The Covid-19 pandemic has had a significant impact on various aspects of people’s lives in Indonesia. As a consequence, the government provides tax incentives for goods needed to manage the Covid-19 pandemic through Minister of Finance Regulation No. 3/PMK.03/2022 on Tax Incentives for Taxpayers Affected by the 2019 Corona Virus Disease Pandemic. The government issued Minister of Finance Regulation No. 114/PMK.03/2022 to amend previous regulation.

Tax Incentives

T he tax incentives are in the form of value added tax (PPN) incentives borne by the government (DTP) for the delivery of goods needed in the context of managing the Covid-19 pandemic, exempting from the collection of Article 22 import income tax (PPh), exempting from the collection of Article 22  income tax (PPh) and income tax facilities for human resources in the health sector.

Based on the consideration that the number of people infected with Covid-19 remains dynamic, the health incentives periodis extended until December 2022. In addition to the extension of the tax incentive period, the regulation also stipulates the relaxation of reporting of replacement tax invoices for2021 and 2022 tax invoice  to a maximum of 31 December 2022 and 31 December 2023.

Tax Collection

The regulation stipulates that tax collection is enforced in the case of insufficient data or information. Taxpayers have following alternatives:

  1. to take advantage of the exemption from imposition of PPh on vaccines, medicines and other goods.
  2. to use PPh incentives in PMK.
  3. to re-submit the application for a free certificate to be able to take advantage of this incentive.


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