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208
USING INCOME TAX INCENTIVES ARTICLE 21 BORNE BY THE
GOVERNMENT ON COMPANIES IMPACTED BY COVID-19
Atin Hafidiah
Pasundan University, Indonesia
atin.hafidiah@unpas.ac.id
Dusa Sumartaya
Bandung Practicioner Polytechnic, Indonesia
dusasumartaya@praktisi.ac.id
Yana Maulana
Roebiandini Public Accounting Firm, Indonesia
maulana_yana@rocketmail.com
Abstract
This research is about the use of incentives provided by the government during the Covid-19 pandemic to
companies that are included in the Classification of Business Fields to get relief from Income Tax article 21
borne by the government (DTP). The purpose of this study is to find out whether PT HSK is included in the
Classification of Business Fields as stipulated and how to calculate Income Tax article 21 during the
pandemic period, as well as reporting. From the results of the study, it can be concluded that the company is
one that is included in the Classification of Business Fields and is entitled to the Income Tax Article 21DTP
tax incentive, besides that it can also be concluded that the company has carried out calculations, reporting
SPT Period Income Tax Article 21 and Realization Reports during the Covid-19 pandemic in accordance
with Minister of Finance Regulation Number 23 of 2020 for the period April to June 2020 and Minister of
Finance Regulation Number 86 of 2020 for the period until December 2020.
Keywords: Income Tax Article 21, Classification of Business Fields (KLU), PMK Number 23/2020, PMK
Number 86/2020
This work is licensed under CC BY-SA 4.0
INTRODUCTION
The general understanding of taxes is the contribution of the people to the state treasury
based on the law so that it can be imposed by not getting direct service reply (Setiyani et al.,
2018). While for corporate taxes is a burden that will reduce revenue, so the company must
take it carefully.
In 2020, Covid-19 is a very big concern for the Indonesian nation. Many losses incurred
during this pandemic that impacted the Indonesian economy (Yamali & Putri, 2020). This is
indicated from production activity stopped, people's purchasing power decreased, the fall of
the stock exchange that led to uncertainty (Pakpahan, 2020). At that time the economy of
various sectors experienced a significant decline. Small traders such as MSMEs to large
companies are also out of business due to the Covid-19 pandemic. Many companies are laying
off their employees, resulting in more and more unemployment. Even companies that can be
said to be safe find it difficult. The impact of the pandemic on MSMEs is a decrease in
performance in terms of consumption and purchasing power of the community (Nugraheni et
al., 2020). Whereas MSMEs are the backbone in maintaining economic stability in Indonesia.
MSMEs have an important role in indonesia's economic development and growth, namely for
Using Income Tax Incentives Article 21 Borne by the Government on Companies Impacted by Covid-19
209 Vol. 1, No. 3, December 2021
the expansion of employment and employment opportunities. Since the Covid-19 pandemic
hit, it has decreased (Wang et al., 2021).
Economic conditions like this should not be silenced, the government must issue a
policy. The long-term strategy is aimed at ensuring that in the future MSMEs will survive to
become major players in the economy after the Covid-19 pandemic (Sugiri, 2020). The
Ministry of Cooperatives and SMEs has opened a service that is 1500 587 which is intended
as a place of complaint for MSMEs and SMEs whose businesses are affected by the Covid-19
pandemic (Soetjipto, 2020).
In taxation, the government issued one policy, one of the policies of tax relaxation as a result
of the coronavirus pandemic that will have a certain impact. Tax revenues fell due to weakened
economic conditions, support for tax incentives and decreased income tax rates (Aulawi, 2020).
The government provides a 6-month income tax relaxation policy for companies whose criteria
have been determined based on the Business Field Group (KLU) of 846 (Hafidiah &
Sumartaya, 2021).
One of the incentives provided is the Income Tax incentive Income Tax Article 21. Article
21 Income Tax income tax is income tax in connection with work, services, and activities
carried out by the Personal Taxpayer, namely taxes on income in the form of salaries,
honorariums, benefits, and other payments of any name and form in connection with work or
employment. The government is committed to maintaining fiscal sustainability in 2020, where
the realization of the state budget deficit until March 2020 reaches zero. In order to support the
economy, the government has issued PMK-23/2020 and PMK 28/2020 which regulate the
relaxation of taxation (Rohman, 2021).
In order to increase energy efficiency and time to support the provisions of PMK above
must be developed a reporting system. The Directorate General of Taxation has developed a
reporting system for the utilization of tax incentives for taxpayers, which facilitates reporting
(Sirait et al., 2021). In this provision is regulated regarding the obligations of the company as
an employer. Employers who fall under the criteria, must submit the Income Tax DTP
Realization Report Article 21 using the form under annex E PMK 44/2020 (Ambarwati et al.,
2021).
