first_imgIndonesia has set aside Rp 436.1 trillion (US$28.12 billion) from the 2020 state budget for medical needs, social safety net programs, relief for small and medium businesses, as well as relief for manufacturing and tourism-related companies to handle the impacts of the COVID-19 crisis.Some 9.46 million taxpayers have filed their annual tax returns as of Friday, a decrease of 8.8 percent from 11.33 million taxpayers recorded during the same period last year, according to data from Finance Ministry’s Taxation Directorate General. Meanwhile, 412,166 firms have filed their tax returns this year, a decline from last year’s figure of 452,027 firms.“Businesses who have already filed their tax returns will get corporate tax cuts,” Suryo told reporters, calling for more businesses to file their annual tax returns.The government will cut corporate income tax from the current 25 percent to 22 percent for this year and next year, according to Regulation in Lieu of Law No. 1/2020. It will further cut corporate income tax to 20 percent starting in 2022.The Taxation Directorate General has canceled direct face-to-face services and is advising all taxpayers to use online facilities for filing their annual tax returns in compliance with the government’s social distancing policy to help limit the spread of COVID-19.The pandemic has infected nearly 3 million people around the globe, including 9,096 in Indonesia, forcing factories, retail shops and schools to close amid government-imposed lockdowns and social restrictions. This will result in a decline in tax revenue for the government as it expects a widening budget deficit of 5.07 percent.State revenue in the first quarter was up 7.7 percent year-on-year (yoy) at Rp 375.9 trillion after state-owned banks paid large dividends. Tax revenue, however, contracted 2.5 percent to Rp 241.6 trillion in the first quarter.Topics : Indonesia’s tax office has decided to keep the annual tax return (SPTs) filing deadline of April 30 for individuals and firms as filings have dropped significantly during the COVID-19 pandemic.The government, however, will postpone the deadline for individuals and firms to submit required documents to June 30, as the pandemic has disrupted businesses and social activities, said tax office chief Suryo Utomo.“This annual tax payment is crucial to handle the COVID-19 crisis, which needs huge funds,” Suryo told a teleconferenced press briefing held by the country’s COVID-19 task force on Monday. “Please file your tax returns before the deadline.”last_img read more