Open AccessThe socialization of tax deferral and MSME resilience strategies during the COVID-19 pandemic
Author(s) -
Kosasih Kosasih,
Kholida Atiyatul Maula,
Masykur H Mansyur
Publication year - 2021
Publication title -
community empowerment
Language(s) - English
Resource type - Journals
eISSN - 2621-4024
pISSN - 2614-4964
DOI - 10.31603/ce.4950
Subject(s) - deferral , business , tax incentive , value added tax , income tax , public economics , economics , finance
Several support programs have been issued by the Indonesian government to tackle the COVID-19 effects. These efforts were also geared towards overcoming the current economic problems, while sustaining public purchasing power. A typical instance includes the MSMEs tax deferral policy. Therefore, the purpose of this study is to provide a detailed information on the MSMEs tax deferral initiative by the Indonesian government during the COVID-19 pandemic. This activity was conducted online using Zoom, with the attendance of numerous business owners in Karawang regency. The form of these tax incentives encompassed income tax (PPh) Article 21 (DTP), final income tax, final PPh in certain labor-intensive sectors, exemption of income tax Article 22 on Import, reduction of income tax Article 25 installments and preliminary return of VAT (value-added tax). Based on this research, the public were well-informed on the MSMEs tax deferral provision, and were therefore encouraged to explore the inherent opportunities.