The Effects of Covid-19 on
International Taxation
Practices
Directorate of International Taxation
Directorate General of Taxes
Tax Incentives in Other Countries
France Italy Korea Rep.
Income Tax Income Tax VAT
Corporate Income Tax Personal Income Tax
Tax payment deferral for individuals and Special 30% tax Exemption of VAT for
Tax reduction for Adjustment of tax rate companies located in 11 Red Zones from reduction for affected business whose turnover
affected companies for affected individuals. February to April. SMEs. is below KRW 48-million.
(case-by-case). Tax installment deferral Postponement of all legal proceedings (audits, Addition of personal
Tax installment deferral (three times for objections, and appeals) until 31 May 2020. allowance from March to
without penalty. monthly payment and Payment deferral of social security contribution, June.
one time for quarterly income tax, and VAT for affected businesses. Increase in threshold of
payments). Tax deferral for business whose turnover is deductible expense for
below EUR 2-million. entertainment expense.
P.R. China Singapore Malaysia
Income Tax VAT Income Tax Income Tax
Extension of loss carry- VAT exemption for Acceleration of depreciation. Fiscal stimulus to improve investment qualities
forward for 8 years. lifestyle services. 25% reduction of Corporate Income Tax not and acceleration of strategic projects.
Tax exemption for Compensable VAT exceeding SGD15,000. Acceleration of depreciation.
medical personnels. refund for specific Loss carry-back for 3 years not exceeding Tax exemption for importing goods, machineries,
Donations for non- industries. SGD100,000. and equipments at the seaports.
profit or government 75% government-borne Income Tax for 4% reduction of social security contribution.
entities are deductible employees on April not exceeding SGD4,600.
for income tax.
Tax Incentives in Indonesia
Incentives Target
Government-Borne Employees whose income come from certain
Income Tax Art. 21 employer (1.062 sectors), Import Facilities for
Export Purposes (KITE), and Bonded Zone.
Government-Borne SMEs whose turnover are not more than IDR
Income Tax for SMEs 4,8-billion.
VAT
Exemption of Income Tax Specific taxpayers (431 sectors), Import
Art. 22 Facilities for Export Purposes (KITE), and • VAT exemption on import by certain
Bonded Zone. taxpayers.
30% Reduction of Income Specific taxpayers (846 sectors), Import • Government-borne VAT on specific goods
Tax Art. 25 Installment Facilities for Export Purposes (KITE), and and services to specific parties.
Bonded Zone.
• VAT exemption on specific foreign services
Preliminary Refund for Low-risk taxpayers whose VAT over-payment
VAT are not more than IDR 5-billion. by certain parties.
Tax Facilities for Medical Government bodies, hospitals, and other
Equipments parties involved in recovery from Covid-19. Income Tax
• Exemption of Income Tax Art. 21 on specific
services to individuals.
• Exemption of Income Tax Art. 22 on import
and purchase of specific goods.
• Exemption of Income Tax Art. 22 on sale of
goods to sepcific parties.
• Exemption of Income Tax Art. 23 on specific
services.
GRILL 1 of 2020
Government Regulation in Lieu of the Law No. 1 of 2020 concerning Policies of State
Finance and Financial System Stability during the Recovery from Covid-19 in order to
Respond Threats for National Economy and/or Financial System Stability
2020-2021: 22%
State Finance Policy
Adjustment of Income Tax 2022: 20%
Budgeting & Financing rate for companies and PEs 3% additional reduction for public-
listed companies (40% shares)
Regional Finance VAT
Tax Policy Taxation of e-Commerce Income Tax
Extension of time for
Economic Recovery fulfilling tax obligations Electronic Transaction Tax
Custom facilities
Significant Economic Presence
Global Consolidated Turnover
Fairness
Sales in Indonesia
Level
User Participation Playing
Field
Digital Services Taxes
Austria–DST–5% Italy–DST–3%
Global > € 750 million Hungary–DST–7,5% Global >€ 750 million
Local > € 25 million Global > € 300.000 Local >€ 5,5 million
Online Advertising • Online Ad
• Online Ad (Provision &
• Digital Intermediation Services
Contribution only)
• Sale of User Data
U.K.–DST–2% France–DST–3%
Global >₤ 500 million Global > €750 million
Local > ₤ 25 million Local > €25 million
• Social Media • Online Ad
• Search Engine • Digital Intermediation Services
• Online Marketplace • Sale of User Data
Turkey–Digital Tax–7,5%
Uruguay–DST–12% Global > € 750 Juta
Lokal > Local > € 3,2 Juta
• Audio/Video Services • Online Ad India–Equalisation Levy–6%
• Digital Mediation or • Audio/Video Services
• Online Intermediation Services Lokal > USD 1500
Intermediation Services
Online Advertising Purchased by
Indian Buyers
THANK YOU
Ministry of Finance of the Republic of Indonesia
Directorate General of Taxes
