Based on the regulation of the Minister of Finance of the Republic of Indonesia Number 69/PMK.03/2022 regarding income tax and value added tax on the implementation of financial technology, as of May 1, 2022, KoinWorks will deduct income tax from PPh 23 from the gross amount of return you get as a lender of KoinP2P and KoinRobo products.
Thus, all returns received by KoinWorks customers from yields (interest) as lenders as of May 1, 2022 will automatically be deducted from PPh 23 in the amount of:
- 15% for Indonesian lenders who have NPWP (Tax Identification Number)
- 20% for foreign lenders
- or 30% for Indonesian lenders who do not have NPWP
However, don’t be sad because of this taxation, KoinWorks will provide an interesting offer. As of May 1, every new funding on KoinP2P will not be subjected to commission a.k.a. COMMISSION FREE!
Here are the FAQs you need to know about the Imposition of Tax on Financial Technology Providers PMK No. 69/PMK.03/2022:
Daftar Isi
- 1. What do I need to do to get the right tax?
- 2. When can I start adding my NPWP in the KoinWorks app?
- 3. So, as long as I can’t enter my NPWP in the KoinWorks application, my return will be subjected to 30% PPh?
- 4. How does the tax refund process work?
- 5. After May 20, can I still upload my NPWP?
- 6. Will I get a proof of deduction from KoinWorks?
- 7.How about the tax deduction for ongoing loans?
- 8. Is there a tax refund that has been deducted from a loan that has failed to pay?
- 9. Is this the final tax?
- 10.What does Commission Free mean for KoinP2P?
- 11. Can the tax rate for foreigners be less than 20%?
- 12. How does the special treatment mechanism related to tax deductions for foreigners who have resident tax from their country of origin work?
- 13. What if it turns out that my NPWP is invalid?
- 14. Can I still revise my NPWP if the number is deemed invalid by the tax office?
1. What do I need to do to get the right tax?
Make sure that you’ve updated your legal data in the KoinWorks application in the “Nationality” section and make sure you’ve also added your NPWP info.
2. When can I start adding my NPWP in the KoinWorks app?
Currently, the addition of new NPWP info is available in the iOS app. As for Android, KoinWorks is still developing features to add NPWP.
KoinWorks will immediately inform all lenders via email, apps, and social media when the feature is available.
3. So, as long as I can’t enter my NPWP in the KoinWorks application, my return will be subjected to 30% PPh?
Yes. As long as this feature is not available yet, KoinWorks will charge 30% PPh. However, don’t worry, after the feature is available and you have updated your NPWP at KoinWorks, then KoinWorks will provide a 15% refund via your Fintech Account balance.
4. How does the tax refund process work?
After KoinWorks informs you of the addition of the NPWP feature, immediately download the KoinWorks application both on the App Store and Play Store. Enter your NPWP by accessing the Profile menu > Update > Legal Information before May 20, 2022.
The 15% tax refund fund will be returned to your Fintech Account a maximum of June 25, 2022.
5. After May 20, can I still upload my NPWP?
Yes, you can, but you will not receive a 15% tax subsidy from KoinWorks on the interest that’s received on the next date.
Example: You input your NPWP on May 30, then the interest received on May 21 – 29 will be deducted by 30% but after May 30, 15% will be deducted according to PMK Number 69/PMK.03/2022.
6. Will I get a proof of deduction from KoinWorks?
Yes, you will get proof of tax deduction with an estimate of 2 months after the end of the period in question.
For example, for the tax withholding receipt for the month of May, you will receive the tax withholding receipt at the end of July.
However, we will try to be provide it quicker, relying on the withholding proof issuance system from the Directorate General of Taxes of the Republic of Indonesia.
If it is later than 2 months or there are problems from the provider, we will inform the Lenders.
We will send the proof of tax deduction to your email address registered in KoinWorks.
7.How about the tax deduction for ongoing loans?
Based on PMK regulation No.69/PMK.03/2022 for PPh Article 23 and PPh Article 26, as of May 1, 2022, there will be deductions even though funding is made before May 1, 2022.
