Indonesia's Directorate General of Taxation (DGT) has published Regulation No. 123/PMK.03/2020 of 1 September 2020, which provides the forms and procedures to claim the 3% corporate tax rate reduction that was introduced for companies publicly listed on the Indonesia Stock Exchange as part of measures in response to COVID-19. In connection with a general reduction in the corporate income tax rate, this results in rates of 19% for 2020 and 2021 (22% standard rate) and 17% from 2022 (20% standard rate).
For the purpose of claiming the rate reduction, qualifying public companies are required to attach the following reports to their annual income tax returns:
The monthly reports must include the name of the taxpayer, the taxpayer identification number, the tax year, and a declaration of compliance with the requirements to qualify for the reduced tax rate. Further, if the monthly reports from the Securities Administration Bureau do not include the required information, the taxpayer must submit the monthly reports according to the form prescribed in Annex C of the regulation. Annex B of the regulation is for a separate requirement of the Chairman of the Board of Commissioners of the Capital Market Authority to submit a list of qualifying public companies to the DGT by the end of the month following each fiscal year.
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