On 1 September 2020, the Directorate General of Taxation (DGT) of Indonesia has published Regulation No. 123/PMK.03/2020 which provides the forms and procedures to claim the 3% corporate tax rate reduction that was introduced in June 2020. Under the Regulation No. 30 of 19 June 2020 a 3% reduction was introduced for companies publicly listed on the Indonesia Stock Exchange which was introduced as part of measures due to COVID-19. As a result of 3% reduction, the rate will be 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 monthly reports on share ownership issued by the Securities Administration Bureau; or prepared by the public company if the company carries out its own securities administration; and reports on share ownership of related parties according to the format prescribed in Annex A of PMK-123.
PMK-123 came into operation on 2 September 2020.
