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Indonesian Pocket Tax Book 2010
PT Prima Wahana Caraka
Corporate Income Tax Tax rates; Tax residence; Tax payments; Business profits; Disallowed deductions; Losses; Profit distributions; Deemed profit margins; Special industries and activities; Tax concessions; Transfer Pricing Individual Income Tax Tax rates; Main personal relief; Tax residence; Registration and filing; Tax payments; Exit tax; Benefits-in-kind; Jamsostek – social security; Deemed salaries Withholding Taxes Tax Treaties Capital Allowances Depreciation; Asset transfers; Revaluation of fixed assets Value Added Tax General; Tax facilities; VAT and LST in Batam Luxury Sales Tax Taxable goods other than motor vehicles; Motor vehicles Stamp Duty Land and Building Tax Payments and Tax Return Filing Accounting for Tax Tax Assessments and Tax Audits Tax Collection Using Distress Warrant Tax Dispute and Resolution Objections and appeals; Another avenue for tax dispute resolution; Judicial Review requests to the supreme court Import Duty ASEAN duty rates, FTA Agreement Duty Rates, Duty relief/exemption/ deferral; BKPM masterlist facility; Bonded zone; Bonded warehouse; KITE (Kemudahan Impor Tujuan Ekspor, previously BAPEKSTA/BINTEK) facilities; FTZ in Batam, Bintan, Karimun; MITA Lanes; Import licenses; Customs compliance environment and administrative penalties Contacts 1
24 32 42 48 63 69 71 76 81 83 89 91
Corporate Income Tax
A flat rate of 25% applies from 2010. Public companies that satisfy a minimum listing requirement of 40% and other conditions are entitled to a tax discount of 5% off the standard rate, giving them an effective tax rate of 20% (Refer to page 11). Small enterprises, i.e. corporate taxpayers with an annual turnover of not more than Rp50 billion, are entitled to a tax discount of 50% off the standard rate which is imposed propotionally on taxable income of the part of gross turnover up to Rp4.8 billion.
A company is treated as a resident of Indonesia for tax purposes by virtue of having its establishment or its place of management in Indonesia. A foreign company carrying out business activities through a permanent establishment (PE) in Indonesia will generally have to assume the same tax obligations as a resident taxpayer.
Resident taxpayers and Indonesian PEs of foreign companies have to settle their tax liabilities either by direct payments, third party withholdings, or a combination of
Indonesian Pocket Tax Book 2010
and 25 income taxes) and the tax paid abroad (Article 24 income tax) are less than the total corporate tax due. A monthly tax instalment is generally calculated using the most recent corporate tax return. finance lease companies. Monthly tax instalments (Article 25 income tax) constitute the first part of tax payments to be made by resident taxpayers and Indonesian PEs as a prepayment of their current year corporate income tax liability.) If the total amounts of tax paid in advance through the year (Articles 22.Corporate Income Tax both. Such a payment is referred to as Article 29 income tax. Special instalment calculations apply for new taxpayers. The tax withheld by third parties on certain income (Article 23 income tax) or tax to be paid in advance on certain transactions (e. the company concerned has to settle the shortfall before filing its corporate income tax return.. banks and state-owned companies.g. 23. Article 22 income tax on imports) also constitute prepayments for the current year corporate tax liability of the income recipient or the party conducting the import. Foreign companies without a PE in Indonesia have to settle their tax liabilities for their Indonesian-sourced income through withholding of the tax by the Indonesian party paying the income. 2 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . (Refer to pages 28-30 for income items subject to Article 23 income tax and pages 24-26 for transactions subject to Article 22 income tax.
the tax withheld by third parties (referred to as Article 4.2. 50% of the acquisition and maintenance costs of certain company PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 3 . (Refer to pages 27-28 for income items subject to final income tax under Article 4.. In this respect.Corporate Income Tax Certain types of income earned by resident taxpayers or Indonesian PEs are subject to final income tax.g.2 income tax) constitutes the final settlement of the income tax for that particular income. and maintain taxable business profits. Generally.) For foreign companies without a PE in Indonesia. a deduction is allowed for all expenditure incurred to obtain. the tax withheld from their Indonesia-sourced income by the Indonesian party paying the income (Article 26 income tax) constitutes a final settlement of their income tax due. (Refer to pages 30-31 for income items subject to Article 26 income tax.) Business profits Taxable business profits are calculated on the basis of normal accounting principles as modified by certain tax adjustments. collect. Disallowed deductions These include: a. A timing difference may arise if an expenditure recorded as an expense for accounting can not be immediately claimed as a deduction for tax. Benefits-in-kind (BIKs) (e. free housing.
. Non-business gifts and aid.g. accommodation for ship crews and the like. Expenses relating to income which is exempt from tax. unless the contributions are treated as part of the taxable income of employees. i.g. d. Profit distributions. except food and drink provided to all employees. the cost of providing BIKs in remote areas. h. f. interest on loans used to buy shares where Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia 4 . Tax penalties. Employer contributions for life. and area closure and maintenance provision for industrial waste processing businesses.. certain types of provision are claimable as deductible expenses: provision for doubtful accounts for banking and financing companies. transportation costs to and from the place of work. health and accident insurance and contributions to unapproved pension funds. employee benefits required for job performance such as protective clothing and uniforms. c. deposit security provision for the Deposit Insurance Corporation (LPS). Expenses relating to income which is taxed at a final rate. forestation provision for forestry companies. Provisions: However. insurance claims provision for insurance companies. Income tax payments. e. except zakat (Islamic alms). e. and 50% of the acquisition and maintenance costs of cellular phones. provided cars). interest on loans relating to time deposits. reclamation provision for mining companies. Private expenses. g.Corporate Income Tax b. e. j.
If these conditions are not met. the dividends are assessable to the company earning the dividends at PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 5 . Tax consolidation is not available. a cooperative. and • the company earning the dividends holds at least 25% of the paid-in capital in the company distributing the dividends. The carrying-back of losses is not allowed. Profit distributions a. or a state-owned company (BUMN/ BUMD). are exempt from income tax if the following conditions are met: • the dividends are paid out of retained earnings. the period can be extended for up to ten years. However. for a limited category of businesses in certain regions or businesses subject to certain concessions. dividends to be received are not subject to income tax. Tax is withheld from dividends as follows: Resident recipients Dividends received from an Indonesian company by a limited liability company incorporated in Indonesia (PT).Corporate Income Tax k. Losses Losses may be carried forward for a maximum of five years. Salaries or compensation received by partnership or firmas members where their participation is not divided into shares.
commanditaires.80% 6 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . which constitutes a prepayment of the corporate tax liability for the company earning the dividends. Upon declaration. Deemed profit margins The following businesses have deemed profit margins for tax purposes: Deemed Profit on Gross Revenue Domestic shipping operations Domestic airline operations 4% 6% Effective Income Tax Rate 1.Corporate Income Tax the ordinary tax rates alongside the company’s other income. dividends are subject to Article 23 income tax at 15%. Non-resident recipients: 20% (lower for treaty countries) final withholding tax is due on dividends paid to a non-resident recipient. foundations and similar organisations are always subject to 15% withholding tax. Dividends received by firmas. b. Dividends received by resident individual taxpayers are subject to final income tax at a maximum rate of 10%.20%1 1.
64% 1 3.Corporate Income Tax Foreign shipping and airline operations Foreign oil and gas drilling operations Certain Ministry of Trade representative office 1 6% 15% 1% of export value 2. Special Industries and activities Companies engaged in upstream oil and gas and geothermal industries typically have to calculate corporate income tax in accordance with their production sharing contracts (PSCs). Different provisions may apply to them pertaining to corporate tax PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 7 . BPT rate varies according to availability of a reduced rate based on tax treaties.25% 2 The effective income tax rate (eitr) is calculated using the old tax rate of 30% because the Minister of Finance (MoF) has not revised the decrees which regulate the deemed profit margins. and taxable at 25%. Certain companies engaged in metal.75% 2 0. 2 For toll manufacturing services relating to children’s toys rendered by a resident company to its foreign affiliates. taxable income is deemed to be 7% of the total manufacturing costs. mineral and coal mining are governed by a contract of work (CoW) for the income tax calculation. excluding direct materials. The eitr is calculated using the current tax rate of 25%.
consolidations. deductible expenses and how to calculate taxable income. To obtain this approval. a tax-neutral merger or consolidation. within one year of the DGT’s approval being given. while losses are generally claimable as a deduction from income. However. or business splits must generally be at market value.Corporate Income Tax rates. can be conducted but subject to the approval of the Director General of Tax (DGT). In the event of complications beyond the 8 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . specific DGT approval. under which assets are transferred at book value. Taxdriven arrangements are prohibited and therefore tax losses from the combining companies may not be passed to the surviving company. the company concerned must have made an effective declaration about registration for an IPO with the Capital Market and Financial Institution Supervisory Agency (BAPEPAM-LK). Subject to a similar. the merger or consolidation plan in question must pass a business-purpose test. In this case. Tax concessions Tax neutral-mergers Transfers of assets in business mergers. the same concession is also available for business splits which constitute part of an initial public offering (IPO) plan. Gains resulting from this kind of restructuring are assessable.
• Extension of tax loss carry-forwards for up to ten years. Machinery and equipment i. • Acceleration of fiscal depreciation deductions. Garment and textiles c. Electronics PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 9 . provided that the assets invested are not transferred out within six years. Food industries b. Industrial chemical materials e. • A reduction of the withholding tax rate on dividends paid to non-residents to 10%. Investment incentives The DGT. on behalf of the Minister of Finance (MoF) and based on the recommendation of the Investment Coordinating Board (BKPM) chairman. prorated at 5% for six years of the commercial production.Corporate Income Tax company’s control. The designated business areas include the following: a. Pharmaceutical industries f. Pulp and paper d. Iron and steel h. may provide the following tax concessions to PT companies following their investment in certain designated business areas or in certain designated regions: • A reduction in net income of up to 30% of the amount invested. Rubber and products made from rubber g. the period can be extended by the DGT for up to four years.
before DGT approval for the tax facilities can be sought. Land transportation vehicles Ship building and reparation Cement (in Papua. the tax facilities will also include those typically enjoyed by a KB company. k. together with the application of the investment approval. If the company has bonded zone (Kawasan Berikat/KB) status. l. n. Specific approval must be obtained from the DGT for these tax facilities. o. m. and Nusa Tenggara) Products and packaging made from plastic (outside Java) Geothermal exploitation Oil refining Mini natural gas refining Recommendation from the BKPM chairman must firstly be obtained. p.Corporate Income Tax j. 10 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . The same tax facilities can be granted by the DGT to companies conducting business in an Integrated Economic Development Zone (KAPET). • Exemption from import duty for four years on machinery and certain spare parts. for example: • Non-collection of VAT and sales tax on certain luxury goods transactions. • Postponement of import duty on capital goods and equipment and goods and materials for processing. Sulawesi. • Exemption from prepaid income tax (Article 22) on the importation of capital goods and other equipment directly related to production activities.
• These two conditions are maintained for at least six months (183 days) in a tax year. a 5% corporate tax cut was granted to public companies that satisfy the following conditions: • At least 40% of their paid-in shares are publicly owned. Gains resulting from revaluations of fixed assets Gains resulting from a DGT-approved revaluation of fixed assets are subject to final tax at a rate of 10%. Tax cut for public companies With effect from 1 January 2008. (See pages 46-47 for further discussion on the revaluation of fixed assets). If in a particular year either or both of the conditions are not met. • The public should consist of at least 300 individuals.Corporate Income Tax The designation of an area as a KAPET is set out in a specific presidential decree. Foreign loan-funded and foreign grant-funded government projects Government projects funded with foreign loans or foreign grants may be eligible for special tax treatment for the PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 11 . Currently there are approximately 25 areas designated as KAPETs. each holding less than five percent of the paid-in shares. the facility is not applicable for that year.
