As a follow-up to the policy of the Directorate General of Taxation (“DGT”) Regulation of taxes as stipulated in DGT Regulation No. PER – 23/PJ/2020 (“PER 23”) related the making of Unification Withholding/Collection Tax Receipt and submission of Unification monthly Income Tax Return, then DGT issued new regulation regarding the determination of registered Taxpayers in 5 (five) Tax Service Offices to start carrying out the obligation to make Unification Withholding/Collection Tax Receipt and submit Unification monthly Income Tax Return. The regulation is DGT Decree No. KEP – 20/PJ/2021 (“KEP 20”) issued on January 22, 2021.
The 5 Tax Service Offices are:
1. Central Jakarta Medium Tax Service Office;
2. South Jakarta I Medium Tax Service Office;
3. Jakarta Gambir 3 Tax Service Office;
4. Jakarta Gambir 4 Tax Service Office; and
5. Jakarta Kebayoran Baru 4 Tax Service Office.
The obligation must be implemented since Tax Period of February 2021. But, for Taxpayers who submit tax return through Tax Application Service Provider website, the obligation is implemented since Tax Period of March 2021.
Unification Withholding/Collection Tax Receipt is a document in a standard format or other equivalent document made by the Income Tax Withholder/Collector as an evidence of the withholding/collection of Income Tax and showing the amount of Income Tax that has been withheld/collected.
Unification Monthly Income Tax Return is a monthly tax return that is used by Income Tax Withholder/Collector to report the obligation to withhold and/or collect Income Tax, pay for Income Tax withholding and/or collection, and/or self-deposit for several types of Income Tax in 1 (one) tax period.
Unification Monthly Income Tax Return includes several types of Income Tax: there are Income Tax Art. 4 Par. 2, Income Tax Art. 15, Income Tax Art. 22, Income Tax Art. 23; and Income Tax Art. 26.
For more Information about the form of Unification Withholding/Collection Tax Receipt and its requirement, equivalent document, and administrative sanctions, please refer to PER 23 and our Tax Alert No. 02.2021 as attached.