Terms and Conditions to Get Vocational Supertax Deduction Incentive

DEVELOPMENT of vocational education and training through cooperation with the business world needs to be supported by tax policies. As discussed in the previous tax class article, the Government of Indonesia has regulated the provision of supertax deduction incentives for taxpayers who carry out vocational activities.

The supertax deduction incentive for vocational activities is one of the efforts made by the government to form a competent workforce that is by industry needs (Kemenkeu, 2021). These incentives can provide opportunities for the industry to improve efficiency, productivity, profitability, and competitiveness.

These incentives can also expand opportunities for vocational education to collaborate with more industries. The cooperation is related to the implementation of programs that support the improvement of the quality of vocational education.

In addition, vocational education can have the opportunity to obtain more partners in curriculum development, increase the quality and quantity of learning, as well as work practice and/or apprenticeship activities (Ministry of Finance, 2021).

The provision of supertax deduction incentives is regulated in the Minister of Finance Regulation No. 128/PMK.010/2019 concerning Provision of Gross Income Reduction for the Implementation of Work Practice, Apprenticeship, and/or Learning Activities in the Context of Guiding and Developing Human Resources (HR) Based on Certain Competencies ( PMK 128/2019 ).

Based on Article 2 paragraph (2) of PMK 128/2019, taxpayers can be given a gross income reduction of a maximum of 200% of the total costs incurred for work practices, apprenticeship, and/or learning activities.

What is meant by taxpayers are domestic corporate taxpayers who incur costs for work practices, apprenticeships, and/or learning activities in the context of fostering and developing human resources based on certain competencies.

The maximum gross income reduction of 200% includes the following 2 things:

  1. reduction of gross income by 100% of the total costs incurred for work practices, apprenticeship, and/or learning activities; and
  2. additional gross income reduction of a maximum of 100% of the total costs incurred for work practices, apprenticeship, and/or learning activities as referred to in the first point.

Referring to Article 2 paragraph (3) of PMK 128/2019, in utilizing the additional gross income deduction, the taxpayer must meet 4 requirements. First, it has carried out work practices, apprenticeships, and/or learning activities in the context of fostering and developing certain competency-based human resources.

A more detailed list of certain competencies is listed in Appendix A of PMK 128/2019. What is meant by certain competencies can include the following 3 things:

  1. vocational high schools and/or vocational aliyah madrasas for students, educators, and/or education staff;
  2. higher education diploma program in vocational programs for students, educators, and/or education staff; and/or
  3. job training centers for individuals as well as trainees, instructors, and/or coaching staff.

Second, have a cooperation agreement. By Article 1 point 4 PMK 128/2019, the cooperation agreement is understood as an agreement between taxpayers and vocational high schools, vocational aliyah madrasas, college diploma programs in vocational education, job training centers, or government agencies.

The government agencies include agencies in the central manpower sector, provincial governments, or district/city governments for individuals who are not bound by a working relationship with any party,

Third, not in a state of financial loss in the tax year using additional gross income reduction. Fourth, has submitted a fiscal certificate (SKF). Referring to Article 1 number 1 PMK 128/2019, SKF is information provided by the Directorate General of Taxes (DGT) regarding taxpayer compliance during a certain period to meet the requirements for obtaining services or in the context of carrying out certain activities.

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