8. Is there a tax refund that has been deducted from a loan that has failed to pay?
None, according to PMK No.69/PMK.03/2022 Article 2 paragraph 5.
| Pros | Cons | What Can I Do? |
| Income tax deductions are evenly distributed to every lender who has P2P interest income, which is 15% | For those who have an interest income of < IDR 50,000, this is less profitable because previously the low limit was at 5% | – |
| For those who have an interest income > IDR 500,000, this is profitable | Funder’s personal data information needs to be updated | Be sure to enter your NPWP, so that the tax charged is only 15%, not 30% |
| – | When a loan defaults, the interest that has been received and is subjected to tax cannot reduce the loss from default | Choose a lump sum pay out such as KoinInvoice on KoinP2P or KoinRobo |
9. Is this the final tax?
No, because the imposition of this tax is an income tax in the withholding of PPh 23 and PPh 26, it is included in the object of Withholding Tax.
This means that the tax will be withheld by a third party, which is KoinWorks.
Lenders who are Domestic Taxpayers can credit the Income Tax that has been deducted in calculating the Income Tax Payable in the SPT (Annual Tax Return).
As a simulation:
Lender’s interest income in 1 year = IDR 1,000,000
15% tax deducted by the P2P Lending platform = IDR 150,000
Lender’s Personal Income Tax Rate = 20%
The original underpayment value (if you do not attach proof of deduction) = IDR 200,000
Underpaid value when attaching proof of deduction = IDR 200,000 – IDR 150,000 = IDR 50,000
10.What does Commission Free mean for KoinP2P?
Effective from May 1, 2022, new funding at KoinP2P is commission free. However, for funding that has been carried out before May 1, 2022, a commission fee will still be charged as before.
Funding before May 1, 2022:
No changes with the following details:
- Type of payment lump sum or at the end of the tenor (such as KoinInvoice): 5% of the interest received
- Payment type installment or per month (other than KoinInvoice): 1% of interest + principal received
Funding after 1 May 2022:
0% of all loan products on KoinP2P.
11. Can the tax rate for foreigners be less than 20%?
Yes, if the foreigner sends the DGT Form, attaching a Certificate of Residence/Domicile from the authority where the foreigner is domiciled for the tax year concerned to KoinWorks, also if the foreign country of residence has an agreement to avoid double taxation with the Republic of Indonesia.
If these conditions are met, foreigners can get a discount rate lower than 20% (depending on applicable regulations) since the document is received in full by KoinWorks and has been reported to the Directorate General of Taxes.
To get this special treatment, please contact KoinWorks customer service (KoinCare) via email [email protected].
KoinWorks Customer Service will help you get the special treatment.
When it comes to repayment, KoinWorks still cuts 20% of the yield. However, on the 15th of the following month, KoinWorks will refund the tax difference by adding the balance to the KoinWorks fintech account.
13. What if it turns out that my NPWP is invalid?
The validity of your NPWP is verified by the tax office at the time of reporting by KoinWorks which is carried out in the following month for taxes withheld in the previous month.
If it turns out that your NPWP is invalid, then KoinWorks is obliged to collect the difference in tax deductions that occur through deductions from your KoinWorks account balance. And if it doesn’t work, then the collection is done directly by the tax office which is reflected in your SPT (Annual Tax Return) reporting.
Example: You add your NPWP on May 1, 2022 but the number is invalid, then your tax deduction from that date is 15%. During the month of May 2022 you receive IDR 1,000,000 interest with a tax deduction of IDR 150,000. Then, KoinWorks makes a tax report on your transaction on June 10, 2022 and by the tax office your NPWP is declared invalid. So KoinWorks is obliged to collect the difference in withholding taxes because your tax deduction should be 30% (because your NPWP is not valid) which is IDR 300,000 and there is a difference of IDR 150,000.
The collection for the difference in withholding taxes will be made by deducting your KoinWorks account balance and you will receive a notification for the transaction.
14. Can I still revise my NPWP if the number is deemed invalid by the tax office?
You can change your NPWP in the application, but tax deductions does not apply retroactively. Which is where the tax deduction to 15% will be done after you revise your NPWP.
What are you waiting for? Upload your NPWP in the KoinWorks app right now!