This is the Cause of Supertax Deduction for Vocational Activities Not Given

INCENTIVE supertax deduction for vocational activities can be given if the corporate taxpayer has met the requirements and submitted the stipulated application process. However, several conditions prevent corporate taxpayers from taking advantage of these incentives.

This condition has been 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 ).

Referring to Article 9 PMK 128/2019, some of the conditions referred to include, firstly, it is known that corporate taxpayers have not made a cooperation agreement that contains complete information and is by applicable regulations.

It should be understood that the cooperation agreement should contain 8 components as stipulated in Article 7 paragraph (3) of PMK 128/2019. These components include the number and date of the cooperation agreement, the name and Taxpayer Identification Number (NPWP), the type of competency being taught, and the name of the agency that is bound in the cooperation agreement.

Other components that must also be met are the effective date and validity period of the cooperation, the estimated number of participants in work practices and/or apprenticeships, the estimated number of employees and/or other parties assigned, and the estimated cost and year of expenditure.

Second, supertax deduction incentives for vocational activities cannot be given if the corporate taxpayer carries out activities that are not by the competency plan being taught. Regarding the competency plan that is taught, it must be by what is stated in the cooperation agreement.

Third, corporate taxpayers do not submit notifications of cooperation agreements and fiscal certificates (SKF) that are still valid. Fourth, corporate taxpayers do not submit a report on the cost of vocational activities after the end of the reporting period or submit a report that does not meet the format listed in Attachment D of PMK 128/2019.

The description of the procedure for reporting the vocational supertax deduction incentive can be seen in the previous article.

Evaluation of the Effectiveness of Incentives

IN addition to the four points above, another important thing that needs to be understood in obtaining supertax deduction incentives for vocational activities is related to the evaluation of the provision of these incentives.

The reason is, that after obtaining approval to take advantage of the supertax deduction incentive for vocational activities, taxpayers who organize these activities will be evaluated by the relevant ministries and/or agencies.

The evaluation process for the provision of incentives is regulated in Article 10 paragraph (1) of PMK 128/2019. An evaluation was conducted to see the effectiveness of providing supertax deduction incentives for vocational activities.

There are 5 ministries and/or agencies that can evaluate the effectiveness. First, is the ministry or provincial regional service that carries out government affairs in the field of education.

Second, is the ministry that administers the government in the field of religion. Third, is the ministry that organizes the government in the field of higher education. Fourth, is the ministry or provincial/municipal regional service that administers the government in the field of manpower. Fifth, is the ministry that supervises the sector of the taxpayer.

The evaluation carried out by the ministry and/or service may include the suitability of the program, the expertise of the instructor or instructor, increasing the competence of the participants, and/or the submission of manpower from the participants of vocational activities. Furthermore, the evaluation results will be submitted to the DGT through the Director of Tax Regulations II.

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