PMK 40 tahun 2023 (English)

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Type: REGULATION (PER)

By: THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA Number: 40 YEAR 2023

Date: 11 APRIL 2023 (JAKARTA)

Title: FORMS AND PROCEDURES FOR THE SUBMISSION OF REPORTS AS WELL AS LIST OF TAXPAYERS IN THE CONTEXT OF

FULFILLMENT OF REQUIREMENTS FOR REDUCTION IN INCOME TAX RATE FOR DOMESTIC CORPORATE TAXPAYERS IN THE FORM OF PUBLIC COMPANY

BY THE GRACE OF THE ALMIGHTY GOD,

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

Considering:

a. whereas to provide convenience in submitting a list of Taxpayers that meet certain requirements and provide greater legal certainty regarding the application of reduction in corporate Income Tax rate in respect of the promulgation of Law Number 7 Year 2021 regarding Harmonization of Tax Regulations, it is necessary to make adjustments to the provisions regarding the forms and procedures for the submission of reports as well as list of Taxpayers in the context of fulfillment of requirements for reduction in Income Tax rate for domestic corporate Taxpayers in the form of public company;

b. whereas Regulation of the Minister of Finance Number 123/PMK.03/2020 regarding Forms and Procedures for the Submission of Reports as well as List of Taxpayers in the Context of Fulfillment of Requirements for Reduction in Income Tax Rate for Domestic Corporate Taxpayers in the Form of Public Company has not accommodated the need for adjustments to the forms and procedures for the submission of reports as well as list of Taxpayers in the context of fulfillment of requirements for reduction in Income Tax rate for domestic corporate Taxpayers in the form of public company, so that it needs to be replaced;

c. whereas based on considerations as referred to in letter a and letter b, as well as to implement the provisions of Article 68 of Government Regulation Number 55 Year 2022 regarding Adjustments to Regulations in the Field of Income Tax, it is necessary to stipulate a Regulation of the Minister of Finance regarding Forms and Procedures for the Submission of Reports as well as List of Taxpayers in the Context of Fulfillment of Requirements for Reduction in Income Tax Rate for Domestic Corporate Taxpayers in the Form of Public Company;

In view of:

1. Article 17 paragraph (3) of the 1945 Constitution of the Republic of Indonesia;

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2. Law Number 7 Year 1983 regarding Income Tax (State Gazette of the Republic of Indonesia Year 1983 Number 50, Supplement to the State Gazette of the Republic of Indonesia Number 3263) as amended several times, most recently by Law Number 7 Year 2021 regarding Harmonization of Tax Regulations (State Gazette of the Republic of Indonesia Year 2021 Number 246, Supplement to the State Gazette of the Republic of Indonesia Number 6736);

3. Law Number 39 Year 2008 regarding State Ministry (State Gazette of the Republic of Indonesia Year 2008 Number 166, Supplement to the State Gazette of the Republic of Indonesia Number 4916);

4. Government Regulation Number 55 Year 2022 regarding Adjustments to Regulations in the Field of Income Tax (State Gazette of the Republic of Indonesia Year 2022 Number 231, Supplement to the State Gazette of the Republic of Indonesia Number 6836);

5. Presidential Regulation Number 57 Year 2020 regarding Ministry of Finance (State Gazette of the Republic of Indonesia Year 2020 Number 98);

6. Regulation of the Minister of Finance Number 118/PMK.01/2021 regarding Organization and Work Mechanisms of the Ministry of Finance (Official Gazette of the Republic of Indonesia Year 2021 Number 1031) as amended by Regulation of the Minister of Finance Number 141/PMK.01/2022 regarding Amendment to Regulation of the Minister of Finance Number 118/PMK.01/2021 regarding Organization and Work Mechanisms of the Ministry of Finance (Official Gazette of the Republic of Indonesia Year 2022 Number 954);

HAS DECIDED:

To stipulate: REGULATION OF THE MINISTER OF FINANCE REGARDING FORMS AND PROCEDURES FOR THE SUBMISSION OF REPORTS AS WELL AS LIST OF TAXPAYERS IN THE CONTEXT OF FULFILLMENT OF REQUIREMENTS FOR REDUCTION IN INCOME TAX RATE FOR DOMESTIC CORPORATE TAXPAYERS IN THE FORM OF PUBLIC COMPANY.