Corporate Income Tax income derived from that funding. Aside from the above conditions. This facility is not available for second-level contractors. The projects that qualify are typically set out in the state Project Table of Contents (DIP) or other similar document. the main contractors. • Non-collection of import income tax (Article 22). If a qualifying project is only partially funded by a foreign loan or a foreign grant. Main contractors. • Non-collection of VAT and sales tax on luxury goods. consultants and suppliers are required to issue appropriate tax invoices although the VAT is not collected. the main contractors. consultants and suppliers. In the event that the deliverables of a qualifying project are goods or services subject to VAT. 12 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . consultants and suppliers also enjoy the following tax facilities on the importation of goods and the use of foreign taxable services and/or foreign intangible goods for foreign grant-funded or foreign loan-funded government projects: • Exemption from import duty. consultants and suppliers for foreign grant-funded or loan-funded government projects may have their income tax liability borne by the government. the tax facilities are determined proportionate to the amount of the foreign loan or foreign grant.
and • Whether the company has prepared transfer pricing documentation. Transfer pricing documentation is frequently requested during tax audits because transfer pricing issues are subject to close scrutiny by the tax office.Corporate Income Tax Transfer pricing Transactions between related parties must be consistent with the arm’s length principle. If the arm’s length principle is not followed. Transfer pricing disputes may be resolved through the domestic objection and appeal process or. the government requires specific transfer pricing documentation to prove the arm’s length nature of relatedparty transactions. Under the General Tax Provisions and Procedures (KUP) Law. • The transfer pricing methods applied to those transactions and the rationale for selecting the methods. the DGT is authorised to recalculate the taxable income or deductible costs arising from such transactions applying the arm’s length principle. where the PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 13 . Detailed transfer pricing disclosures are required in the Corporate Income Tax Return for 2009 and later tax years. The disclosures required include: • The nature and value of transactions with related parties.
The tax law authorises the DGT to enter into advance pricing agreements (APAs) with taxpayers for relatedparty transactions. 14 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . the parties may request double tax relief under the Mutual Agreement Procedures (MAP) article of the relevant tax treaty. After this period. it is open to renegotiation.Corporate Income Tax dispute involves a transaction with a related party in a country that is one of indonesia’s tax treaty partners. The process may or may not involve cooperation with foreign tax authorities. there is no implementing regulation concerning APAs. Once agreed. As of the date of this tax book. an APA will typically be valid for a certain period.
000.000.Individual Income Tax Individual Income Tax Normal tax rates Most income earned by individual tax residents is subject to income tax at the following normal tax rates: Taxable Income On the first Rp.000 On the next Rp. 200.000.000. 50.500. The final tax rates for severance payments (if paid within 2 years) are as follows: PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 15 .000 On the next amount of over Rp.000 62. 250.000 30. there are changes in tax rates applicable to severance payments and lump-sum pension payments from a government-approved pension fund.000.000 Rate 5% 15% 25% 30% Tax Rp. 500.000 On the next Rp. old-age security saving payments from the state social security organiser (Jamsostek).000 30% of the relevant amount Concessional tax rates Starting from 16 November 2009.500. 2.
000 On the next amount of over Rp. 50. 500.000 On the next amount of over Rp. 400.000. old-age security saving payments from the state Employee Social Security Company (PT Jamsostek) if paid within 2 years are as follows: Taxable Income On the first Rp. 50.000 Rate Nil 5% Tax Rp. 50.000 60.000.000 Rate Nil 5% 15% 25% Tax Rp.000. Nil 5% of the relevant amount Payments for year 3 onwards. the usual non final tax rates (according to Article 17 Income Tax Law) will be applied.000.000. Nil 2.000 On the next Rp.000 On the second Rp. 50.500. 16 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia .000.000 25% of the relevant amount The final tax rates for lump-sum pension payments from a government-approved pension fund.000.Individual Income Tax Taxable Income On the first Rp.
Individual Income Tax Main Personal Relief Annual non-taxable income (PTKP) for resident individuals are as follows: Rp. max. Rp.000/month) Employee contribution to Jamsostek for old age security savings (2% of gross income) Pension maintenance expenses (5% of gross income. Rp 200.320. of 3) Occupational expenses (5% of gross income.000 Full amount 2. • He/she is present in Indonesia during a fiscal year and intends to reside in Indonesia.840.320. max. 500. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 17 .000 1.000/month) 15. • He/she is present in Indonesia for more than 183 days in any 12-month period.000.400.000 Tax residence An individual is regarded as a tax resident if he/she fulfils any of the following conditions: • He/she resides in Indonesia.000 1. Taxpayer Spouse Each dependant (max.000 6.
Employers are required to withhold Article 21/26 income tax on a monthly basis 18 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia .Individual Income Tax Note: The provisions of tax treaties may override these rules. Non-resident individuals are subject to withholding tax at a rate of 20% (Article 26. His wife and his dependant children’s income must be reported on the same tax return in his name. The tax return should state all the individual’s income. investment income. including compensation from employment. A family is generally regarded as a single tax reporting unit with a single tax identity number (NPWP) in the name of the head of the family (typically the husband). as well as providing a summary of the individual’s assets and liabilities. overseas income and other income. Tax payments A substantial part of individual income is collected through withholding by third parties. Registration and filing Resident individual taxpayers who receive or earn annual income exceeding the PTKP threshold must register with the DGT Office and file annual income tax returns (Form 1770). subject to treaty provisions) on Indonesia-sourced income (as specified on pages 30-31). they may or may not be taxed together with his income depending on whether their income is subject to Article 21 income tax. capital gains.
• Fees for services. A significant change occurred to fees for non-employee individuals and certain professionals. Interest earned on severance payments transferred to a manpower severance pay management board is subject to a 20% final tax if the board is a bank. among others: • Pension payments made by governmentapproved pension funds. accountants. notaries. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 19 . architects. the withholding tax is 20% of the gross amount (and may be set at a lower rate under a tax treaty). doctors. who are required to calculate the tax withheld based on 50% of the gross income at the prevailing rates. • Severance payments. the amount of tax withheld should be based on the normal tax rates (as set out above). If an employee is a resident taxpayer. Typically the amount of tax withheld from this income ( Article 21 Income Tax) is based on normal tax rates. or to a 15% withholding tax under Article 23 if the board is not a bank.Individual Income Tax from the salaries and other compensation payable to their employees. actuaries and appraisers. Various other payments to individuals also call for withholding tax obligations from the payers. • Old-age security saving payments from Jamsostek. These include. • Prizes/awards. If he/she is a non-resident taxpayer. such as lawyers.
The tax is due at the time of departure to a foreign country at the following amounts: Mode of trip By air By sea By land Exit tax (Rp) 2. home leave and reimbursement of an employee’s Indonesian tax liability 20 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . housing. Benefits-in-kind BIKs..Individual Income Tax Exit tax Individual resident taxpayers who have a tax ID number (NPWP) are exempt from exit tax. i.000. Exit tax will continue to apply to resident individual taxpayers without an NPWP until the end of 2010. for example cars. Kartu Keluarga for Indonesians or SKSKP for foreigners. The exemption also applies to their spouses and dependants covered in the official family card.500. This should be done through his/her individual income tax return (Form 1770) filed with the DGT office for the same year in which the exit tax has been paid.e. education.000 - The exit tax paid by an individual may be claimed as a tax credit when he/she has obtained an NPWP.000 1.
• Final-taxed companies. deaths. The program is maintained by a designated state-owned company.e. pre1984 income tax laws). • Representative offices of offshore companies which do not constitute taxpayers. PT Jamsostek. Jamsostek-social security Indonesia does not have a comprehensive social security system. and calls for premium contributions for the following: PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 21 . (i. However. transportation costs to and from the place of work and accommodation for ship crews and the like. BIKs are taxable in the hands of the employee if they are provided by: • Mining companies and production sharing contractors which are subject to tax under the old tax laws. are typically not assessable in the hands of the employee. and the cost of providing BIKs in remote areas. This also applies to BIKs which are required for the execution of a job. for example protective clothing. and • Deemed-profit companies.Individual Income Tax provided by the employer. uniforms. there is a worker’s social security program (Jamsostek) which provides compensation in the event of working accidents. and old age (55 years) as well as sickness or hospitalization. however.
000 for a single employee Employers are held responsible for ascertaining that their employees are covered by Jamsostek. A company which provides better company health insurance to its employees can choose not to join the health care programme under Jamsostek.24-1.74% 0.3% 3.7% 3% Borne by employees 2% - *) Maximum Rp 60.000/month for a married employee and Rp 30. Expatriates need not be enrolled in Jamsostek if they can provide evidence that they are covered by social security programmes of the same type in their home country.Individual Income Tax Areas covered Working accident protection Death insurance Old age saving Health care* As a percentage of regular salaries/wages Borne by employers 0. 22 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . These must be paid to PT Jamsostek together with the contributions borne by the employers. Employees’ contributions are collected by the employer through payroll deductions.
510 3. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 23 . which vary by position. including BIKs.Individual Income Tax Deemed salaries Expatriate employees working for oil and gas drilling companies are deemed compensated at specified amounts.350 5.275 9.245 The deemed taxable income takes into account all compensation for their employment. resulting in the following deemed taxable income: US$ per month (gross before tax) General managers Managers Supervisors and tool pushers Assistant tool pushers Other crew 11.830 4.
The same withholding tax is applicable to other payments to non-employee individuals (e.. • The sale of goods to the government requiring Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia (ii) 24 . fees payable to individual consultants or service providers). the payer is generally held responsible for withholding or collecting the tax. Resident individual taxpayers without an NPWP are subject to a surcharge of 20% in addition to the standard withholding tax. Article 22 income tax Article 22 income tax is typically applicable to the following: • The import of goods.g. (i) Article 21 income tax Employers are required to withhold Article 21 income tax from the salaries payable to their employees and pay the tax to the State Treasury on their behalf.Withholding Taxes Withholding Taxes General Indonesian income tax is collected mainly through a system of withholding taxes. These withholding taxes are commonly referred to using the relevant article of the Income Tax (PPh) Law. See page 15 for the relevant tax rates. Where a particular income item is subject to withholding tax. as follows.
payment from the State Treasury, the State Budget General Directorate, or certain state-owned companies; The sale/purchasing of steel, automotives, cigarettes, cement, and paper products; and The sale/purchasing of very luxurious goods.
The tax rates for these are as follows:
Event 1. The import of goods – using an Importer Identification Number (API) 2. The import of goods – without an API Tax rate 2.5% Tax base Import value, i.e., CIF value plus duties payable Import value, i.e., CIF value plus duties payable Selling prices
3. The sale of goods to the government requiring payment from the State Treasury and certain state-owned companies 4. The purchasing of steel products 5. The purchasing of automotive products
Selling prices Selling prices
Indonesian Pocket Tax Book 2010
6. The purchasing of paper products 7. The purchasing of cement 8. The purchasing of luxury goods
0.10% 0.25% 5%
Selling prices Selling prices Selling prices
The tax does not apply, either automatically or given an Exemption Certificate issued by the DGT, on the following types of imports: • Goods exempted from import duties and VAT; • Goods that have been temporarily imported (i.e., goods for re-export); • Goods for re-importing (i.e., to be repaired or tested for subsequent re-exporting). In no. (3) the tax collector (State Treasury, state-owned company, etc.) must withhold Article 22 income tax from the amount payable to a particular supplier (vendor). In the other events, the importer or the buyer of the designated goods must pay Article 22 income tax in addition to the amounts payable for the goods imported or purchased. The state-owned companies under (3) include PT Telkom, Pertamina, Bulog, Bank Indonesia, PLN, PT Indosat, PT Garuda Indonesia, PT Krakatau Steel and state-owned banks. Vendors of goods under nos (4) – (8) can only collect Article 22 income from buyers if they have been appointed by the DGT to undertake this role, i.e., if there has been a specific DGT Appointment Decision. Article 22 income tax constitutes a prepayment of corporate/ individual income tax liabilities for nos (1) – (8). Tax exemption applies to certain categories of goods or to the importing/purchasing of goods for non-business purposes.
Taxpayers without an NPWP will be subject to a surcharge of 100% in addition to the standard tax rate.