The treatment of incentives from the above types of taxes does have different rules, because
it is adjusted to the needs that should be received by taxpayers who have been obedient to carry
out this type of tax. For taxpayers who want to take advantage of these incentives must submit
a realization report online (Sitindaon & Bandiyono, 2021).
METHOD
In this study used a case approach with descriptive analytical methods. The purpose of this
method is to systematically create descriptions, images or paintings of problems. The data that
has been obtained is processed, analyzed then processed based on the theory that has been
studied to produce a conclusion.
RESULTS AND DISCUSSION
Provision of Article 21 Income Tax Incentives by the Government
The government provides Income Tax Incentive Article 21 since April 2020, at that time
issued PMK No. 23/2020 and PMK No. 44/2020 applies to certain sectors amounting to up to
Using Income Tax Incentives Article 21 Borne by the Government on Companies Impacted by Covid-19
210 Vol. 1, No. 3, December 2021
1,620 types of business field groups (KLU). Then reissued PMK No. 86/2020 which is valid
until December 2020. Certain sectors in this provision increased to 1,189 KLU with additional
notices that were delivered to the center and to all branches. The issuance of PMK No.
110/2020 as an extension of Income Tax Incentive Article 21 in government responsibility
(DTP) for the next six months. In this PMK there is no expansion of certain sectors and the
details are still the same as PMK No. 86/2020. Not stopping here the Government again issued
PMK No. 9/2021, where the new rules reveal that Income Tax Article 21 DTP is extended for
the next 6 months until June 2021.
Thus the provision of Income Tax Incentive Article 21 lasts up to 9 months, starting from
the Tax Period April - December 2020. However, the provision of Income Tax Article 21 DTP
depends on when the company applies for incentives. This is in accordance with Article 3
paragraph (4) of PMK 86/2020 which states that The Income Tax Incentive Article 21 DTP
begins to be utilized since the Tax Period notice (The employer submits a notice to the KPP
where it is registered through www.pajak.go.id) submitted until the December 2020 Tax
Period. If the company applies for Income Tax incentive Article 21 DTP starting from the April
2020 Tax Period, then employees will get free Income Tax Article 21 DTP for the next 9
months until December 2020. However, if it turns out that the company starts filing the Income
Tax Incentive Article 21 DTP in the September 2020 Tax Period, then employees will get free
Income Tax Article 21 in just the next 4 months until the December 2020 Tax Period.
With the Income Tax Incentive Article 21 DTP, the company must pay Income Tax Article
21 DTP in cash when paying salaries to employees. In accordance with Article 2 paragraph (8)
PMK No. 86/2020 if in the case of DTP employees submit annual tax returns of private people
in tax year 2020 and state more pay then the excess derived from Income Tax Article 21 DTP
cannot be returned.
Income Tax Incentive Article 21 DTP does not apply to civil servants, TNI (Indonesia’s
National Army), and POLRI (Indonesia’s National Police). Not all workers can get the
exemption of Income Tax Article 21. In accordance with Article 2 paragraph (6) mentioned
there are exceptions from the provision of Income Tax Incentive Article 21 DTP, namely:
1) If the income received by employees comes from the State Revenue and Expenditure
Budget (APBN).
2) The income received by employees comes from the Regional Revenue and Spending
Budget (APBD).
3) Income Tax Article 21 has been borne by the government based on the provisions of
the legislation
Companies Meet the Requirements to Utilize Incentives Income Tax Article 21
PT HSK is a company affected by Covid-19, therefore entitled to utilize Article 21 Income
Tax Incentives and has fulfilled the following requirements.
The Company is included in the KLU incentive recipient Income Tax Article 21 DTP
The Company has a KLU code in accordance with PMK rule No. 86/2020 and has reported
its Annual Tax Return in accordance with the code and recorded with the tax administration.
In this case PT HSK has been included in klu recipient of Income Tax Incentive Article 21
Using Income Tax Incentives Article 21 Borne by the Government on Companies Impacted by Covid-19
211 Vol. 1, No. 3, December 2021
DTP, with the code KLU 20124 with the name KLU Fertilizer Industry Artificial Blended Hara
Macro Primer.
Figure 1. Business Field Code (KLU)
The Company has been designated as a KITE Company (Ease of Import Export Destination)
KITE is a facility provided by the government in the field of taxation. Through KITE
facilities, the government facilitates the flow of imports of raw materials for the production of
finished goods, which will then be exported. The arrangement and description of KITE
facilities is regulated in PMK No. 160/PMK.04/2018. PT HSK has been designated as a KITE
company and is one of the conditions to take advantage of The Government's Article 21 Income
Tax Incentive.
