APPLICATIONS for the tax allowance facility are submitted online through the Online Single Submission (OSS) system. However, in certain situations, applications for submitting tax allowances can also be submitted offline.
The procedure for applying for a tax allowance offline is regulated in Government Regulation no. 78 of 2019 concerning Income Tax Facilities for Investment in Certain Business Fields and/or in Certain Regions ( PP 78/2019 ) and its derivatives rules.
The 2 derivative rules include, first, the Minister of Finance Regulation No. 96/PMK.010/2020 concerning Amendments to the Regulation of the Minister of Finance No. 11/PMK.010/2020 concerning the Implementation of Government Regulation No. 78 of 2019 concerning Income Tax Facilities for Investment in Certain Business Fields and/or in Certain Regions ( PMK 96/2020 ).
Second, the Regulation of the Investment Coordinating Board No. 5 of 2020 concerning Procedures for Submission of Applications for Corporate Income Tax Facilities for Investment in Certain Business Fields and/or in Certain Areas Over the Network (BKPM Regulation 5/2020).
Based on Article 5 paragraph (5) of PP 78/2019 in conjunction with Article 7 paragraph (1) of PMK 96/2020, the application for an offline tax allowance facility can only be made if the OSS system is not available. 3 circumstances cause the OSS system to be considered unavailable as stated in Article 2 paragraph (4) of BKPM Regulation 5/2020.
First, the OSS system was in such a troubled state that it was inaccessible for five days. Second, is the unavailability of an internet network in certain districts/cities to upload applications. Third, is the condition of force majeure .
Referring to Article 3 paragraph (4) of BKPM Regulation 5/2021, if the application document is declared incomplete and correct, BKPM will return the application accompanied by a detailed record of the verification results. If the application document is returned, the corporate taxpayer can re-apply after correcting and/or completing the application document.
Meanwhile, if the application is declared complete and correct, BKPM will issue a receipt for the application. Then, against the application, the head of BKPM or the appointed official issues a decision on the granting of income facilities no later than five days.
The decision to grant the tax allowance facility can be signed with a wet signature or an electronic signature. For information, according to Article 3 paragraph (8) of BKPM Regulation 5/2021, electronic signatures have the same legal force as documents issued by the officials concerned in the form of wet signatures.