26 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia
(iii) Article 4 (2) – final income tax Resident companies, PEs, representatives of foreign companies, organisations, and appointed individuals are required to withhold final tax from the following gross payments to resident taxpayers and PEs:
Description 1. Rental of land and/or buildings 2. Proceeds from transfers of land and building rights 3. Fees for construction work performance 4. Fees for construction work planning 5. Fees for construction work supervision 6. Interest on time or saving deposits and on Bank Indonesia Certificates (SBIs) other than that payable to banks operating in Indonesia and to governmentapproved pension funds 7. Interest on bonds other than that payable to banks operating in Indonesia and government-approved pension funds 8. Sale of shares on Indonesian stock exchanges Founder shareholders may opt to pay tax at 0.5% of the market price of their shares upon listing. If they do not opt for this, gains on subsequent sales are taxed under normal rules (under certain tax treaties, this tax may not be due)
Tax rate 10% 5% 2/3/4% 4/6% 4/6% 20%
Indonesian Pocket Tax Book 2010
2. including premiums. 3. 25% 2. 4. Article 23 income tax is due at a rate of 15% of the gross amounts on the following: 1. (iv) Article 23 income tax Certain types of income paid or payable to resident taxpayers are subject to Article 23 income tax at a rate of either 15% or 2% of the gross amounts: a. If the recipient is a non-resident taxpayer. Article 23 income tax is due at a rate of 2% of the gross amounts on the fees for the following: 1. Forward contract derivatives Notes: 1.5% If the recipient is a mutual fund registered with the Capital Market Supervisory Board (BAPEPAM). b. 2. Prizes and awards. Rentals of assets other than land and buildings 2. Technical services 28 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . Dividends (but see page 5 . the tax rate is 0% for 2009-2010. Royalties. 5% for 2011-2013 and 15% thereafter. Income from lottery prizes 10. discounts. Applicable to the “initial margin”. Interest. the tax rate is 20% or a lower rate in accordance with the relevant tax treaty.6 concerning profit distributions).Withholding Taxes 9. and loan guarantee fees.
Sound dubbing services 19. or telephone equipment) except for those rendered by licensed construction companies 22. Flight and airport support services 13. machinery. Intermediary/agency services 17. Labour supply/outsourcing services 16. Consulting services 5. Support services for oil and gas mining 11. Design services 9.Withholding Taxes 3. Custodianship and storage services except for those performed by stock exchanges. Drilling services for oil and gas mining except for those performed by a PE 10. Appraisal services 6. bookkeeping and attestation services 8. Mining services other than oil and gas support 12. KSEI. of electricity. Waste processing services 15. Installation services (for example. Actuary services 7. Film mixing services 20. Maintenance and improvement services (for example. Forest felling services 14. Accounting. Management services 4. machinery. Computer and software-related services 21. and KPEI 18. or telephone equipment) except for those rendered by licensed construction companies PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 29 . for electricity.
Pensions and any other periodic payments. Manufacturing services (Maklon) 24. Event organisation services 26. 4. 2. Swap premiums and other hedging transactions. work. and representatives of foreign companies are required to withhold tax at a rate of 20% from the following payments to nonresidents: a.Withholding Taxes 23. Royalties. After-tax profits of a branch or PE. 3. Prizes and awards. On gross amounts: 1. Dividends. 8. Fees for services. including premiums. Investigation and security services 25. rents and payments for the use of assets. 5. Interest. 7. Gains from debt write-offs. Cleaning services 30. discounts and guarantee fees. and activities. Catering services (v) Article 26 – Non-residents Resident taxpayers. Packaging services 27. organisations. 30 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . Provision of space and/or time in mass media. Pest eradication services 29. 6. 9. outdoor media and other media for the dissemination of information 28.
being a specified percentage of the gross amount: ENI Insurance premiums paid to nonresident insurance companies: by the insured by Indonesian insurance companies by Indonesian reinsurance companies Sale of non-listed Indonesian company shares by non-residents Sale by non-residents of a conduit company where this company serves as an intermediary for the holding of Indonesian company shares or a PE Effective tax rate 50% 10% 5% 25% 10% 2% 1% 5% 25% 5% Where the recipient is resident in a country which has a tax treaty with Indonesia. See pages 34-37 for withholding tax rates under tax treaties. On Estimated Net Income (ENI). PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 31 . the withholding tax rates may be reduced or exempted.Withholding Taxes b.
32 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . Without this document (in the form prescribed by the ITO). To claim the reduced rates. royalties. interest. only the beneficial owner is acknowledged as the party entitled to the tax treaty benefits. at a minimum. and branch profits received by residents of a country with which Indonesia has signed a tax treaty. to be the “beneficial owner” the following criteria should be satisfied: a. present its certificate of residence (CoR) to the DGT through the Indonesian party paying the income. Tax exemption on the service fees is typically granted only if the foreign party earning the income does not have a PE in Indonesia. dividends. that they are not receiving income as an agent or nominee. the foreign party must. and royalties. the party is not entitled to the tax benefit and tax is withheld at a rate of 20%. For individuals. Under a regulation issued by the DGT in November 2009.Tax Treaties Tax Treaties Indonesia’s tax treaties provide for tax benefits in the form of withholding tax exemptions for service fees and for reduced withholding tax rates on dividends. For interest.
the company does not use more than 50% of its total income to fullfil its obligations to other parties. Any other company which meets the following requirements: 1. royalty. d. the business activities are managed by the company’s own management which has sufficient authority to carry out transactions.Tax Treaties b. or other payments. A company whose shares are listed on the stock exchange and traded regularly. the establishment of the company in the tax treaty partner country and the way the transaction is structured/undertaken are not merely done to enjoy tax treaty benefits. 2. the company has employee(s). or f. that is not an agent or nominee. such as interest. An institution that is explicitly named in the tax treaty or one that has been agreed to by the Competent Authority in Indonesia and its treaty country partner. the company has activities or an active business. income derived from Indonesia is taxable in the recipient’s country. e. An offshore company (WPLN) which earns income through a custodian from share or bond transactions made on the Indonesian Stock Exchange (except interest and dividends). 4. The withholding tax rates applicable under tax treaties are summarised below: PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 33 . A bank. 5. 3. c.
5% 15% 15% 15% 10% 10% 5% 20% 10% 7% 10/0% 10% 15/0% 10/0% 10/0% 34 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . Czech Republic 11. Finland 14. Bangladesh 5.4 15% 15% 15% 15% 15% 15% 15% 15% 10% 15% 20% 15% 15% 15% 15% 10% 15% 15% 7% 15% 15% 10% 10% 10% 15% 15% 10% 10% 10% 10% 15% 10% 10% 10% 5% 15% 10% 7% 15/0% 10/0% 10/0% 10/0% 10/0% 15/0% 10/0% 10/0% 10/0% 12. Hong Kong 17.5/0% 10/0% 15/0% 10/0% 15/10/0% 15% 15/10% 10% 10% 10% 15% 10% 10% 10% 12. China 10. Iran 7 1 6 3. Canada 9. Australia 3. Brunei 7. Germany 16.Tax Treaties Dividends Notes Portfolio Substantial holdings Interest Royalties Branch Profit Tax 1. France 15. Algeria 2. Belgium 6. India 19. Austria 4. Bulgaria 8. Egypt 13. Denmark 12. Hungary 18.5% 15% 15% 15/10% 10% 15/10% 5% 15% 15% 12% 10% 15% 12% 10% 10% 10% 15% 15% 10% 12.
Philippines 36.5% 15% 10% 10% 10% 15% 15/10% 15% 15% 12% 10% 20% 10% 10% 10/0% 10% 12. Jordan 23. Netherlands 31. Italy 21. Japan 22. New Zealand 32.Tax Treaties Dividends Notes Portfolio Substantial holdings Interest Royalties Branch Profit Tax 20. Poland 37. Luxembourg 27. Pakistan 34. Norway 33. Portuguese 1 7 3 2 4 1 5 3 15% 15% 10% 10% 15% 10% 15% 15% 10% 10% 10% 15% 15% 15% 20% 10% 10% 10% 10% 10% 10% 10% 15% 10% 10% 10% 15% 15% 10% 15% 10/0% 10/0% 10/0% 10/0% 10/0% 5/0% 10/0% 15/0% 10/0% 10/0% 10/0% 10/0% 10/0% 15/0% 15/10/0% 15/10% 10% 10% 10% 15% 20% 12. Korea (North) 24. Kuwait 26. Papua New Guinea 35. Mexico 29.5% 10% 10% 10% 20% 15% 10% 20% 20% 15% 10% 15% 10% 10% 15/10/0% 15% 15% 15% 20% 10% 10% 10/0% 10/0% PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 35 . Mongolia 30. Korea (South) 25. Malaysia 28.
Sweden 49. Sudan 48. Singapore 43. Tunisia 54. Syria 51. Turkey 55.4 10% 15% 15% 10% 15% 10% 15% 15% 15% 10% 15% 15% 10% 10% 20% 12% 15% 15% 10% 12.5% 10% 12. Taiwan 52. Ukraine 1 3 3.Tax Treaties Dividends Notes Portfolio Substantial holdings Interest Royalties Branch Profit Tax 38. Seychelles 42. Thailand 53. Russia 41. Qatar 39. Spain 46. Sri Lanka 47. Romania 40.5% 12. Switzerland 50.5% 15% 10% 10% 10% 10% 10% 15% 10% 10% 10% 10% 10% 15% 12% 10% 10% 10% 12.5% 20% 15% 10% 20% 10% 20% 10% 15% 10% 10% 5% 20% 12% 10% 10% 15% 10% 15% 15/10% 10% 10% 15% 10% 15/10% 10% 20/15% 10% 15% 15% 10% 10% 36 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . Slovakia 44.5/0% 15/0% 10/0% 10/0% 10/0% 10/0% 10/0% 15/0% 15/0% 10/0% 10/0% 10% 10/0% 15% 12/0% 10/0% 10/0% 5% 15/12. South Africa 45.
5. 10% and 15% for Switzerland. 3. United States 59. Venezuela 61. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 37 . The Indonesian Tax Office (ITO) interprets this to mean that the tax rate under Indonesian Tax Law (20%) should apply. management and consulting services rendered in Indonesia are subject to withholding tax at rates of 5%. Subject to a protocol ratification. 4. The treaty is silent concerning the branch profit tax rate. Luxembourg and Pakistan respectively. VAT is reciprocally exempted from the income earned on the operation of ships or aircraft in international lanes. Vietnam 15% 10% 15% 15% 10% 10% 10% 15% 10/0% 10/0% 10/0% 15/0% 10/0% 10/0% 20/10% 15% 10% 10% 10% 10% Notes: 1. and the exchange of ratification documents. 7. Not yet effective. and royalties will be reduced to 10%.5%. subject to a protocol ratification and the exchange of ratification documents. 6. Uzbekistan 60. United Kingdom 10% 10% 5/0% 5% 5% 15% 10% 10/0% 15/10% 10% 58. Tax only applies if the profits are remitted.Tax Treaties Dividends Notes Portfolio Substantial holdings Interest Royalties Branch Profit Tax 56. Fees for technical. Labuan will be excluded from the territory of Malaysia for tax treaty purposes and the withholding tax on interest. 7. ratified but pending the exchange of ratification documents. 2. Germany. United Arab Emirates 57. Not yet effective. dividends.
Czech Republic 11. Bangladesh 5. Algeria 2. Germany 3 months 120 days 6 months 183 days 6 months 183 days 6 months 120 days 6 months 6 months 6 months 6 months 6 months 6 months 6 months 3 months 120 days 6 months 183 days 6 months 3 months 6 months 120 days 6 months 6 months 6 months 4 months 6 months --6 months 3 months 120 days 6 months 183 days 6 months 3 months 6 months 120 days 6 months 6 months 6 months 4 months 6 months 6 months --- 3 months 120 days 6 months 183 days 6 months 183 days 6 months 120 days 6 months 6 months 6 months 6 months 6 months 183 days --- 3 months 120 days 3 months 91 days 3 months 3 months 120 days 120 days 6 months 3 months 3 months 3 months 3 months 183 days --- 38 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . The following is a summary of these periods for the activities specified in the relevant tax treaties: Bldg. Australia 3. France 15. Bulgaria 8. Finland 14. Austria 4. China 10.Tax Treaties Permanent establishment time test Certain activities may give rise to the creation of a PE if they are conducted in Indonesia for more than a certain period of time. Egypt 13. Brunei 7. Belgium 6. Denmark 12. Site Construction Installation Assembly Supervisory Activities Other Services 1. Canada 9.
