Indonesian therapy of taxes, duties and excise duties in particular financial zones

PMK-33 concerns taxes, duties and excise duties in SEZ

The Minister of Finance (MoF) has issued Regulation No. 33 / PMK.010 / 2021 (PMK-33) amending Regulation No. 237 / PMK.010 / 2020 (PMK-237) on tax, customs and excise tax relief in special economic zones (SWZ).

PMK-33: The business entity has authorization as a business entity to build and / or manage the SEZ from the state institution. In order to receive tax relief, the business entity in the SEZ must apply via the SEZ application system, whereby the IT inventory must be used by business entities with companies that have more than one category.

VAT exemption for the supply of clean water

On April 6, 2021, the government issued Ordinance No. 58 year 2021 (GR-58) amending GR-40 year 2015 with regard to VAT exemption for the supply of clean water. GR-58 applies from April 7, 2021.

The definition of clean water has been expanded to include installation and fixed load costs, with the definition of installation costs and clean water costs also being explained in the regulation. Even ready-to-drink clean water (drinking water) does not include bottled drinking water.

Tax treaties for Indonesia and Australia / United Arab Emirates

On February 18, 2021, the Director General for Taxes published Circulars SE-05 / PJ / 2021 and SE-18 / PJ / 2021 on the notification of the entry into force of the Multilateral Agreement on the Implementation of Measures related to the Tax Agreement in the context of the Prevention of BEPS between Indonesia and Australia or Indonesia and the United Arab Emirates (UAE).

The scope of the circulars consists in the enforceability of the DTAs between Indonesia-Australia and Indonesia-UAE, the signing and issuing procedure between the governments, the applicable point in time for the points of the agreement (DTA) between Indonesia-Australia and Indonesia applicable to the double taxation agreement. UAE. These circulars are also intended to inform all units of the Tax Directorate-General.

Based on Article 35 of the Agreement, the provisions in each Contracting State with regard to the tax treaty concerned apply:

  • In relation to withholding taxes on amounts paid or credited to non-residents if the event of the tax increase occurs on or after January 1, 2021; and
  • With respect to all other taxes levied in relation to tax periods beginning on or after January 1, 2022 in Indonesia and June 26, 2021 in Australia and the UAE.

The main points of the provisions of the Convention that apply to the DTA can be found in the following articles:

  • Article 4 (1) and (3), Article 6 (1), Article 7 (1), Article 9 (1), Article 11 (1), Article 13 (1), Article 14 (1), Article 15 (1), Article 16 ( 3) for the DTA Indonesia-Australia; and
  • Article 6 paragraph (1), Article 7 paragraph (1), Article 16 paragraph (1) and (2), Article 17 paragraph (1) for the DTA Indonesia-UAE.

Rest for the finance court

On March 29, 2021, the chairman of the tax court issued Circular No. SE-05 / PP / 2021 regarding the setting of a break time for the tax court hearings in relation to Idulfitri 1442 H.

In summary, the tax court has postponed all tax court hearings scheduled for May 5, 2021 to May 25, 2021. The negotiation sessions resumed on May 27, 2021. Exceptions apply to disputes that will soon become due.

Temporary import and export of motor vehicles

On March 1, 2021, the General Customs Directorate (DGC) issued the DGC Regulation No. PER-05 / BC / 2021 (PER-05) on the "Guidelines for the temporary import and export of motor vehicles through cross-border control posts".

PER-05 is an implementation guideline of the MoF Regulation No. PMK-52 / PMK.04 / 2019 (PMK-52) on the "temporary import and export of motor vehicles through cross-border control points", which simplifies motor vehicle traffic in cross-border and temporary Import and temporary export process with a single document.

Charles Oetomo

Partner, GNV Consulting

Welly Armantha Napitupulu

Senior Manager, GNV Consulting

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