By: Zakaria) *
The Job Creation Law has been officially enacted. The public also hopes that these implementing regulations can immediately accelerate the opening of businesses in Indonesia.
President Joko Widodo (Jokowi) has passed 49 implementing regulations for Law Number 11 of 2020 concerning Job Creation, consisting of 45 Government Regulations (PP) and four Presidential Regulations (Perpres).
From these regulations, there are PPs that provide ease of doing business starting from the aspects of licensing, taxation and so on.
The following is a brief summary of some of the pp referred to and the ease of doing business that is offered:
Pph Article 26 discount on bond interest. The regulation offers tax convenience, one of which is a discount in the income tax rate (PPh) of article 26 on bond interest received or obtained by foreign taxpayers (WP) other than the form of business. Previously , the income tax on the bond interest was set at 20 percent, then the government gave a discount to 10 percent.
There are three types of bond interest that get the PPh Article 26 rate reduction. First, the interest on a coupon bond is the gross amount of interest over the term of the bond’s ownership.
Second, discounts on bonds with coupons equal to the difference in selling price or nominal value above the acquisition cost of the bonds, excluding current interest.
Third, the discount on interest-free bonds is the difference between the selling price or the nominal value above the bond acquisition price.
With the exception of dividends from the income tax object, this rule also excludes dividends or other income from the object of income tax which applies to dividends or other income received or earned by domestic taxpayers and corporate bodies. This provision has passed since the enactment of the Job Creation Law.
However, these domestic individual and corporate taxpayers must meet the investment requirements in Article 4 paragraph 3 letter f U U PPh.
Article 2A of the regulation reads, Dividends that are exempted from the object of income tax are dividends distributed based on a general meeting of shareholders or interim dividends in accordance with the provisions of the legislation.
Meanwhile , other income represents tax income from a permanent establishment abroad and active income from abroad not through a permanent establishment.
Furthermore, for individual taxpayers and domestic entities who do not comply with the investment provisions of the Income Tax Law, they will still receive a deduction of income tax on their dividends.
Business licensing is based on risk, in this regulation, the government classifies business licensing based on risk so that it relieves entrepreneurs.
Meanwhile , the determination of the risk level is carried out based on the results of risk analysis which must be carried out in a transparent, accountable manner and prioritizes the prudential principle based on data and / or professional judgment.
Then, article 10 classifies business activities based on their risks including:
- Low risk business activities . The business license for the said business activity is in the form of a business identification number (NIB) which is the identity of the business actor as well as the legality to carry out business activities.
- Medium low risk business activities. Business licenses for these business activities are in the form of NIB and standard certificates.
- Medium-high risk business activities. Business license for said business activity is in the form of NIB and standard certificate.
- Business activities with a high level of risk. Business licenses for these business activities are in the form of NIB and permits.
Licensing is attempted one door through Online Single Submission (OSS). Article 22 of the regulation states that the implementation of business licensing issuance is carried out only through 1 door, namely OSS.
The party authorized to issue business licenses through OSS is the Business Investment Service through OSS, namely the Provincial Investment Service and One Stop Services (DPMPTSP) at the provincial and district / city levels. Furthermore, the administrators of the Special Economic Zones (KEK) and heads of the management agency for Free Trade Zones and Free Ports (KPBPB).
In terms of licensing in the regions, the government must provide facilities because it is obliged to use OSS. Thus, entrepreneurs do not experience a complicated licensing process because all of them use an online system.
The rules of the Job Creation Law are of course a breath of fresh air for anyone who wants to become an entrepreneur, with this regulation, it is hoped that new jobs will emerge so that they will contribute to the absorption of labor.
) * The author is a citizen living in Bogor
By: Zakaria) *
The Job Creation Law has been officially enacted. The public also hopes that these implementing regulations can immediately accelerate the opening of businesses in Indonesia.
President Joko Widodo (Jokowi) has passed 49 implementing regulations for Law Number 11 of 2020 concerning Job Creation, consisting of 45 Government Regulations (PP) and four Presidential Regulations (Perpres).
From these regulations, there are PPs that provide ease of doing business starting from the aspects of licensing, taxation and so on.
The following is a brief summary of some of the pp referred to and the ease of doing business that is offered:
Pph Article 26 discount on bond interest. The regulation offers tax convenience, one of which is a discount in the income tax rate (PPh) of article 26 on bond interest received or obtained by foreign taxpayers (WP) other than the form of business. Previously , the income tax on the bond interest was set at 20 percent, then the government gave a discount to 10 percent.
There are three types of bond interest that get the PPh Article 26 rate reduction. First, the interest on a coupon bond is the gross amount of interest over the term of the bond’s ownership.
Second, discounts on bonds with coupons equal to the difference in selling price or nominal value above the acquisition cost of the bonds, excluding current interest.
Third, the discount on interest-free bonds is the difference between the selling price or the nominal value above the bond acquisition price.
With the exception of dividends from the income tax object, this rule also excludes dividends or other income from the object of income tax which applies to dividends or other income received or earned by domestic taxpayers and corporate bodies. This provision has passed since the enactment of the Job Creation Law.
However, these domestic individual and corporate taxpayers must meet the investment requirements in Article 4 paragraph 3 letter f U U PPh.
Article 2A of the regulation reads, Dividends that are exempted from the object of income tax are dividends distributed based on a general meeting of shareholders or interim dividends in accordance with the provisions of the legislation.
Meanwhile , other income represents tax income from a permanent establishment abroad and active income from abroad not through a permanent establishment.
Furthermore, for individual taxpayers and domestic entities who do not comply with the investment provisions of the Income Tax Law, they will still receive a deduction of income tax on their dividends.
Business licensing is based on risk, in this regulation, the government classifies business licensing based on risk so that it relieves entrepreneurs.
Meanwhile , the determination of the risk level is carried out based on the results of risk analysis which must be carried out in a transparent, accountable manner and prioritizes the prudential principle based on data and / or professional judgment.
Then, article 10 classifies business activities based on their risks including:
- Low risk business activities . The business license for the said business activity is in the form of a business identification number (NIB) which is the identity of the business actor as well as the legality to carry out business activities.
- Medium low risk business activities. Business licenses for these business activities are in the form of NIB and standard certificates.
- Medium-high risk business activities. Business license for said business activity is in the form of NIB and standard certificate.
- Business activities with a high level of risk. Business licenses for these business activities are in the form of NIB and permits.
Licensing is attempted one door through Online Single Submission (OSS). Article 22 of the regulation states that the implementation of business licensing issuance is carried out only through 1 door, namely OSS.
The party authorized to issue business licenses through OSS is the Business Investment Service through OSS, namely the Provincial Investment Service and One Stop Services (DPMPTSP) at the provincial and district / city levels. Furthermore, the administrators of the Special Economic Zones (KEK) and heads of the management agency for Free Trade Zones and Free Ports (KPBPB).
In terms of licensing in the regions, the government must provide facilities because it is obliged to use OSS. Thus, entrepreneurs do not experience a complicated licensing process because all of them use an online system.
The rules of the Job Creation Law are of course a breath of fresh air for anyone who wants to become an entrepreneur, with this regulation, it is hoped that new jobs will emerge so that they will contribute to the absorption of labor.
) * The author is a citizen living in Bogor