Netherlands 31. Jordan 23. India 19. Mexico 29.Tax Treaties Bldg. Luxembourg 27. Philippines 183 days 3 months 183 days 6 months 6 months 6 months 6 months 12 months 6 months 3 months 5 months 6 months 6 months 6 months 6 months 6 months 6 months 3 months 120 days 183 days 3 months 183 days 6 months 6 months 6 months 6 months 12 months 6 months 3 months 5 months 6 months 6 months 6 months 6 months 6 months 6 months 3 months 120 days 183 days 3 months 183 days 6 months 6 months --6 months 12 months 6 months 3 months 5 months 6 months 6 months 6 months 6 months 6 months 6 months 3 months 120 days 183 days 3 months 183 days 6 months 6 months 6 months 6 months 12 months 6 months 5 months --6 months 6 months 6 months 6 months 6 months 6 months 3 months 120 days 183 days 4 months 91 days 183 days 3 months --1 months 6 months 3 months 3 months --3 months 91 days 3 months 3 months 3 months 3 months --120 days 6 months 3 months 3 months 6 months 183 days PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 39 . Kuwait 26. Korea (South) 25. Mongolia 30. Malaysia 28. Pakistan 34. Italy 21. Korea (North) 24. Norway 33. Japan 22. Hungary 18. Iran 20. Papua New Guinea 35. New Zealand 32. Hong Kong 17. Site Construction Installation Assembly Supervisory Activities Other Services 16.
South Africa 45. Switzerland 50. Portuguese 38. Seychelles 42. Singapore 43. Site Construction Installation Assembly Supervisory Activities Other Services 36. Syria 51. Thailand 53. Slovakia 44. Romania 40.Tax Treaties Bldg. Sweden 49. Spain 46. Sudan 48. Turkey 55. Sri Lanka 47. Taiwan 52. Russia 41. Tunisia 54. Qatar 39. Poland 37. Ukraine 183 days 6 months 6 months 6 months 3 months 6 months 183 days 6 months 6 months 183 days 90 days 6 months 6 months 183 days 6 months 6 months 6 months 3 months 6 months 6 months 183 days 6 months 6 months 6 months 3 months 6 months 183 days 6 months 6 months 183 days 90 days 6 months 6 months 183 days 6 months 6 months 6 months 3 months 6 months 6 months 183 days 6 months 6 months 6 months 3 months 6 months 183 days 6 months 6 months 183 days 90 days 6 months 6 months 183 days 6 months 6 months 6 months 3 months 6 months 6 months 183 days 6 months 6 months 6 months 3 months 6 months --6 months 6 months 183 days 90 days 6 months 6 months 183 days 6 months 6 months 6 months 3 months 6 months 6 months 120 days 183 days 6 months 4 months --3 months 90 days 91 days 120 days 3 months 90 days 3 months 3 months --183 days 120 days 183 days 3 months 183 days 4 months 40 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia .
United Arab Emirates 57. Venezuela 61. United States 59.Tax Treaties Bldg. United Kingdom 58. Site Construction Installation Assembly Supervisory Activities Other Services 56. Uzbekistan 60. Vietnam 6 months 6 months 6 months 6 months 6 months 6 months 183 days 120 days 6 months 6 months 183 days 120 days 6 months 6 months 6 months 183 days 120 days 6 months 6 months 6 months 183 days 120 days 6 months 6 months 6 months 91 days 120 days 3 months --3 months PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 41 .
motor vehicles for public transportation. Category 2 – 25% (declining-balance) or 12. air conditioners. kitchen equipment. Category 1 – 50% (declining-balance) or 25% (straightline) on assets with a beneficial life of four years. special tools for specific industries/services. tools and accessories for deep water anchor equipment rentals. light machinery for the food and drink industries. forestry and fishery industries. printers. manual equipment for agriculture. equipment for the semi-conductor industry. scanners. 42 .5% (straight-line) on assets with a beneficial life of eight years. and base station controller for the cellular telecommunication services. furniture and equipment constructed of wood/rattan. Examples of assets in this category are computers.Capital Allowances Capital Allowances Depreciation Expenditure incurred in relation to assets with a beneficial life of more than one year are categorised and depreciated from the month of acquisition by the consistent use of either the straight-line or the declining-balance method. office equipment. Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia 2. motorcycles. as follows: 1. farming. Examples of assets in this category are furniture and equipment constructed of metal.
heavy vehicles for transportation. Category 4 – 10% (declining-balance) or 5% (straight-line) on assets with a beneficial life of twenty years. speed-boats. and communication. and other assets not included in the other categories. Example of assets in this category are heavy construction machinery. plantations. Building category – 5% (straight-line) on assets in the permanent building category with a useful life of 20 years. or 10% (straight-line) on assets in the Indonesian Pocket Tax Book 2010 43 4. fisheries. forestry activity. and machinery industries. equipment for construction.Capital Allowances cars.5% (declining-balance) or 6. and tools for cellular telecommunication services. locomotives. machines for the textile.25% (straight-line) on assets with a beneficial life of 16 years. The category also covers machinery for agriculture. and light machinery. 5. Examples of assets in this category are machines for general mining other than in the oil and gas sector. docks and vessels for transportation and communication. chemical. tools for deep water anchor equipment rentals. logging equipment. PricewaterhouseCoopers Indonesia . and for food and drink. trucks. 3. telecommunications equipment. and docks. timber. warehousing. buses. Category 3 – 12. heavy vessels. containers and the like. equipment for the semi-conductor industry. heavy equipment. railway coaches.
Capital Allowances non-permanent building category with a useful life of ten years. Separate lists of assets and depreciation rates for the oil and gas sector are also specified in a MoF regulation. 3. and 4 under Depreciation (above). should be amortised on the following bases. Special rules apply to assets used in certain areas for certain industries and KAPETs (see page 10-11). based on the useful life of the property: Category 1: 4 years Category 2: 8 years Category 3: 16 years Category 4: 20 years 44 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . 2. rights for use and BPHTB on land rights with a useful life of more than one year. Intangible property or costs. More comprehensive lists of the assets included in each category are set out in certain Minister of Finance (MoF) regulations. including the cost of extending building use rights. as appropriate: a. By using the straight-line or the declining-balance method at the rates specified in categories 1. Included in the cost of the buildings is the Duty on the Acquisition of Land and Building Rights (BPHTB) . rights for business use.
5% straight-line c. 25% straight-line Category 2:25% declining-balance.g. an intangible asset with a useful life of six years may fall under Category 1 or Category 2. while an intangible asset with a useful life of five years is under Category 1). The costs of incorporation and expansion of the capital of an enterprise are claimed in full in the year in which the expenditure is incurred or are amortised using either the declining-balance or straight-line method at the following rates: Category 1:50% declining-balance.25% straightline Category 4:10% declining-balance. Costs incurred for acquiring the right to oil and natural gas concessions with a beneficial life of longer than one year are amortised using the production-unit method. 6.Capital Allowances Membership of the category is determined on the basis of the nearest useful life (e. d.5% declining-balance. 12. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 45 ..5% straight-line Category 3:12. forest concessions. and other rights to exploit natural resources and natural products with a beneficial life of longer than one year are amortised using the production-unit method but may not exceed 20% per annum. Costs incurred in the acquisition of mining rights. b.
Capital gains are assessable whilst a capital loss is tax-deductible only if the asset concerned is used in the running of the business. the company concerned must determine that it has settled all of its outstanding tax liabilities.Capital Allowances e.. Revaluation of fixed assets Subject to DGT approval. and securing assessable income. i. These are subject 46 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . corporate taxpayers and PEs who maintain rupiah accounting may undertake a revaluation of their non-current tangible assets for tax purposes. Before requesting the DGT’s approval.e. Asset transfers Sales of a company’s assets (other than land and building) may result in capital gains or losses. The revaluation must be conducted on a market or fair value basis. The market values must be determined by a government-approved appraiser. except for land and buildings (these may be omitted). Each revaluation must include all business-related assets which are owned by the company and located in Indonesia. calculated as the difference between the sales proceeds and the tax writtendown value of the assets concerned. collecting. for obtaining. This may be carried out once every five years. Costs incurred before the commencement of commercial operations with a useful life of longer than one year are capitalised and amortised according to the rates set out in point b (above).
Land. Additional final income tax at a rate of 15% is imposed on the original revaluation gains if the revalued assets are sold or transferred before the end of this minimum retention period (this does not apply to: a. Subject to DGT approval. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 47 . Once approved. do not represent the fair or market values of the assets. and assets falling under categories 3 and 4 must be retained for at least 10 years after the revaluation date. taxpayers facing financial difficulties may pay this tax in instalments over 12 months. The excess of the fair market value over the old tax book value of the revalued assets is subject to final income tax at a rate of 10%. the depreciation applied to depreciable assets must be based on the new tax book values (approved values) on the basis of a full useful life (in other words. or business split. in DGT’s view. Transferred in the course of a tax-neutral business merger. consolidation.Capital Allowances to DGT adjustments if the values. Withdrawal of fixed assets of a company because of irreparable damage. buildings. Transfer of assets because of force major based on a Government decision/ policy or court decision. c. b. Fixed assets falling under categories 1 and 2 must be retained at least to the end of their useful life. as if the assets were new).
d. Export of taxable goods (tangible and intangible) by an enterprise. Export of taxable services by an enterprise. 48 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . c. Deliveries of a title to taxable goods according to an agreement.Value Added Tax Value Added Tax General The Value Added Tax (VAT) Law has been amended and the amendments are effective from 1 April 2010. Deliveries of taxable services in the Customs Area. f. Deliveries of taxable goods in the Customs Area by an enterprise. VAT is typically due on events involving the transfer of taxable goods or the provision of taxable services in the Indonesian Customs Area. The delivery of taxable goods is defined very broadly. Use or consumption of taxable intangible goods originating from outside the Customs Area in the Customs Area. b. Use or consumption of taxable services originating from outside the Customs Area in the Customs Area. it includes the following: a. Import of taxable goods. e. The taxable events are: a. g.
