Investor Presentaiton

3. GENERAL PROVISIONS AND TAX PROCEDURES (KUP) 1. ID Number as Individual Taxpayer Number . . The integration of the population database with the tax administration system aims to make it easier for individual taxpayers to fulfill their tax rights and obligations, and for administrative simplicity and supporting the national interest. The policy does not immediately causes every individual to pay income tax. They become taxpayers when: a. Earn annual income above non-taxable income threshold (PTKP), or b. Generates gross turnover above Rp500million in a taxable year for entrepreneurs utilizing final tax rate at 0,5% (PP-23/2018). 2. The amount of fine at the time of tax examination or tax appeal To promote fairness and legal certainty, the amount of fines at the time of tax examination and tax appeal are reduced. The policy align with the spirit of provisions in the Job Creation Law. a. Fine of tax audit and fine for taxpayers not submitting tax filing and not maintaining bookkeeping. b. Fine after legal remedies, but the objection/court decision confirms the DGT's decision. Items KUP Law HPP Law Action KUP Law HPP Law Underpaid Income 50% Tax Monthly interest equals to benchmark rate+20% uplift factor (max. 24 months) Objection 50% 30% Under-withheld 100% Income Tax Undeposited 100% Monthly interest equals to benchmark rate+20% uplift factor (max. 24 months) 75% Appeal 100% 60% Judicial Review 100% 60% withheld Income Tax Underpaid VAT & 100% 75% Luxury Tax 69

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