Article 1 Referred to herein as:

1. Taxpayer shall be individual or entity, including payer of tax, withholder of tax, and collector of tax, who have tax rights and obligations in accordance with the provisions of laws and regulations on taxation.

2. Public Company shall be a public company or company that conducts public offering of shares, in accordance with the provisions of laws and regulations in the capital market sector.

3. Public Company Taxpayer shall be domestic corporate Taxpayer in the form of Public Company.

4. Party shall be an individual or entity.

(3)

5. Taxpayer Identification Number shall be a number given to a Taxpayer as a facility in tax administration that is used as a personal identification or identity of a Taxpayer in exercising its tax rights and obligations.

6. Tax Year shall be a period of 1 (one) calendar year unless the Taxpayer uses an accounting year that is not the same as the calendar year.

7. Income Tax shall be income tax as referred to in Law on Income Tax.

8. Annual Income Tax Return shall be an Income Tax Return for a Tax Year or part of a Tax Year.

9. Securities Administration Bureau shall be a party that, based on a contract with the issuer and/or securities issuer, is carrying out registration of securities ownership and distribution of rights related to securities in accordance with the provisions of laws and regulations in the capital market sector.

10. Minister shall be the minister that administers government affairs in the field of state finance.

Article 2

The Income Tax rate that is applied to taxable income for domestic corporate Taxpayers and permanent establishments shall be:

a. 22% (twenty two percent) that is valid for the Fiscal Year 2020 and Fiscal Year 2021; and

b. 22% (twenty two percent) that will take effect in the Fiscal Year 2022, in accordance with the provisions of Law Number 7 Year 2021 regarding Harmonization of Tax Regulations.

Article 3

(1) Domestic corporate taxpayers as referred to in Article 2 that:

a. are in the form of Public Company;

b. with the total amount of fully paid shares traded on the stock exchange in Indonesia at a minimum of 40% (forty percent); and

c. meet certain requirements,

may obtain a rate of 3% (three percent) lower than the rate as referred to in Article 2.

(2) Certain requirements as referred to in paragraph (1) letter c shall include:

a. shares as referred to in paragraph (1) letter b must be owned by at least 300 (three hundred) Parties;

b. each Party as referred to in letter a may only own shares of less than 5%

(five percent) of the total issued and fully paid shares;

(4)

c. provisions as referred to in paragraph (1) letter b as well as in letter a and letter b must be fulfilled within a minimum period of 183 (one hundred and eighty three) calendar days within 1 (one) Tax Year; and

d. fulfillment of the requirements as referred to in paragraph (1) letter b as well as in letter a, letter b, and letter c is carried out by Public Company Taxpayer by submitting a report to the Directorate General of Taxes.

(3) The Parties as referred to in paragraph (2) letter a and letter b do not include:

a. Public Company Taxpayer that buys back its shares; and/or

b. those with special relationship as set forth in Law on Income Tax with Public Company Taxpayer.

(4) The special relationship as referred to in paragraph (3) letter b for Public Company Taxpayer shall include:

a. controlling shareholder; and/or b. major shareholder,

as set forth in the provisions of laws and regulations in the capital market sector.

(5) The controlling shareholder as referred to in paragraph (4) letter a shall be a Party that has direct or indirect control over the Public Company Taxpayer as set forth in Regulations of the Financial Services Authority in the capital market sector.

(6) Regulations of the Financial Services Authority in the capital market sector as referred to in paragraph (5) shall include regulations governing:

a. Public Company takeover; and/or b. Party having a controlling relationship.

(7) The main shareholder as referred to in paragraph (4) letter b shall be a Party that, either directly or indirectly, owns at least 20% (twenty percent) of the voting rights of all shares with voting rights issued by a company or a smaller amount than that as stipulated by the Financial Services Authority.

Article 4

(1) In terms of a domestic corporate Taxpayer does not comply with the provisions as referred to in Article 3, the Income Tax payable shall be calculated at the Income Tax rate as referred to in Article 2.