Transfers of taxable goods according to a leasing-withoption or a finance-lease agreement.g.. However.Value Added Tax b. Deliveries of taxable goods on consignment. subject to the DGT’s approval. Deliveries of taxable goods to an intermediary trader or an auction official. the tax base is the transaction value agreed between the parties concerned. Deliveries of taxable goods within a company (e. e. which were originally not for sale. centralises its VAT reporting. c. whereby the deliveries are deemed to take place directly from the taxable entrepreneur to the party in need of the taxable goods. d. Deliveries of taxable goods by a taxable entrepreneur in the framework of syariah-based financing. Tax rates and tax base The VAT rate is typically 10%. In most cases. h. Remaining taxable goods in the forms of inventories and/or assets. VAT on the export of taxable tangible and intangible goods as well as export of services is fixed at 0%. f. For certain events PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 49 . VAT is calculated by applying the VAT rate to a relevant tax base. at a company’s dissolution. Own-use and/or free gift of taxable goods. g. This may be increased or decreased to 15% or 5% according to a government regulation. or between the head office and its branches) unless the company. between branches.
all goods and services. Cost of sales for own-use or free gifts and internal deliveries of taxable goods (e. i. and sales of (non-inventory) assets originally not for sale. The legal negative list sets out which goods and services are categorised as non-taxable. f. exclusive of the acquisition price of land. d. Auction price for deliveries of taxable goods through an auction officer. for the self-construction of a building. 5% of the total service charges. unless otherwise stated. Agreed price for deliveries of tax able goods through an intermediary trader. Average result per film for movies h. 10% of the actual billing for package shipment services. or from the head office to branches). e.. Average selling price for video and audio recording products. between branches. other criteria must be used as the tax base. b. Retail selling prices for deliveries or imports of tobacco products. and discounts for factoring services. including: a.g. provisions. c. 4% of total costs incurred or paid.Value Added Tax or situations. j. as follows: 50 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . By law. constitute taxable goods or taxable services. g. tour and tourism agency services. remaining inventories of taxable goods at a company’s dissolution. Market value for transactions between related parties.
natural gas. mail services using stamps. j. money. d.Value Added Tax Non-taxable Goods a. including food and drink delivered by caterers. coal (before processing into coal briquettes). financial services. social services. geothermal energy. educational services. mining or drilling products extracted directly from their sources. gold bars and securities. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 51 . for example rice. Non-taxable Services a. food and drink served in hotels. for example crude oil. basic commodities. corn. copper ore. salt. religious services. b. public transportation on land and water and international air transport. manpower services. e. k. broadcasting services which are not used for advertising. g. sand and gravel. medical health services. sago and soy beans. insurance services. h. gold ore. f. either consumed in the vicinity or taken away. for example orphanages and funeral services. art and entertainment services i. c. b. iron ore. d. c. tin ore. restaurants and the like. silver ore and bauxite ore.
a company may centralise its VAT reporting and so may exclude internal deliveries of taxable goods from the scope of VAT by submitting a written notification to the DGT. KPP Go Public. public services provided by the government. A vendor of taxable goods or a taxable service must typically charge VAT to the buyer. it is an output tax.Value Added Tax l. However. It is in this context that internal deliveries of taxable goods within a company are subject to VAT. n. from 1 April 2010. Companies registered with certain tax service offices (KPP PMA. VAT liabilities are typically settled by using an input-output mechanism. VAT is usually to be accounted for on a decentralisation basis. and MTO tax offices) are required to centralise their VAT reporting. From the vendor’s perspective. a company carrying out business activities through a number of business units (branches) in the working areas of different district tax service offices (KPP) must register each unit with the relevant KPP. As a result. m. The buyer has to pay the 52 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . parking area services VAT reporting Companies and individuals designated as taxable enterprises (Pengusaha Kena Pajak/PKP) are required to report their business activities and settle the VAT liabilities on these every month. LTO. hotel services. KPP Badora.
the input tax can be credited against the buyer’s own output tax. the input VAT (import VAT and self-assessed VAT) is claimable as a tax credit. Because the non-resident vendor or service provider cannot charge VAT (in other words. the Indonesian buyer/ importer has to pay the VAT for and on behalf of the non-resident vendor or service provider. Similarly. the vendor can also offset the output tax against input tax on the acquisition of taxable goods or taxable services. To the extent that goods/ services imported or procured are necessary for running the importer/service recipient’s business. cannot issue tax invoices) to the Indonesian buyer/importer. however.Value Added Tax VAT to the vendor. the taxpayer may ask for a monthly refund or carry over the overpaid VAT to the following months. the taxpayer in question has to settle the difference by the 15th* of the month following. it is an input tax. *) From 1 April 2010 before the reporting date and the reporting deadline is the end of the following month. From the buyer’s perspective. If the accumulated output tax for a particular month exceeds the accumulated input tax for the same period. To the extent that the goods are necessary for running the buyer’s business. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 53 . If. the accumulated input tax for a particular month exceeds the accumulated output VAT. Import VAT on goods and self-assessed VAT on the consumption or use of foreign taxable services or intangible goods should be understood in the context of the standard input-output mechanism.
) Crediting input VAT VAT must be accounted for to the DGT every month. A tax invoice must contain the following minimum information: a. Input-output mechanism As the name implies. A company engaged in deliveries of taxable goods or services to a VAT Collector tends accordingly to be in an overpaid VAT position. The validity of particular tax invoices is key to successfully claiming the input tax as a tax credit. however. must be claimed as a tax credit against the output VAT for the same tax period. However. address and tax ID number of the taxpayer delivering the taxable goods or services. a VAT Collector is required to collect the VAT due from a taxable enterprise (vendor) on the delivery to it of taxable goods or services and to pass the VAT payment directly to the government. 54 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . (See page 55-56 concerning VAT refunds. The VAT Collector is currently either the State Treasury or PSC companies (including Pertamina).Value Added Tax A deviation from the standard mechanism. rather than to the vendor or the service provider. in principle. the claim can still be made within three months of the end of the particular tax period if the input tax has not yet been expensed or if a tax audit has not yet been started. Input tax for a particular tax period (month). the name. is in force for deliveries of taxable goods and services to VAT collectors.
the code. the application is considered to have been approved. the VAT that has been collected. address and tax ID number of the purchaser. the sales tax collected (if any) on luxury goods. d. the time of delivery of taxable goods or services. VAT refunds Refund applications can be made at the end of a book year. Failure to satisfy the minimum information requirement will mean that the input tax cannot be used as a tax credit. serial number and date of issue of the invoice. e. such other time as maybe stipulated by MoF decree. The DGT is required to make a decision on a VAT refund application. within 12 months of the receipt of a complete application. the time a payment is received if the payment is received prior to the delivery of taxable goods or services. the quantity. the sales price or compensation and any discounts. b. c. A tax invoice must be issued at: a. on the basis of a VAT audit. the name and signature of the authorised signatory to the invoice. If no decision has been made within 12 months. the time a term-payment is received in the case of delivery of a part of the work phase. the name. f. g. the type of goods or services. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 55 . d.Value Added Tax b. c.
The DGT every year designates. the company is eligible to apply for early VAT refunds. certain taxpayers as golden taxpayers. Any documents delivered after that period may be ignored by the DGT in the VAT refund calculation. that the taxpayer has received a higher VAT refund than it should have done. the absence of tax in arrears. companies in the pre-production stage and suppliers of goods or services for which VAT is not collected). such as the filing of tax returns on time. on the basis of the tax audit. A pre-audit refund can be based only on a verification of the VAT returns and must be granted within a month after the completed VAT refund application is received. Monthly refunds are possible for certain taxpayers (exporters of goods or services. suppliers to VAT collectors. A taxpayer classified as a golden taxpayer is entitled to obtain early (pre-audit) VAT refunds. The golden taxpayer designation is a status granted by the DGT to taxpayers who fulfil certain criteria. If it proves. It must notify the DGT in writing if it does not want to make use of the privilege. the excess amount is subject to an administrative penalty of 100%. on the basis of the criteria. 56 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . Once a taxpayer is granted this status. and the lack of any criminal involvement. The DGT may conduct a tax audit after the early VAT refund is granted.Value Added Tax Relevant supporting documents for a VAT refund must be delivered to the DGT within one month of the application date.
The traffic of goods between KB companies as well as between a KB company and its supporting contractors is also facilitated by means of the same tax facility. These facilities are covered by the following schemes: Bonded zones Bonded Zone ( Kawasan Berikat/KB) status is typically granted by MoF at the request of export-oriented manufacturing companies. • Importation of office equipment to be used only by the KB company concerned. the KB status brings about a non-collection of VAT and VAT exemption facilities in respect of: • Importation or domestic purchases of goods for further processing.Value Added Tax Tax facilities As stated in government regulations. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 57 . • Importation of plant equipment and machinery related directly to manufacturing activities to be used only within or by the KB company concerned. The aim is to minimise idle investments in input VAT and Luxury Sales Tax (LST) overpayments resulting from the existence of refunds pending approval for export activities. As a result. As a result. tax facilities are granted to certain taxpayers in the form of non-collection of VAT or VAT exemption. VAT and LST do not need to be collected for the following traffic of goods: • Shipments of products from a KB company to another KB company for further processing.
The lending of plant. and the reshipment of the same machinery or equipment to the KB company in a subcontract arrangement. 58 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . • 60% of the current-year production value for other goods. Apart from the above conditions. Import income tax (Article 22 income tax) is not collected on imports of office equipment. machinery or equipment by a KB company to another KB company or non-KB company within the Customs Area. and on goods for further processing. machinery and equipment related directly to manufacturing activities. as well reshipments of goods processed by the non-KB company to the KB company. To preserve its KB status. shipments of goods to a KB company from outside Indonesia Customs Area are granted postponement of import duty and excise (if any) to the extent that the goods are to be processed further. Such domestic sales are allowed only at the following maximum volumes: • 50% of the current-year production value for goods requiring no further processing and which can be used by end consumers. plant.Value Added Tax • • Shipments of goods and/or materials from a KB company to a non-KB company within the Customs Area in a subcontract arrangement. a company must observe the maximum volume at which products to non-KB companies in the domestic market may be shipped or sold.
the other portion of the current-year production must be either: • Exported. • Sent to a special import facility (KITE) for further processing. 75% of the current-year production value for KB companies engaged in the oil and gas. the domestic ship building. • Sent to other KB company. or. Special Import Facility Instead of obtaining a KB status from the MoF. this facility is applicable only for the importation of goods for further processing. It includes: • Postponement of import duty and excise. and the oleo chemical industries. Given these domestic sales volumes. a company must first obtain a Company Master Number (NIPER) from the DGCE. for assembly. • Destroyed under the supervision of the Director General of Customs and Excise (DGCE). To acquire the KITE status.Value Added Tax • • 75% of the current-year production value for goods supplied to mining and oil and gas companies. The actual facility may then be requested every year. The request must be supported by at least an Import and Export Plan for the Next 12 Months and an Export Realisation Report for the Last 12 Months. The DGCE must make a decision on the facility request within 14 days. or for affixing to other goods for further exportation. an exportoriented company may request a KITE from the DGCE. Unlike the KB facility. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 59 . • Non-collection of VAT and LST.
the company must provide the DGCE with a bank guarantee or a promissory note worth as much as the duties and excise to be exempted and the VAT and LST which will not be collected. Currently.Value Added Tax If the request is approved. Failure to fulfil this requirement may lead the DGCE and the DGT to recollect the duties and excise duty on the goods that were previously exempted and the VAT and LST that was not collected. Capital goods in the form of machinery and plant and 60 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . The deliveries and/or import of taxable goods designated as strategic goods are exempt from VAT. The company is typically required to realise its export or sales to KB companies within 12 months of the KITE approval. the following goods are included: a. (See pages 12-13). LST and import income tax are not to be collected on the importation of goods and the use of foreign taxable services and/or foreign intangible goods relating to foreigngrant or foreign-loan-funded government projects by the main contractors. Foreign-Grant or Foreign-Loan-Funded Governmental Projects VAT. before the release of the imported goods. consultants and suppliers. together with applicable administrative sanctions (such as a penalty at 100% of the import duty due and interest at 2% per month for a maximum of 24 months on the underpaid VAT and LST). The designation of strategic goods is made through a government regulation.
Cattle. ammunition. polio vaccines for use in the National Immunisation Programme. f. forestry. including the capture and cultivation of fish. e. b. farm and animal husbandry products. equipment required for the manufacturing of taxable goods. Other VAT Exemption Schemes To support the achievement of certain national objectives. Seeds and seedlings for agricultural. Clean water distributed through pipes by drinking water companies. except household electricity exceeding 6. aircraft and spare parts for use by national commercial airline companies.600 watts. including hunting and trapping. and fishery products. plantation. ships and spare parts for use by national commercial shipping companies or national fishing companies. c. weapons. e. c. transportation vehicles and various other appliances for use by the armed forces and the state police. d. animal husbandry products. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 61 . and the raw materials for manufacturing these. Electricity. general education and religious books. d. plantation and forestry products.Value Added Tax b. poultry and fish feed. VAT is exempt on the import and/or deliveries of the following taxable goods or taxable services: a. Agricultural.
rental of low-cost houses. Bintan and Karimun (page 98). services received by national commercial shipping companies or national fishing companies. train maintenance and repair services received by PT Kereta Api Indonesia. g. h. k. l. services received by national commercial airline companies.Value Added Tax f. 62 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . seaport services and ship maintenance or docking services. Please refer to Section FTZ in Batam. including aircraft rental and maintenance services. basic flats and places of worship. VAT and LST in Batam Batam is now a Free Trade Zone (FTZ) of which most of the transactions to enter goods or services into Batam. the VAT and LST are not collected provided that the administrative requirements are fulfilled. services rendered for the construction of low-cost housing. including ship rental. basic flats and student accommodation. j. trains and spare parts for use by PT Kereta Api Indonesia. i. low-cost housing.
