The vocation supertax deduction INCENTIVE is realized by providing an additional gross income reduction of a maximum of 200% of the total costs incurred by the taxpayer.
Meanwhile, in the context of vocational supertax deduction incentives, costs that can be used to reduce gross income are costs related to implementing work practices, apprenticeships, and/or learning activities.
The breakdown of costs that receive additional gross income reduction 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 Based on Certain Competences ( PMK 128/2019 ).
So, what are the costs that get an additional reduction in gross income? Based on Article 4 PMK 128/2019, there are 5 groups of costs for vocational activities that can obtain additional gross income reductions.
First, the provision of special physical facilities in the form of a training place and the cost of supporting special physical facilities. Supporting special physical facilities may include electricity, water, fuel, maintenance costs, and other related costs to implement work practices and/or apprenticeship activities.
In addition, by Article 5 letters c and d of PMK 128/2019, there are 2 types of costs for the provision of special physical facilities which can also be given an additional reduction in gross income.
In this case, the fee is charged proportionally based on the utilization associated with work practices and/or apprenticeship activities. The 2 types of costs are as follows:
- the cost of providing special physical facilities in the form of training places which are tangible goods that have a useful life of more than one year and are not fully used for 1 tax year for work practices and/or apprenticeship activities; as well as
- the cost of providing special physical facilities in the form of a training place, including the cost of electricity, water, and fuel which cannot be separated between costs for commercial production purposes and costs related to the implementation of work practices and/or apprenticeships.
For the cost of tangible and intangible goods related to the provision of physical facilities, the additional reduction in gross income is calculated based on the depreciation or amortization costs of tangible and intangible goods.
The cost of depreciation or amortization of tangible and intangible goods is charged to the month the work practice and/or apprenticeship activities are carried out.
In addition to the tangible and intangible goods, the additional gross income deduction is calculated from the actual costs incurred in the relevant tax year.
For information, additional gross income reduction for the provision of special physical facilities cannot be given if the physical facilities used are part of an investment that has received a net income reduction facility.
Second, instructors or lecturers serve as supervisors for implementing internships and/or learning activities. Third, goods and/or materials to implement the internship and/or learning activities.
Fourth, honorarium or similar payments are given to students, individuals who are not bound by a working relationship with any party, educators, education staff, and/or infrastructure who are participants in work practices and/or apprenticeships.
However, additional gross income deductions for this expense group cannot be given if the apprentice participants have blood, business, and/or control family relations with the owners, commissioners, directors, and/or administrators of the taxpayer.
Fifth, the cost of competency certification for students, individuals who are not bound by a working relationship with any party, educators/trainers, education/training staff, and/or instructors who are apprentices.
Referring to Article 5 letter f of PMK 128/2019, additional gross income reduction on the cost of using physical facilities, materials, and/or goods used in commercial production can only be given for certain costs. The specific costs in question are the group of costs in the second, fourth, and fifth points.
A reduction in gross income can be charged as an expense if it does not result in a tax loss in the current year. If the additional reduction in gross income results in a tax loss, the amount of the additional reduction in gross income must be adjusted to the amount that did not cause the loss.