Insights
VAT Changes under the HPP Law RE: “Final” VAT Regime
The HPP Law also enhanced the mechanism relevant to the “Final” VAT rate. In this regard, the MoF has now issued several implementing regulations on this “Final” VAT regime in accordance with Article 9A of the HPP Law. All of these implementing regulations were...
VAT Changes under the HPP Law RE: Non-VATable goods and services that are subject to Regional Taxes
MoF Regulation No.70/PMK-03/2022 (“PMK-70”) outlines those deliveries of food and beverages (“F&B”), catering services, art and entertainment services, hotel services, and parking services which are not subject to VAT. This treatment is because these goods and...
VAT Changes under the HPP Law RE: the use of “Other Value” for the VAT imposition base (Dasar Pengenaan Pajak/”DPP” Nilai Lain)
The use of “Other Value” for the VAT imposition base is stipulated under Article 8A of the VAT Law. Three of the new MoF Regulations cover this aspect for certain Liquefied Petroleum Gas (“LPG”) products, tobacco products, and subsidized fertilizer for the agriculture...
VAT Changes Under the HPP Law RE: Foreign e-Commerce
The VAT mechanism for foreign e-commerce supplies was introduced in Law No.2 of the Year 2020 and its implementing regulations MoF Regulation No.48/PMK.03/2020 (“PMK-48”) and DGT Regulation No. PER-12/PJ/2020 (“PER-12”). The MoF has now issued Regulation No....
Implementing Regulations issued on VAT Changes from HPP Law
On 30 March 2022, the Minister of Finance (MoF) issued a total of 14 derivative regulations to implement the Value-Added Tax (VAT) changes set out under the Harmonization of Tax Regulations (Harmonisasi Peraturan Perpajakan/HPP) Law (specifically Law / UU No. 7 the...
Upcoming Tax Policies for Crypto Transactions
The Directorate General of Taxes (DGT) will stipulate income tax (PPh) and value-added tax (VAT) for crypto-asset transactions. The tax imposed is final at 0.1%. “That’s right, PPh 0.1% and VAT 0.1%, all final,” said Director of Tax Regulation I DGT, Hestu Yoga...
New Regulation on Importation of Battery-Based Electric Motorized Vehicles
On 11th March 2022, the Ministry of Industry issued Regulation No. 7 the Year 2022 concerning Amendment to Regulation Of The Minister Of Industry Number 28 the Year 2020 Regarding Battery Electric Vehicle In Completely Knocked Down And Incompletely Knocked Down...
Provision of Electricity Tariff Discount for Electric Car Owners
PT Perusahaan Listrik Negara (Persero) (PLN) provides an electricity tariff discount of 30% for electric car owners who charge electric car batteries through a home charging facility. The discount is provided with the condition that the charging of the electric car...
New Customs Tariff Regulation
On 24th March 2022, the MoF issued Regulation No. 26/PMK.010/2022 concerning Stipulation of Goods Classification System and Import Duty Tariff Imposition on Imported Goods (“PMK-26/2022”). PMK-26/2022 revokes all previous MoF regulations concerning...