A particular item will only attract LST once. The importer or the manufacturer of the goods is held responsible for the settlement of the LST. To ascertain whether or not a particular item is subject to LST and to identify the LST rate. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 63 . including capacity. It should be noted that the inclusion of a particular item in the summary does not necessarily mean that the item will always be subject to LST. i. or price. Whether or not the particular item is subject to LST depends on other factors. size.e. A summary of the indicative LST rates is set out below. reference should be made to the Customs Book using the relevant harmonised system (HS) code. tax will be charged either on importation of the good or on delivery by the (resident) manufacturer to another party. With the amendment of the VAT & LST Law which will be effective on 1 April 2010. deliveries or imports of certain manufactured taxable goods may be subject to Luxury Sales Tax (LST). the LST Rate may be increased up to 200%.Luxury Sales Tax Luxury Sales Tax In addition to VAT. LST must be accounted for every month together with VAT..
and television broadcasting receivers. apartments. coolers. town houses and the like. Musical instruments. driers. row boats and canoes. condominiums.Luxury Sales Tax LST Rates (%) Group Household appliances. and electromagnetic devices Video recording or reproduction devices. articles and accessories. Luxury residences such as luxury houses. Ships or other water vehicles. Photographic and cinematographic devices and related accessories. dish washing machines. heaters. Air conditioners. except for state or public transportation needs. Perfumes. 10 20 30 40 50 75 PricewaterhouseCoopers Indonesia 64 Indonesian Pocket Tax Book 2010 . aerial reflectors Sport equipment. aerials.
Home and office furniture and fixtures. Shotguns and other arm cartridges. and/or pearl or a mixture thereof. kitchens. and other un-powered aircraft. makeup. Articles made of leather or artificial leather. dirigibles. offices. firearms and other arms. Glassware of lead crystal of the type used for tables. Footwear. or indoor decoration for similar purposes. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 65 .Luxury Sales Tax LST Rates (%) Group 10 20 30 40 50 75 Alcoholic beverages. Articles partly or wholly made of precious metal or metal coated with precious metal or a mixture thereof. Carpets made from silk or wool. except for the state purposes. Balloons.
Luxury Sales Tax LST Rates (%) Group Articles made of porcelain. other than curb stone. Luxury cruisers. or ceramic. china clay. 66 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . Aircraft other than those for the state or commercial air-transport purposes. 10 20 30 40 50 75 Cylinder Capacity (CC) LST Rate Motor vehicles Vehicle Type Wheel Driver System Motor System Engine Passenger vehicles. Carpets made of fine animal hair. except for the need of the state and public transport. capacity fewer than ten people. Articles partly or wholly made of stones.
capacity 10 to 15 people All types All types 10% PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 67 .Luxury Sales Tax Vehicle Type Wheel Driver System N/A Motor System Engine Spark ignition Cylinder Capacity (CC) <=1500 >1500 up to 3000 >3000 <=1500 >1500 up to 2500 >2500 up to 3000 >3000 <=1500 >1500 up to 2500 >2500 LST Rate 30% 40% 75% 10% 20% 40% 75% 30% 40% 75% • Sedan/ station wagon • Other than Sedan Station wagon 4X2 Spark ignition Compression ignition (Diesel/ semi diesel) Spark ignition 4X4 Compression ignition (Diesel/ semi diesel) All types <=1500 >1500 up to 3000 >3000 <=1500 >1500 up to 2500 >2500 30% 40% 75% 30% 40% 75% Passenger vehicles.
Luxury Sales Tax Vehicle Type Wheel Driver System All types Motor System Engine All types Cylinder Capacity (CC) All types LST Rate 20% Double-cabin vehicles Special –purpose vehicles • • • All types of vehicles for golf Vehicles used to travel on snow. beaches. and mountains Caravan-type trailers and semi-trailers for residential and camping purposes >250 up to 500 >500 50% 60% 75% 60% 75% Two-wheel motor vehicles 68 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia .
PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 69 .000 or Rp. or acceptances • are in the form of securities.Stamp Duty Stamp Duty Stamp duty is nominal. Deeds prepared by a designated land notary (Pejabat Pembuat Akta Tanah/PPAT). or condition of a civil nature.000 on certain documents. Notarial deeds and their copies. fact. 6. promissory notes. or declarations) which are prepared for the purpose of being used as evidence of act. b. in whatever name or form • are in the form of cheques. c. Examples of documents subject to stamp duty are as follows: a . d. Letters of agreement and other letters (such as authorisation letters. All documents bearing a sum of money which: • state the receipt of money • state the recording or deposit of money in a bank • contain notification of a bank balance • contain the acknowledgement of debt wholly or partly paid or compensated • are in the form of valuable documents such as drafts. 3. and payable as a fixed amount of either Rp. letters bestowing gifts.
000 when the value is between Rp. 250. 250. 1 million. and (e). For cheques. 6.000 rate is applicable to (a).Stamp Duty e. The Rp. 3. 6. 70 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . Values below Rp.000 are not subject to stamp duty. 3. (c). 1 million.000 and Rp. if they serve other aims or are used by other parties. the rate is Rp.000 when the money value stated in the document is more than Rp. (b). Documents to be used as instruments of evidence before a court: • ordinary letters or internal papers • papers originally exempt from stamp duty on the basis of their purpose of use. the rate is Rp. For (d).000 regardless of the monetary value stated. and deviate from their original purpose. and Rp.
NJKP is a predetermined proportion of the sale value of the tax object (NJOP) of a particular L&B. • Constituting protected forests. grazing land controlled by a village. national parks.5%. tourism forests. PBB rate is specified at 0. • Used by an agency or representative of an international organisation. health. unless exempted. 1 billion). and state land with no right imposed on it. as determined by the MoF. education and national culture. The negative list setting out land and buildings not subject to PBB includes those: • Used simply for public interest in the areas of religious and social affairs. based on the reciprocal treatment principle. The actual tax due on a particular object is calculated by applying the tax rate to the taxable sale value (NJKP) of the object. • Used by a diplomatic representative. NJKP is currently stipulated to be either 20% (for NJOP up to Rp. • Used as a cemetery. 1 billion) or 40% (for NJOP above Rp. and not for the purpose of making a profit.Land and Building Land and Building Land and building tax Land and Building tax (PBB) is a type of property tax chargeable on all land and/or buildings. natural reserve forests. ancient heritage site or similar. The government can increase PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 71 .
Using the completed SPOP and taking into account the NJOP-related information. presenting the official tax assessment made by the DGT. or breeding. In accordance with MoF guidelines. PBB is payable annually following an official assessment issued by the DGT. NJOPs should take into account the market value of the land & building in the region. As a result.1% or 0.Land and Building the NJKP rate by up to 100% of the NJOP.2% of the NJOP. the DGT issues a Tax Due Notification Letter (SPPT). the NJOP should also take into account the investment standard applicable on these. mining. The taxpayer in question is required to pay the tax due within six months of receipt of the SPPT. Where a piece of land & building is used for business purposes in the areas of plantation. forestry. 72 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . The form must be filled out by the taxpayer and returned to the DGT within 30 days. the effective PBB at present is either 0. NJOPs are to be determined by the DGT on behalf of the MoF and may be updated every one to three years depending on the economic development of the region in question. The assessment process is typically initiated by the DGT submitting a Tax Object Notification Form (SPOP) to the taxpayer in question.
000. and/or owns. for transfers of simple houses and apartments conducted by taxpayers engaged in a property development business. and/or takes benefits from a building can by law be regarded as the PBB taxpayer for that piece of land and/or building. the tax base is the higher of the transaction values stated in the relevant L&B right transfer deed or NJOP. However. or ignoring the SPOP can expose a taxpayer to a potential penalty of 25% of the PBB due. All the tax paid constitutes a final tax.Land and Building Incorrectly filling in a SPOP. and/or takes benefits therefrom. controls. An individual or an organisation that owns a right to a piece of land. Tax on land and building transfer A transfer of land & building (L&B) will cause income tax on the deemed gain on the transfer/ sale to be charged to the transferor (seller).000. The tax is set at 5% of the gross transfer value (tax base). However. which at present set at Rp. In general. the tax base is the amount officially stipulated by the government officer in question in the relevant document. In a PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 73 . the tax rate is 1%. Each taxpayer is entitled to a non-taxable NJOP. in a transfer to the government. late filing of the completed SPOP.12. The MoF is authorised by law to make adjustments to the non-taxable NJOP. This tax must be paid by the time the rights to L&B are transferred to the transferee.
BPHTB is based on the Tax Object Acquisition Value (NPOP). 74 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . Qualifying L&B rights transfers include sale-purchase and trade-in transactions. and prize deliveries. expansions. business mergers. the gross transfer value is the value stipulated in the relevant deed of auction. buyer designation in an auction. which in most cases is the higher of the market (transaction) value or the NJOP of the L&B rights concerned. inheritances. for which it may reach Rp. The tax due on a particular event is determined by applying the applicable duty rate (5%) to the relevant NPOP. The non-taxable threshold amount varies by region: the maximum is Rp. Acquisitions of L&B rights in certain nonbusiness transfers may be exempt from BPHTB. except in the case of an inheritance. grants. 60 million. 300 million. consolidations. minus an allowable non-taxable threshold. rights separations.Land and Building government-organised auction. contributions to a corporation. The government may change the nontaxable threshold via regulation. the execution of a court decision with full legal force. Duty on the acquisition of land and building rights A transfer of L&B rights will typically also give rise to Duty on the acquisition of land and building rights (BPHTB) liability for the party receiving or obtaining the rights. A notary is prohibited from signing a transfer of rights deed until the income tax has been fully paid.
at the request of a taxpayer. as well as for L&B rights obtained as compensation for the release of L&B rights for a public-interest governmental project. In a business merger. At the request of a taxpayer. the duty is due on the date of signing date of the Auction Report by the authorised officer. or expansion. 50%. the DGT may grant a BPHTB reduction of up to 50% for L&B rights transfers in business mergers or consolidations at book value. In certain non-business L&B rights transfers. A notary is prohibited from signing a deed transferring rights until the BPHTB has been paid. consolidation. the DGT may also grant. BPHTB at 25%. 75% or 100% of the duty due. In an auction. the duty is due on the date of signing of the merger. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 75 .Land and Building BPHTB is typically due on date that the relevant deed of L&B right transfer is signed before a public notary. consolidation or expansion act.
or both monthy and annually (depending upon the tax obligation in question. The tax payments and tax return filing for a particular tax must be undertaken monthly or annually.Tax Payments and Tax Return Filing Tax Payments and Tax Return Filing Tax liabilities for a particular period or year must typically be paid to the State Treasury through a designated taxpayment bank (bank persepsi) and then accounted for to the DGT office through the filing of the relevant tax returns. A summary of these tax obligations is as follows: Monthly tax obligations Type of tax Article 21/26 Income Tax Tax payment deadline The 10th of the following month The 10th of the following month The 15th of the following month The 10th of the following month Tax return filing deadline The 20th of the following month The 20th of the following month The 20th of the following month The 20th of the following month Article 23/26 Income Tax Article 25 Income Tax Article 22 Income Tax – Tax Collector 76 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia .
Meanwhile. for example a single day. Part of a month. VAT and LST tax payment deadlines are before the reporting date. the VAT and LST tax reporting deadlines are the end of the following month. Annual tax obligations Late payments of these taxes incur interest penalties at 2% per month. is considered a full month. Type of tax Tax payment deadline Tax return filing deadline The end of the fourth month after the book year end Corporate Income Tax The end of the fourth month after the book year end before filing the tax return PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 77 .Tax Payments and Tax Return Filing Type of tax Article 4(2) Income Tax Tax payment deadline The 10th of the following month The 15th of the following month The 15th of the following month Tax return filing deadline The 20th of the following month The 20th of the following month The 20th of the following month VAT and LST – Taxable Enterprise* VAT and LST – VAT Collector* * starting from 1 April 2010.