Calculation of Incentives Income Tax Article 21 Borne by the Government
Here is the calculation of Income Tax Incentive Article 21 borne by the government (DTP)
for one of the employees in May 2020. From the results of the calculation in figure 2 it is seen
that Income Tax Article 21 owed a month for fixed and regular income without THR is Rp
925,833, - the figure of Income Tax Article 21 DTP is then submitted by the company to
employees, as presented in the followingimage.
Table 1. The amount of income received by one of the employees in May 2020
Salary &
Allowance/month
15.000.000
Office/month fee
500.000
Pension/month dues
300.000
Using Income Tax Incentives Article 21 Borne by the Government on Companies Impacted by Covid-19
212 Vol. 1, No. 3, December 2021
800.000
Net/month
14.200.000
Yearning
170.400.000
PTKP K/1
63.000.000
107.400.000
Income Tax:
5%
2.500.000
15%
8.610.000
Income Tax Owed/year
11.110.000
Income Tax
Owed/month
925.833
Calculation, Deposit, and Reporting of Income Tax Article 21 DTP at PT HSK
In the calculation of recapitulation in January, February, and March 2020 there is no
nominal Income Tax Article 21 DTP. The three months are calculated normally with the
calculation of General Article 21 Income Tax. Because in January, February, and March 2020
there is no official regulatory policy regarding Income Tax Article 21 DTP, as presented in the
following table.
Table 2. Recapitulation of Income Tax Article 21 of January - March 2020
Period
Factions
Income
Income Tax
Must
Date
Recipient
Recipient
Brute
Cut
DTP
Paid
Sector
Report
January
Official
219
1.193.6
36.505
75.948.13
4
0
0
10/02/
20
19/02/2
0
Remain
Februari
Official
218
1.139.6
89.964
66.640.18
7
0
0
10/03/
20
20/03/2
0
Remain
March
Official
129
1.169.3
96.372
67.200.87
0
0
0
09/04/
20
21/04/2
0
Remain
The new Government policy is in April 2020 with the issuance of PMK No. 23/2020 and
PMK No. 44/2020. In April to the next 9 months began the entry into force of Income Tax
Article 21 DTP and strengthened by PMK No. 86/2020 and PMK No. 110/2020 as
replacements for the previous PMK.
In April 2020, it was only seen that the calculation of Income Tax Article 21 DTP
amounted to Rp 4,318,350 from 131 permanent employees with an overall gross amount of Rp
1,160,822,636 and Income Tax to be paid to the state treasury of Rp 61,708,463, - as presented
in table 3 below.
Table 3. Recapitulation of Income Tax Article 21 April 2020
Period
Factions
Income
Income Tax
Must
Date
Recipient
Recipient
Brute
Cut
DTP
Paid
Sector
Report
April
Official
130
1.078.
64.424.131
4.318.
60.105.
05/05/20
14/05/20
Using Income Tax Incentives Article 21 Borne by the Government on Companies Impacted by Covid-19
213 Vol. 1, No. 3, December 2021
Remain
770.636
350
781
Official
130
1.078.
770.636
64.424.131
4.318.
350
61.708.
381
14/05/20
15/05/20
April
Remain
Pembetln
Severance
1
82.052.
000
1.602.600
Calculation of recapitulation in May 2020 shows Income Tax Article 21 DTP amounting
to Rp 3,913,508 from Income Tax which was deducted by Rp 93,927,419, - for 127 permanent
employees. So, Income Tax paid to state coffers Rp 90,013,911,-.
While the calculation in June 2020 showed Income Tax Article 21 DTP amounting to Rp
3,513,326, - from the Income Tax which was deducted by Rp 49,348,431, - for 124 permanent
employees. So, Income Tax paid to state coffers Rp 45,835,105,-.
Thus the calculation as in figure 5 of the following is presented until June 2020, because
the procedure for filling the tax incentive billing code article 21 in April - June 2020 still
follows the provisions of PMK No. 44/2020, then for the period of July - December 2020 has
followed the provisions of PMK No. 86/2020.
Table 4. Recapitulation of Income Tax Article 21 April to June 2020
Period
Factions
Income
Income Tax
Must
Date
Recipient
Recipient
Brute
Cut
DTP
Paid
Sector
Report
April
Official
130
1.078.
770.636
64.424.131
4.318.
350
60.105.
781
05/05/20
14/05/20
Remain
Official
130
1.078.
770.636
64.424.131
4.318.
350
61.708.
381
14/05/20
15/05/20
April
Remain
Pembetln
Severance
1
82.052.
000
1.602.600
May
Official
127
1.702.
884.761
93.927.419
3.913.
508
90.013.
911
10/06/20
22/06/20
Remain
June
Official
124
891.640.
052
49.348.431
3.513.
326
45.835.
