for common passengers’ vehicles.
Procedure to Receive Tax Relief and Abolition of Sanction
a) Tax relief and administrative sanction abolition/annulment will be conducted through the adjustment of the tax management system. The tax relief and administrative sanction abolition/annulment receiver will not have to undergo any taxpayer application process to be able to receive these tax facilities.
b) However, for taxpayer of PBB-P2, may have to submit their object’s identity in the electronic PBB-P2 Annual Tax Return system (Surat Pemberitahuan Pajak Terhutang PBB-P2), after they have received the tax relief and/or administrative sanction abolition/annulment.
These tax relief and administrative sanction abolition/annulment only apply for taxpayers who completed its relevant tax(es) payment before 31 December 2020.
c) Taxpayers that have fulfilled all their above taxes payment, including their administrative sanction (if any) before Governor Reg 115/2020 comes into force, will not receive any retribution and/or compensation for any of their exceeding payment amount.
Closing Notes
Although Governor Reg 115/2020 has been enacted on 11 December 2020, the tax relief and the abolition of administrative sanction will begin to be applicable by 14 December 2020. We hope that tax relief and abolition of administrative sanction may be the solution to handle the effect raised by the recession occurred in DKI Jakarta due to Covid-19 pandemic, especially for those micro businesses that are affected by the recession.
- Grahanusa Mediatama, ‘Pergub 115/2020 Terbit, Begini Rincian Relaksasi Pajak Dari Pemprov DKI Jakarta’ (PT. Kontan Grahanusa Mediatama, 2021) <https://regional.kontan.co.id/news/pergub-1152020-terbit-begini-rincian-relaksasi-pajak-dari-pemprov-dki-jakarta> ↩︎