000.000 100. attaching a tentative tax calculation.000 100. This may be done by filing a written notification to the DGT before the deadline.000 For annual income tax returns.000 1.Tax Payments and Tax Return Filing Type of tax Individual Income Tax Tax payment deadline The end of the third month after the book year end before filing the tax return Tax return filing deadline The end of the third month after the book year end N/A Land and Building Tax Six months after the (PBB) receipt of a Tax Due Notification Letter (SPPT) from the DGT Office Late filing of a tax return or failure to file a tax return incurs an administrative penalties at the following amounts: Type of tax return VAT return Other monthly tax returns Individual income tax return Corporate income tax return Rupiah 500. The tax due according 78 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . taxpayers may extend the filing deadline by up to two months.
taxpayers registered with certain designated tax service offices (PMA. The warning letter will typically require the taxpayer to file the tax return within 30 days of the warning letter date. Except for corporate and individual income taxes. state-own company tax offices. LTO. In general. the main form of a tax return must be prepared in a conventional format (hard copy). Go Public. the DGT is encouraging the use of e-tax returns in which all the tax information is presented electronically using software PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 79 . an interest penalty of 2% per month will apply to the difference until the shortfall is paid. However. However. A company with business units (branches) spread over the country must accordingly account for the tax obligations to the district service tax offices with which the branches are registered. If the actual tax due based on the final tax calculation is higher than the tentative calculation. taxes are to be accounted for on a decentralised basis. Ignoring such a letter can prompt the DGT to issue an official tax assessment along with an administrative penalty of 50% of the assessed tax.Tax Payments and Tax Return Filing to the tentative calculation (if any) must be settled before submitting the extension notification. Failure to file a tax return by the relevant deadline may lead the DGT to issue a warning letter to the taxpayer in question. and MTO) are required to centralise their VAT reporting to those designated tax service offices.
e. i. For taxpayers registered with the designated tax service offices listed above. 80 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . E-tax returns can be filed to the DGT office either in the conventional manner. or by using an application service provider (e-filing). e-tax returns have been mandatory since 1 January 2005.Tax Payments and Tax Return Filing provided by the DGT. submitting the hard copy and the soft copy of the tax returns to the relevant tax service office..
the books must be stated in Rupiah. PEs. Companies governed by a Production Sharing Contract (PSC) or a Contract of Work (CoW) with the government may decide to apply USD accounting in English simply by notifying the DGT in writing. the application is automatically approved.Accounting for Tax Accounting for Tax Generally. composed in Indonesian. and stored in Indonesia. If no decision is made within that time. Subject to specific DGT approval. foreign-investment (PMA) companies. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 81 . This notification must be submitted to the DGT office no later than 3 (three) months before the beginning of the USD accounting year. A collective investment contract (KIK) is allowed to use USD accounting to the extent that it issues USDdenominated investment funds. By default. for tax purposes. a company’s books must be maintained in accordance with the prevailing accounting standards unless the tax law stipulates otherwise. The DGT is required to decide on the application within a month. and subsidiaries of foreign companies can maintain their books in USD and compose them in English. An application for DGT approval must be filed with the DGT office no later than three months before the beginning of the USD accounting year.
A company that has obtained approval to maintain USD accounting may return to Rupiah accounting subject to DGT approval. the assertions must be presented in USD side by side with Rupiah in the annual corporate income tax returns. In such a case. the company must submit a written notification to the DGT no later than three months after the beginning of the tax year in which the books are composed in English. Once approval is granted. 82 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . Irrespective of the currency and the language used. the company may not re-apply for USD accounting approval during the five years after the cancellation of the USD accounting. companies typically have to settle their tax liabilities in Rupiah (except for PSC companies) and file tax returns in Indonesian. For corporate income tax.Accounting for Tax A company may also compose its books in English but maintain them in Rupiah. The use of a foreign language other than English and a foreign currency other than USD in a company’s books is prohibited.
• The applicable tax credits.Tax Assessments and Tax Audits Tax Assessments and Tax Audits Tax assessments Background Indonesia uses a self-assessment system under which taxpayers are trusted to calculate. • The administrative penalty (interest or a surcharge). nil. or underpaid). and report their own taxes in accordance with prevailing tax laws and regulations. the DGT may issue tax assessment letters to a particular taxpayer if it finds that. pay. A tax assessment letter may also be issued by the DGT to a taxpayer who ignores a warning letter to file a tax return within a specified period. However. the taxpayer has not fully paid all tax liabilities. A tax assessment letter applies only to one specific tax for one particular tax period or year and typically takes into account the following factors: • The tax due. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 83 . • The resulting balance between the tax due and the tax credits (overpaid. based on a tax audit or on other information. Failure to maintain books in accordance with the prescribed standards is another condition that may lead the DGT to issue an official tax assessment.
Accordingly. there are three types of tax assessment letters: • Overpaid Tax Assessment Letter (SKPLB) if the tax due is less than the tax credit amount. If a SKPKB is issued. The penalty amounts are determined by the application of the relevant rate to the underpaid tax amounts. this may include one of the following administrative penalties: • Interest at 2% per month for a maximum of 24 months. • Underpaid Tax Assessment Letter (SKPKB) if the tax due exceeds the tax credit amount.Tax Assessments and Tax Audits Types of tax assessment letter The name of a tax assessment letter refers to the resulting balance between the tax due and the tax credits. • A 100% surcharge for withholding tax liability. Which penalties are applicable will depend on the type of wrongdoing the taxpayer has committed. • Nil Tax Assessment Letter (SKPN) if the tax due amount is equal to the tax credit amount. • A 50% surcharge for income tax liability. Statute of limitation Under the 2007 Tax Administration Law. the DGT can issue an underpaid tax assessment letter for the years up to 2007 only within ten years after the incurrence of a tax liability. 84 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . • A 100% surcharge for VAT and LST liabilities.
a SKPKB or SKPKBT can still be issued beyond the specified time limit to a taxpayer who. is found guilty of a taxation crime after the specified time limits. but no later than 2013. a taxpayer may avoid the surcharge if they voluntarily notify the DGT of the novum or the undisclosed information. For years from 2008 onwards. A SKPKB or a SKPKBT issued in such a situation will include an interest penalty totalling 48% of the underpaid tax. by virtue of a court verdict. additional tax assessment letters may still be issued within the specified time limits (five or ten years depending on the tax years) to the extent there is new data (novum) or information which was not disclosed (or not adequately disclosed) in the tax returns and/or during tax audits. Nevertheless. The issue of an Additional Underpaid Tax Assessment Letter (SKPKBT) calls for a 100% surcharge on the tax due as an administrative penalty.Tax Assessments and Tax Audits the end of a tax period (month) or the end of (part of) a tax year. However. The tax due reported in a tax return is considered certain if no tax assessment letter is issued within the specified time limit. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 85 . the time spans for the issuing of underpaid tax assessment letters is reduced to five years. Once a tax assessment letter for a particular tax of a particular month or year has been issued.
A refund request of any other tax will normally trigger a tax audit covering only one particular tax. • A tax return meeting certain (undisclosed) DGT criteria. • A tax return not filed within the prescribed time.Tax Assessments and Tax Audits Tax audits The tax audit of a company may cover only a particular tax or all taxes for a particular tax period (a tax month) or tax year. Due to the requirement for the DGT to decide on a refund request within 12 months. or at both. Other events may trigger a tax audit. these include: • A tax return in an overpayment position (not necessarily accompanied by a refund request). Conditions triggering a tax audit A tax refund request will always trigger a tax audit. a tax audit will typically begin from a few weeks to several months from the refund request date. The DGT will likely broaden the tax audit scope to include other taxes. One-month rule Taxpayers being audited are required to provide documents and information requested by the tax auditors within a month of the request date. This may include transfer pricing 86 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . A corporate tax refund request will normally trigger a complete tax audit covering all taxes. at the DGT offices. It may be conducted at the company’s premises. • An annual income tax return presenting/claiming a tax loss.
Tax Assessments and Tax Audits documentation if the taxpayers are engaged in relatedparty transactions. The tax auditors may change some of the suggested corrections in light of the taxpayer’s response to the tax audit findings notification and the closing conference discussion. the tax auditors will provide the taxpayer being audited with a written notification of the tax audit findings containing their proposed tax audit corrections. Where documents and information are not supplied within the one month period. Closing conference At the end of a tax audit. If there is a disagreement regarding the tax audit findings. The closing conference will serve as the last opportunity for the taxpayer to reassert its position with regard to the tax audit corrections and to present the relevant supporting documents. The taxpayer will have to state Agree or Disagree to each of the proposed corrections in the document. Failure to provide the documents or information within a month may prompt the DGT to determine the tax liabilities on a deemed profit basis. the taxpayer must respond to the notification in writing within seven working days and attend a closing conference (the final discussion) with the tax auditors. they cannot be used later by the taxpayer to dispute the amount of tax assessed. The document should also set out which PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 87 . The results of the final discussion are then summarised in a closing conference document.
A STP typically serves as a legal instrument to collect administrative tax sanctions not covered in a tax assessment letter. which must be based on the closing conference document. The signing of the closing conference document should take place no later than a month after the delivery of the audit findings notification letter to the taxpayer. the corrections agreed to in the closing conference document will constitute a basis for the minimum amount the taxpayer must pay of the tax assessment issued based on the document. For certain tax years (2008 onward). it may also be used by the DGT to collect tax due in a particular tax period (month) within the current year and the interest penalty on this.Tax Assessments and Tax Audits part of the taxpayer’s arguments are accepted by the tax auditors and accordingly lead to the cancellation or reduction of some particular suggested corrections. Products of a tax audits The legal products of a tax audit consist mainly of Tax Assessment Letters (SKP) and Tax Collection Letters (STP). the tax auditors and the taxpayer have to sign the closing conference document. 88 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . In some other situations. By the end of the closing conference.
a revision request. • Additional Underpaid Tax Assessment Letters. Any late payments trigger an interest penalty at 2% per month.Tax Collection Using Distress Warrant Tax Collection Using Distress Warrant Using a legal tax collection instrument. taxpayers are bound to pay only the minimum amount they have agreed to in the closing conference. an appeal. • Correction Decision Letters (which demand an additional payment from the taxpayer). The instruments include the following documents: • Tax Collection Letters. under the 2007 Tax Administration Law. • Underpaid Tax Assessment Letters. • Tax Court Decisions (which demand an additional payment from the taxpayer). Filing an objection. or a lawsuit is not an excuse for suspending the underpaid tax payment. provided that they file an objection or an appeal in respect to the PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 89 . However. • Tax Objection Decision Letters (which demand an additional payment from the taxpayer). the DGT may by law issue a Distress Warrant (Surat Paksa) to a taxpayer. The relevant taxpayer is required to pay the underpaid tax stated in a tax collection instrument within a month of the instrument date.
90 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . Publish an auction announcement with respect to the confiscated assets if the underpaid tax is not settled within 14 days of the issuing of the Confiscation Order. If the underpaid tax is not paid within the time allowed. Issue a Confiscation Order (Surat Sita) if the underpaid tax is not settled within 48 hours of the issuing of the Distress Warrant. c. the DGT may undertake the following steps as part of the execution of the Distress Warrant: a. The remaining part of the assessment not agreed during the closing conference will only be due after the DGT has made a decision on the objection or the tax court makes a ruling on the appeal that is not in the taxpayer’s favour. e. d. Issue a Warning Letter (Surat Teguran) if the underpaid tax is not settled within seven days of the due date.Tax Collection Using Distress Warrant particular tax assessment letter. Undertake a public auction if the underpaid tax is not settled within 14 days of the auction announcement. Issue a Distress Warrant (Surat Paksa) if the underpaid tax is not settled within 21 days of the issuing of the Warning Letter. b.