(2) The calculation of Income Tax payable that is calculated at the Income Tax rate as referred to in paragraph (1) shall be in accordance with the provisions of laws and regulations.

Article 5

(1) The form of report as referred to in Article 3 paragraph (2) letter d shall consist of:

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a. monthly report; and

b. report on share ownership with special relationship for major shareholder and controlling shareholder.

(2) The monthly report as referred to in paragraph (1) letter a shall be:

a. monthly report on share ownership of issuer or public company and the recapitulation that has been reported from the Securities Administration Bureau; or

b. monthly report on share ownership of issuer or public company for issuer and/or public company that administers its own securities,

as set forth in the provisions of laws and regulations in the capital market sector governing report of securities administration bureau or issuer and public company that carries out securities administration by itself.

(3) The monthly report as referred to in paragraph (1) letter a shall be prepared for each Tax Year by including the name of the Taxpayer, Taxpayer Identification Number, Tax Year, as well as stating the fulfillment of the requirements as referred to in Article 3.

(4) The form of report on share ownership with special relationship as referred to in paragraph (1) letter b shall contain, at least:

a. name of the Taxpayer;

b. Taxpayer Identification Number;

c. Tax Year;

d. name of shareholder with special relationship with the Taxpayer;

e. Taxpayer Identification Number of shareholder with special relationship with the Taxpayer;

f. special relationship between shareholder and Taxpayer;

g. type of control with the Taxpayer;

h. total share ownership by the party with special relationship; and i. percentage of share ownership by the party with special relationship.

(5) The form of report on share ownership with special relationship as referred to in paragraph (4) shall use the example format as specified in Attachment letter A that constitutes an inseparable part of this Regulation of the Minister.

Article 6

Taxpayer shall submit report as referred to in Article 5 paragraph (1) by enclosing the report as part of the Annual Income Tax Return for each Tax Year.

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Article 7

In terms of the monthly report submitted by the Securities Administration Bureau does not comply with the provisions as referred to in Article 5 paragraph (3), Taxpayer shall submit the monthly report themself using the example format as specified in Attachment letter B that constitutes an inseparable part of this Regulation of the Minister.

Article 8

(1) The Chairperson of the Board of Commissioners of the Financial Services Authority or the appointed official shall submit list of Taxpayers that meet the provisions as referred to in Article 3 paragraph (2) and paragraph (3) letter a to the Minister through the Director General of Taxes.

(2) The list of Taxpayers as referred to in paragraph (1) shall contain, at least:

a. Tax Year;

b. name of Public Company Taxpayer;

c. Taxpayer Identification Number of the Public Company;

d. name of Securities Administration Bureau;

e. Taxpayer Identification Number of the Securities Administration Bureau;

f. number of shareholders of less than 5% (five percent);

g. percentage of share ownership of each Party that owns shares of less than 5% (five percent); and

h. number of days in one Tax Year that meet the requirements.

(3) The list of Taxpayers as referred to in paragraph (1) shall use the example format as specified in Attachment letter C that constitutes an inseparable part of this Regulation of the Minister.

Article 9

(1) The list of Taxpayers as referred to in Article 8 paragraph (1) shall be submitted electronically through an application or system that is determined and/or provided by the Directorate General of Taxes.

(2) In terms of the application or system as referred to in paragraph (1) is not yet available, the Chairperson of the Board of Commissioners of the Financial Services Authority or the appointed official may submit the list of Taxpayers in written form to the Minister through the Director General of Taxes.

(3) The submission of list of Taxpayers as referred to in paragraph (1) shall be carried out no later than the end of the month following the end of the relevant Tax Year.

Article 10

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At the time this Regulation of the Minister comes into effect, Regulation of the Minister of Finance Number 123/PMK.03/2020 regarding Forms and Procedures for the Submission of Reports as well as List of Taxpayers in the Context of Fulfillment of Requirements for Reduction in Income Tax Rate for Domestic Corporate Taxpayers in the Form of Public Company (Official Gazette of the Republic of Indonesia Year 2020 Number 988), shall be revoked and declared null and void.

Article 11

This Regulation of the Minister shall come into effect as of the date of its promulgation.

