City Applies Tax Reliefs and Abolition of Administrative Sanctions, Let's Pay Taxes Immediately!

Jakarta Government has issued a follow-up policy for Regional Fiscal Incentives 2021 in form of tax relief and abolition of regional tax administrative sanctions.

By taking opportunity of this fiscal incentive policy, taxpayers can be helped in paying off their tax obligations

This policy was issued as a form of economic recovery for people affected by COVID-19 which is regulated in Governor Regulation No. 104/2021 on Amendments to Governor Regulation No. 60/2021 on Fiscal Incentives 2021.

The principal tax reliefs include Urba n and Rural Land and Building Tax (PBB-P2), Motor Vehicle Tax (PKB), and Acquisition Duty of Right on Land and Building (BPHTB).

Realization of Tax Revenue in North Jakarta Reaches Rp 5.45 Trillion

Meanwhile, abolition of administrative sanctions in form of interest due to late payment of principal tax, delay in advertising tax implementation registration, and late payment of mass deposit and/or tax assessment letter for certain types of taxes.

Jakarta Provincial Revenue Agency Head, Lusiana Herawati mentioned, all regional fiscal incentives changes in 2021 are applied automatically by making adjustments to Regional Tax Management Information System.    

"Especially for BPHTB, it must go through application which submitted by taxpayer to local sub-district Regional Tax Collection Service Unit (UPPPD) Office," she added, Wednesday (12/15).

She appealed to all taxpayers (WP) to immediately fulfill their tax obligations by taking advantage of End of Year 2021 Regional Fiscal Incentives Policy.

"By taking opportunity of this fiscal incentive policy, taxpayers can be helped in paying off their tax obligations during the current COVID-19 pandemic," she said.

For information, here are the details of principal tax reliefs and abolition of regional tax administration sanctions:

Principal Tax Reliefs

1. Urban and Rural Land and Building Tax (PBB-P2)

• Principal receivables for fiscal year 2013-2020 are given 10 percent relief each year for tax payers who pay until December 31, 2021.

• Principal receivables for fiscal year 2021 are given incentives with following conditions:

a. 10 percent relief for taxpayers who pay PBB-P2 until December 31, 2021

b. PBB-P2 with stipulations > Rp. 1,000,000,000 (one billion rupiah) can apply for payment in installments through website: https://pajakonline.jakarta.go.id

c. Application for installments is submitted no later than December 20, 2021 and is given a maximum of 6 (six) installments within maximum period of 6 months and is given the abolition of administrative sanctions.

• SPPT PBB-P2 2021 which has been paid in October 2021 before the enactment of this Governor Regulation (Pergub) and doesn't get fiscal incentive facility of Pergub No. 60/2021 can be given 10 percent relief which is compensated for same tax object based on taxpayer's request.

• Application for compensation is submitted no later than January 24, 2022 through pajakonline.jakarta.go.id

2. Motor Vehicle Tax (PKB)

• Taxpayers who pay PKB principal tax before 2021 within period December 14-31, 2021 get 5 percent principal relief.

• PKB principal tax 2021 is given a relief of 5 percent for taxpayers who pay within period December 14-31, 2021.

3. Vehicle-ownership Transfer Fee (BBN-KB)

• 50 percent relief is given for principal tax of ownership transfer fee for second motor vehicle and so on for taxpayers who pay BBN-KB in period of August-December 2021.

4. Acquisition Duty of Right on Land and Building (BPHTB)

• BPHTB relief is given to individual Taxpayers for the first time acquisition of an object in form of a House or Flat with a Tax Object Acquisition Value (NPOP) > Rp  2,000,000,000 (more than two billion rupiah) up to < Rp 3,000,000,000 (less than or equal to three billion rupiah), with the provisions;

a) 50 percent relief for taxpayers who pay BPHTB in August 2021

b) 25 percent relief for taxpayers who pay BPHTB in September-October 2021

c) 10 percent relief for taxpayers who pay BPHTB in November-December 2021

Abolition of Administrative Sanctions

1. Abolition of administrative sanctions in form of interest due to late payment of tax principal is given to;

a) Taxpayers who make principal payments of PBB-P2 receivables for fiscal year 2013-2020.

b) Taxpayers who make PKB principal tax payments for fiscal year 2013-2020.

c) Taxpayers who make BBN-KB principal tax payments for second motor vehicle and so on.

2. Abolition of administrative sanction in form of interest due to delays in principal payments and/or delays in registration for administration of advertising tax given to taxpayers who pay in period December 14-31, 2021.

3. Abolition of administrative sanction in form of interest due to late payment of mass deposit and/or Tax Assessment Letter for types of Hotel Tax, Entertainment Tax, Restaurant Tax, and Parking Tax given to taxpayers who pay in period December 14-31, 2021.