A discussion of the ways available to resolve such tax disputes follows. A SKPKB. and a STP constitute legal tax collection instruments on the basis of which the DGT may issue a Distress Warrant if the taxpayer fails to settle the underpaid tax on time. Objections and appeals A taxpayer who does not agree with a tax assessment letter can submit an Objection (Keberatan) to the DGT office within three months of the date of issue of the assessment letter. The way the DGT executes the Distress Warrant may give rise to another tax dispute between the parties. The Objection must state what the taxpayer has calculated as the tax due and set out the reasons for his or her disagreement with the DGT tax assessment. an SKPKBT. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 91 . A tax dispute may also arise between two taxpayers if one taxpayer has withheld too much tax from the income payable to the other taxpayer.Tax Dispute and Resolution Tax Dispute and Resolution A tax dispute between a taxpayer and the DGT will typically arise following the issuing of a tax assessment letter (SKP) by the DGT which the taxpayer does not agree with.
If no decision is issued by the DGT within 12 months. The unpaid portion of the assessment penalties will subsequently apply if the taxpayer’s objection is rejected or if a subsequent tax appeal to the Tax Court is unsuccesful. any underpayment is subject to a surcharge of 50%. An Objection may also be filed by a taxpayer with the DGT office with respect to tax withheld by a third party. the objection is automatically deemed approved by the DGT. If the objection is rejected by the DGT. The DGT has to issue a decision on the tax Objection within 12 months of the filing date of the Objection. as far as an underpaid tax assessment is concerned. The penalties are outlined below.Tax Dispute and Resolution In accordance with the 2007 tax administration law. the underpaid tax and the surcharge are not payable if the taxpayer files an appeal with the tax court in respect of the objection decision. The same time limits on filing the Objection and for the DGT’s decision apply to this type of Objection. However. the taxpayer must pay at least the amount agreed during the closing conference before filing the Objection. To the extent that the DGT Objection Decision calls for a 92 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . A taxpayer who does not accept the DGT Objection decision can file an Appeal (Banding) with the Tax Court within three months of the receipt of the DGT Objection.
a STP. • Decision Letters on the Reduction or Cancellation of Tax Assessment. or by virtue of its official position.Tax Dispute and Resolution payment of tax due. • Decision Letters on the Reduction or Cancellation of Administrative Sanctions. A Correction Request is an alternative available to a taxpayer. The derivatives include. This creates a mismatch and taxpayers are generally advised to pay the 50% amount to ensure the Tax Court accepts the case. the taxpayer is only required to pay an amount agreed in the tax audit closing conference. according to the tax court law. As set out in the 2007 tax administration law. following a taxpayer request. Any underpaid tax resulting from the tax court decision is subject to a surcharge of 100%. allowing the resolution of a dispute with the DGT concerning a particular tax assessment letter. • Decision Letters on an Early Refund of Overpaid Tax. may correct or cancel a tax assessment letter. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 93 . The Tax Court will typically have to decide on an Appeal within 12 months. or their derivatives issued on the basis of those letters. at least 50% of the tax due must be settled before filing the Appeal. This avenue can also be used for other tax disputes arising from virtually any other DGT decision. among others: • Objection Decision Letters. Another avenue for tax dispute resolution The DGT.
would have led to a different Decision. The Tax Court must decide on an appeal within six months. or false evidence on the part of the opposing party. In this case. A piece of important written evidence is found which. 94 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . However. Judicial Review Request to the Supreme Court A Tax Court Decision is considered to be a final decision with full legal force. Taxpayers who do not (fully) accept the DGT Decision on a Correction Request can file a lawsuit with the Tax Court (Gugatan) within 30 days of the receipt of the DGT decision.Tax Dispute and Resolution The DGT must issue a decision on a Correction Request within six months of the date of filing. The Decision has been based on a perjury. 2. the lawsuit must be filed no later than 14 days after the execution date. the parties involved in a tax dispute may file a Judicial Review Request (Peninjauan Kembali/PK) for a Tax Court Decision with the Supreme Court. a deception. the Correction Request is automatically deemed to have been approved by the DGT. If no decision is issued by the DGT within six months. This can be done only if any of the following conditions prevail: 1. A lawsuit against the DGT can also be filed with the Tax Court for the execution of Distress Warrant. had it been considered previously.
Something which was not demanded was granted. The Decision is clearly inconsistent with prevailing tax regulations. the time limit is three months after the court decision. 4. Some part of the claim has been ignored without reason. 5. For conditions 3. For conditions 1 and 2. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 95 . A Judicial Review Request must be filed with the Supreme Court within an allowable request time limit. the time limit is three months after the condition is identified.Tax Dispute and Resolution 3. 4 and 5.
beer. Good Passenger & commercial vehicles Rate (%) 0 to 50 15 0 to 15 5 to 25 30 to 150 0 to 25 0 to 10 As a commitment to liberalising trade. Higher duty rates remain to protect certain industries and goods regarded as sensitive for security or social and cultural reasons. Customs value is calculated on cost.Import Duty Import Duty Import duty is payable at rates from 0% . the Indonesian government is progressively lowering import duty rates on most products. Group Automobiles Automobile Parts Electronic Goods Footwear Ethyl Alcohol & Alcoholic Drinks Agricultural Products Other Ethyl alcohol. pharmaceutical products. rubber. 96 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia .150% on the customs value of imported goods. spirits Animal & vegetable products Chemicals. etc. insurance and freight level (CIF). wine.
Import Duty ASEAN duty rates Limited relief is given to Association of South East Asian Nations (ASEAN) countries on imports of goods that have at least 40% ASEAN content and have been directly shipped between such countries. ASEAN – Korea FTA (AKFTA) c. BKPM Masterlist facility The BKPM Masterlist facility provides duty exemption for eligible machinery and raw materials. Such facilities include the BKPM Masterlist. bonded warehouses. Free Trade Area (FTA) Agreement duty rates Indonesia has also implemented the following FTA duty rates with other Asian countries: a. This scheme is intended to increase inter-ASEAN trade by reducing duty rates on most goods to between 0% and 5%. Bintan and Karimun. KBs. ASEAN – China FTA (ACFTA) b. PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 97 . duty exemption and duty deferral facilities to foreign and domestic investors in order to promote the development of local and export industries. KITE facilities and Free Trade Zone (FTZ) in Batam. Indonesia – Japan Economic Partnership Agreement (IJEPA) Duty relief/exemption/deferral The Indonesian government offers duty relief.
Bonded warehouse The bonded warehouse facility allows for the payment of import duty and import taxes to be deferred until the goods have been delivered to the domestic market. VAT. provided at least 50% of the production value of the finished goods (or 40% in the case of semi-finished products) is exported. but the goods should support the manufacturing industry. Bintan and Karimun Goods entered into FTZ and goods delivered amongst companies inside Free Trade Zone (FTZ) are exempted from import duty. A KITE drawback allows for the recovery of import duty paid on imported goods that are incorporated into goods which are subsequently exported. the import taxes (ie. provided that the finished products are mostly exported.Import Duty Bonded zone A bonded zone (Kawasan Berikat /KB) is a facility for encouraging exports by exempting imported capital equipment and raw materials from import duty. FTZ in Batam. in addition. and excise. KITE facilities The KITE (Kemudahan Impor Tujuan Ekspor) exemption allows for goods to be imported without payment of import taxes. 98 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . LST and Income Tax Article 22) are not collected.
Some administrative requirements in FTZ: 1. The MITA priority lane allows the importer to clear the import goods without physical examination and documentation check.Import Duty Goods exit from FTZ to other Indonesia Customs area. the goods should relate to the business activities. 5. the liable import duty and import taxes should be paid. MITA (“Main Partners”) lanes There are two types of MITA lanes. Non priority lane also allows the importer to clear the import goods without physical examination and documentation check. except for those delivered to other Indonesia Customs area and Bonded Zone companies. Masterlist (type of goods and quantity) from the Management Board of FTZ. No requirement to be registered as a Taxable Entreprise (PKP). Customs procedures (including customs audit. Transactions of intangible goods and taxable services are exempted from VAT. Consumable goods for the FTZ residence should be entered by registered entrepreneurs. Business License from the Management Board of FTZ (Badan Pengusahaan) 2. 3. subject to some exceptions eg. 4. customs penalties) are applicable in FTZ. temporary PricewaterhouseCoopers Indonesia Indonesian Pocket Tax Book 2010 99 . namely MITA priority and MITA Non priority lanes. high risk importation.
and electronic goods. for the importation of garments. toys and footwear products. within two years. re-import. In addition. electronics. food and drinks (including tobacco). including alcoholic drinks.Import Duty import. Customs determines that the import duty has been underpaid. shoes. 100 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . and import of certain other specified products. Customs compliance environment and administrative penalties Customs may re-determine the classification or valuation of an importer’s goods within two years of the date of an import declaration. Import licenses Import restrictions apply to certain products. import duties borne facility. ammunition and hazardous waste. Administrative penalties of up to 1000% (one thousand percent) may be imposed where. A special Importer Identification Number (NPIK) needs to be obtained to import certain items including textile products. the importer should also have registered as Registered Importer (IT) with the Ministry of Trade.
Our Tax Department is available to advise and help you with all aspects of taxation and to ensure that you meet your commitments efficiently and promptly. If you have any queries, contact your usual consultant or any of the following tax professionals: General Inquiries International Tax Dispute Resolution Ray Headifen Ita Budhi Ray Headifen Ay-Tjhing Phan Engeline Siagian Ay-Tjhing Phan Anton Manik Mardianto Parluhutan Simbolon Suyanti Halim Jim McMillan Paul Raman Irene Atmawijaya Laksmi Djuwita Inge Jahja Adi Pratikto
Indonesian Pocket Tax Book 2010 101
International Assignments (IAS)
Hirotaro Kitamura Abdullah Azis Shunsuke Wariishi Hong Hyeon Kim Ali Mardi Ray Headifen Sindian Budi Siswojo Laksmi Djuwita Djumanto Ay-Tjhing Phan Sarah Stevens Michelle Mianova Mylynn Mu Jim McMillan Abdullah Azis Enna Budiman Ay-Tjhing Phan Engeline Siagian Ray Headifen Jim McMillan Ali Widodo Nazly Siregar Suyanti Halim Abdullah Azis Hanna Nggelan
Korean Desk Mergers & Acquisitions
Payroll outsourcing Transfer Pricing
Indirect Taxes (VAT & Customs)
Consumer and Industrial Products, Telecommunications and Communications
Indonesian Pocket Tax Book 2010
M. Ilyas Sindian Budi Siswojo Yessy Anggraini Yunita Wahadaniah Andrias Hendrik Edward Budianto Gerardus Mahendra Sujadi Lee Sylvia Saputera Energy (Hydrocarbons and Renewables), Utilities and Mining Tim Watson Ali Mardi Anthony J. Anderson Antonius Sanyojaya Triadi Mukti Tjen She Siung Gadis Nurhidayah Alexander Lukito Alfonso Dompas Raemon Utama Astrid Wohon Christine Shannon Shirly Suardi Shaun McCaffrey Simon McKenna Margie Margaret Hendra Lie Yuliana Kurniadjaja Runi Tusita Dongani Napitupulu
Financial Services and Insurance
Indonesian Pocket Tax Book 2010
Whilst every care has been taken in the preparation of this publication.The information in this publication is prepared for the sole use of partners. When specific problems occur in practice. it may be necessary to refer to laws and regulations and to obtain appropriate tax and other advice. no guarantee is given as to the correctness of the information it contains and no liability is accepted for any statement or opinion. 104 Indonesian Pocket Tax Book 2010 PricewaterhouseCoopers Indonesia . staff and selected clients. or for any error or omission.
pwc. Rasuna Said Kav. no guarantee is given as to the correctness of the information it contains and no liability is accepted for any statement or opinion. in it.com/id .6 Jakarta 12940 . H. or for any error or omission. While every care has been taken in its preparation. professional advice should be sought. X-7 No.A Summary of Indonesian Tax The information in this booklet sets out tax law and practice as of 19 March 2010. This booklet is intended as a general guide.R. In specific circumstances.INDONESIA P. Box 2473 JKP 10001 Telp: +62 21 5212901 Fax: +62 21 5290 5555/5290 5050 www. PT Prima Wahana Caraka Plaza 89 Jl.O.
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