105
09/07/20
09/07/20
Remain
Furthermore, the calculation of July to December 2020 is presented as in figure 6 below,
because the procedure for filling out the tax incentive billing code article 21 in the tax period
has followed the provisions of PMK No. 86/2020.
Calculations of recapitulation in July 2020 showed Income Tax Article 21 DTP amounting
to Rp 3,429,804,- from the Income Tax which was deducted by Rp 63.8838.677, - for 125
permanent employees. So, Income Tax paid to state coffers Rp 60,458,873,-.
While the calculation in August 2020 showed Income Tax Article 21DTP amounting to
Rp 4,153,304, - from the Income Tax withheld by Rp 65,089,700, - for 127 permanent
employees. So, Income Tax paid to state coffers Rp 60,936,396,-.
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Table 5. Recapitulation of Income Tax Article 21 July to December 2020
Period
Factions
Income
Income Tax
Must
Date
Recipient
Recipient
Brute
Cut
DTP
Paid
Sector
Report
July
Official
125
1.029.
709.596
63.888.
677
3.429.
804
60.458.
873
07/08/20
11/08/20
Remain
Agst
Official
127
1.054.
719.219
65.089.
700
4.153.
304
60.936.
396
04/09/20
04/09/20
Remain
Seven
Official
127
1.052.
679.218
65.014.
429
4.078.
025
60.936.
404
10/10/20
12/10/20
Remain
October
Official
128
1.116.
424.139
65.117.
117
4.180.
733
60.936.
384
10/12/20
17/12/20
Remain
November
Official
128
1.090.
243.149
61.380.
422
3.721.
475
57.658.
947
11/01/21
14/01/21
Remain
December
Official
128
1.122.
493.138
64.012.
263
2.428.
464
61.583.
799
09/04/21
15/02/21
Remain
SPT Time Report and Reporting of Realization of Incentives Income Tax Article 21 DTP
Income Tax Article 21 borne by the government (DTP) is obtained on condition that
workers who have a gross income of no more than Rp 200 million. To be known related to tax
calculations distinguish between the requirement to obtain Income Tax Article 21 DTP and tax
calculation.
Related to the calculation of taxes, in accordance with PER-16/2016 on Technical
Guidelines for The Procedure for Withholding Deposits and Reporting income tax Article 21,
Income Tax Article 21 DTP must be paid in cash by the employer at the time of payment to
employees, while employers in addition to having to report realization for taxes that will be
borne by the government must also report their Article 21 Income Tax Period tax return every
month, as the May Tax Return Report in picture below.
Using Income Tax Incentives Article 21 Borne by the Government on Companies Impacted by Covid-19
215 Vol. 1, No. 3, December 2021
Figure 2. SPT Report in May 2020
While the Realization Report must be uploaded on the e-Reporting page by including an
attachment in the form of Tax Deposit Letter (SSP) / printed billing code stamped with the
stamp / writing "Income Tax Borne by the Government Ex PMK 9 / PMK.03 / 2021"
accompanied by a company stamp.
In Article 4 pmk No. 86/2020, employers or companies that utilize this incentive Income
Tax 21 DTP must submit a Report on the Realization of the exemption of payment of Income
Tax Article 21 for employees with the followingprovisions.
1) Submit a report on the realization of Income Tax Article 21 DTP on the
www.pajak.go.id
2) Use the form as per the example in the appendix to PMK No. 86/2020
3) Making a Tax Deposit Letter (SSP) or a printout of the Billing Code stamped or written
'Income Tax Article 21 BORNE BY THE GOVERNMENT EX PMK NUMBER... /
PMK.03 / 2020'
4) Taxpayer Companies with central status or branch status have utilized the Incentive
Income Tax 21 DTP as previously stipulated.
5) Submit the Report on the Realization of Income Tax Article 21 DTP no later than the
next 20 months after the Tax Period ends.
After the Taxpayer submits the Realization Report of Income Tax Article 21 DTP, it will
receive the following Electronic Receipt Evidence.
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Figure 3. Realization Report Income Tax 21 DTP
CONCLUSION
Based on the results of research conducted, it can be concluded that PT HSK in the
submission of the utilization of Income Tax Incentive Article 21 DTP is in accordance with
PMK No. 86/2020 which already meets the specified criteria, namely having a Business Field
Code (KLU) recipient of Income Tax Incentive Article 21 DTP, has been designated as a KITE
company (Ease of Import Export Purpose), and has submitted income tax incentives. Article
21 DTP online through the DJP website page. Furthermore, the company has followed the
Procedure for filling out the tax incentive billing code Income Tax Article 21 in april - June
2020 following the provisions of PMK No. 44/2020, while for the period of July - December
2020 has followed the provisions of PMK No. 86/2020 and has conducted Realization
Reporting on Income Tax incentives Article 21 DTP every month.
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