For public cognizance, it is hereby ordered that this Regulation of the Minister be promulgated by its placement in the Official Gazette of the Republic of Indonesia.

Stipulated in Jakarta on 11 April 2023

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA, signed

SRI MULYANI INDRAWATI Promulgated in Jakarta on 13 April 2023

DIRECTOR GENERAL OF LAWS AND REGULATIONS MINISTRY OF LAW AND HUMAN RIGHTS

REPUBLIC OF INDONESIA, signed

ASEP N. MULYANA

OFFICIAL GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2023 NUMBER 332 Issued as true copy

Head of General Affairs Bureau on behalf of the

Acting Head of the Ministry Administration Division signed and stamp

DEWI SURIANI HASLAM NIP 19850116 201012 2 002

--- NOTE ATTACHMENT

REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA NUMBER 40 YEAR 2023

REGARDING

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FORMS AND PROCEDURES FOR THE SUBMISSION OF REPORTS AS WELL AS LIST OF TAXPAYERS IN THE CONTEXT OF FULFILLMENT OF REQUIREMENTS FOR REDUCTION IN INCOME TAX RATE FOR DOMESTIC CORPORATE TAXPAYERS IN THE FORM OF PUBLIC COMPANY

A. EXAMPLE FORMAT OF REPORT ON SHARE OWNERSHIP WITH SPECIAL RELATIONSHIP FOR MAJOR SHAREHOLDERS AND CONTROLLING SHAREHOLDERS

REPORT ON SHARE OWNERSHIP WITH SPECIAL RELATIONSHIP FOR MAJOR SHAREHOLDERS AND CONTROLLING SHAREHOLDERS NAME OF TAXPAYER : ... (1)

NPWP : ... (2)

TAX YEAR : ... (3) No End of

month Shareholder Share

Ownership Relationship

Control Total Share

Ownership Percentage

Name NPWP

(4) (5) (6) (7) (8) (9) (10) (11)

In witness whereof, we convey this truthfully.

..., ... (12) Taxpayer,

... (13)

INSTRUCTIONS FOR FILLING OF REPORT ON SHARE OWNERSHIP WITH SPECIAL RELATIONSHIP FOR MAJOR SHAREHOLDERS AND

CONTROLLING SHAREHOLDERS (1) Filled with the name of the Public Company Taxpayer.

(2) Filled with the Taxpayer Identification Number of the Public Company.

(3) Filled with the Tax Year of utilization of the Income Tax rate reduction facility.

(4) Filled with the serial number.

(5) Filled with the month.

(6) Filled with the name of shareholder with special relationship with the Public Company Taxpayer.

(7) Filled with the Taxpayer Identification Number of shareholder.

(8) Filled with the form of special relationship between the shareholder and the Public Company Taxpayer.

(9) Filled with the type of control in the form of direct or indirect control.

(10) Filled with the total of share ownership.

(11) Filled with the percentage of share ownership.

(12) Filled with the place and date the report is drawn up.

(13) Filled with the signature of the director or administrator of the Taxpayer.

B. EXAMPLE FORMAT OF MONTHLY REPORT

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MONTHLY REPORT ON SHARE OWNERSHIP OF ISSUER OR PUBLIC COMPANY AND THE RECAPITULATION THAT HAS BEEN REPORTED

Name of Taxpayer : ... (1) Year : ... (3) NPWP : ... (2)

End of Month Position

Number of Qualifying Days Month

Capital

Shareholders With Ownership >= 5% Shareholders With <5% Ownership

%Total Qualifyin

g Major Shareholders

and Controlling Shareholders

Number Buybackof Shares

Other Shareholders Controlling

Shareholders Number Buybackof Shares

Shareholders As Parties Basic

(shares) Paid-up (shares) Number

of Sharehol

ders

Number of Shares

Number of Sharehol

ders

Number of Shares

Number of Sharehol

ders

Number of Shares

Number of Sharehol

ders

Number of Shares

This

month Total up to this Month

(4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19)

January February March

April May June July August Septemb

er October Novemb

er Decemb

er

... , ... (20) Taxpayer,

... (21)

INSTRUCTIONS FOR FILLING OF MONTHLY REPORT ON SHARE OWNERSHIP OF ISSUER OR PUBLIC COMPANY AND THE RECAPITULATION THAT HAS BEEN

REPORTED

(1) Filled with the name of the Public Company Taxpayer.

