The Impact of Perppu 2/2022 on Tax
15 February 2023

Within this article, we will discuss that specifically related to Taxation which is regulated by Perppu 2/2022 on Job Creation ("Perppu 2/2022"), therein stipulates minor changes which are not interrelated to the recent enactment of by the Taxation Regulation Harmonization Law ("UU HPP").


It should be noted that in principle Perppu 2/2022 is an improvement that does not change the substance that has been regulated in Law No. 11 of 2020 regarding Job Creation (“Job Creation Law”). This is done by rewriting the Job Creation Law without rewriting the substance that has been regulated in UU HPP.


In the amendment by Perppu 2/2022, it discusses several clusters regarding taxation, namely related to income tax regulated in Law No. 7 Year 1983 ("Law 7/1983"). In the discussion of income tax, there are several things that have been added related to Tax Subjects and Income Tax Withholding.



In addition, it also discusses Law No. 8/1983 on Goods and Services Value Added Tax and Sales Tax on Luxury Goods ("Law 8/1983"). There are 4 Articles of Law No. 8/1983 that were previously amended by the Job Creation Law, namely Article 1A, Article 4A, Article 9 and Article 13. Currently, Article 4 and Article 9 of Law No. 8/1983 are not included in Perppu 2/2022 because these Articles have previously been re-regulated in UU HPP. For this reason, it is important to note that Perppu 2/2022 in principle does not change the substance that has been regulated in the Job Creation Law. The changes in Article 1A and Article 13 of the Law by Perppu 2/2022 are adjustments to Job Creation Law.



For the last one, we will discuss Law Number 6 Year 1983 regarding General Provisions and Tax Procedures ("Law 6/1983"). In summary, this regulation discusses the imposition of administrative sanctions in the form of interest and the provision of interest rewards based on the benchmark interest rate determined by the Minister of Finance, criminal taxes that have been decided are no longer issued SKPKBT, and removing “forgiveness” of taxpayer sanctions for acts committed for the first time. However, there are several articles that are not re-written in Perppu 2/2022 because they refer to the Law No. 7/2021, such as Norms related to Tax Collection Letter and Norms related to Termination of Criminal Investigation in the Field of Taxation.



Based on the explanation above, it can be seen that there are no substantial changes by the Perppu 2/2022, which most of the content follows the Job Creation Law. That most of the changes are only technical and editorial in a sentence, while there are articles that are not rewritten in Perppu 2/2022 because they are already regulated in UU HPP.


Should there be any queries related to this regulation or to find out if this affects your business or personal interest, please do not hesitate to contact us.

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