(3) Filled with the Tax Year of utilization of the Income Tax rate reduction facility.

(4) Filled with the month.

(5) Filled with the number of shares as the authorized capital.

(6) Filled with the number of paid-up shares.

(7) Filled with the number of major shareholders and controlling shareholders holding shares with ownership of at least 5% (five percent).

(8) Filled with the total number of shares owned by major shareholders or controlling shareholders with ownership of at least 5% (five percent) for each shareholder.

(9) Filled with the number of shares bought back with ownership of at least 5% (five percent).

(10) Filled with the number of other shareholders holding shares of at least 5% (five percent).

(11) Filled with the total number of shares owned by other shareholders with ownership of at least 5% (five percent) for each shareholder.

(12) Filled with the number of controlling shareholders holding shares of less than 5%

(five percent).

(10)

(13) Filled with the total number of shares owned by controlling shareholders with ownership of less than 5% (five percent) for each shareholder.

(14) Filled with the number of shares bought back with ownership of less than 5%

(five percent).

(15) Filled with the number of shareholders including the Parties with share ownership of less than 5% (five percent) that meet the requirements as referred to in Article 3 (excluding the Parties as referred to in number (12)).

(16) Filled with the total number of shares owned by Parties with share ownership of less than 5% (five percent) that meet the requirements as referred to in Article 3 (excluding the number of shares as referred to in numbers (13) and (14)).

(17) Filled with the percentage of the number of shares owned by the Parties (total number of shares owned by the Parties (in number (16)) compared to the number of shares paid up (in number (6))).

(18) Filled with the number of days in a month as referred to in number (1) where the percentage of the number of shares as referred to in number (17) fulfills the requirements.

(19) Filled with the accumulated number of days until the end of the month as referred to in number (1) that fulfills the requirements.

(20) Filled with the place and date the report is drawn up.

(21) Filled with the signature of the director or administrator of the Taxpayer.

C. EXAMPLE FORMAT OF LIST OF QUALIFIED TAXPAYERS LIST OF QUALIFIED TAXPAYERS

BASED ON GOVERNMENT REGULATION NUMBER 55 YEAR 2022

TAX YEAR: ... (1)

NO NAME OF THE TAXPAYER/

ISSUER/PUBLIC COMPANY

NPWP NAME OF

SECURITIES ADMINISTRATIO

N BUREAU

NPWP TOTAL

SHAREHOLDE RS OF LESS

THAN 5%

PERCENTAG E SHARE OWNERSHIP

OF LESS THAN 5%

NUMBER OF DAYS IN ONE TAX FULFILLEDYEAR

REMARK

(2) (3) (4) (5) (6) (7) (8) (9) (10)

INSTRUCTIONS FOR FILLING OF FORMAT OF LIST OF QUALIFIED TAXPAYERS (1) Filled with the Tax Year.

(2) Filled with the serial number.

(3) Filled with the name of the qualified Public Company Taxpayer.

(5) Filled with the name of the Securities Administration Bureau that carries out the registration of securities ownership and distribution of rights related to the securities of the Public Company Taxpayer.

(6) Filled with the Taxpayer Identification Number of the Securities Administration Bureau.

(7) Filled with the number of Parties as shareholder of less than 5% (five percent) as referred to in Article 3 paragraph (2) and paragraph (3) letter a.

(8) Filled with the percentage of share ownership of less than 5% (five percent) as referred to in Article 3 paragraph (2) and paragraph (3) letter a of all paid-up shares traded on the stock exchange in Indonesia.

(9) Filled with the number of days the requirements are fulfilled.

(10) Filled with other information.

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MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA, signed

SRI MULYANI INDRAWATI Issued as true copy

Head of General Affairs Bureau on behalf of the

Acting Head of the Ministry Administration Division signed and stamp

Dewi Suriani Haslam

NIP 19850116 201012 2 002

Source: LOOSE LEAF REGULATION OF THE MINISTER OF FINANCE YEAR 2023