Tax regulations

Indonesia updates tax regulations on ID numbers, mobile credit and luxury sales tax


Unique identification number and / or tax identification number in public services

To support the implementation of public services to citizens in the realization of their fundamental rights and needs, on September 9, 2021, the President of the Republic of Indonesia issued and implemented Presidential Decree No. 83 of 2021 (Perpres 83) which governs “the inclusion and use of the Unique Identification Number (NIK) and / or Tax Identification Number (NPWP) in areas of public services”.

The inclusion of NIK and / or NPWP is done under the following conditions:

  • NIK as an identity marker for people who do not have NPWP;
  • The NPWP is used as an identity marker for foreign entities or people who do not have a NIK; and
  • NIK and NPWP are used as identity markers for people who already have NPWP.

Data of the recipient of the service which has been completed with the validation of NIK and / or NPWP may be shared and used for:

  • Prevention of criminal acts of corruption;
  • Prevention of money laundering;
  • for tax purposes;
  • Updating identity data in population data; and
  • Other purposes in accordance with the provisions of the law.

Value Added Tax and Income Tax on Cell Phones

On September 1, 2021, the Directorate General of Taxes (DGT) stipulated Regulation n ° PER-18 / PJ / 2021 (PER-18) relating to “Application instruction for the collection of VAT and tax on income / delivery in connection with the sale of prepaid cell phone credit and SIM card starter pack ”.

The main points of PER-18 are summarized as follows:

(1) Delivery of prepaid cell phone credit and starter pack SIM card by:

  • The entrepreneur providing telecommunications services (TSPE) to a distribution operator (DO) and / or a telecommunications consumer is subject to VAT which is collected by the TSPE;
  • DO level one to DO and / or telecommunications consumer is subject to VAT which is collected by DO level one;
  • DO level two to DO and / or telecommunications consumer is subject to VAT which is collected by DO level two;
  • The DO higher than the DO and / or the telecommunications consumer are subject to VAT which is collected by the level two DO.

(2) Second-level DOs prepaid cell phone credit and SIM starter pack sales are subject to 22 WHT 0.5%.

(3) The perception of Article 22 WHT does not apply to payment by DO and / or telecommunications consumers in the following cases:

  • With a maximum amount of Rp 2,000,000 ($ 141,841) excluding VAT and not a split payment of a transaction with a real value greater than Rp 2,000,000;
  • Bank taxpayer;
  • Already hold and file a copy of the income tax certificate based on PP-23/2018, and it is already verified by the information system of the DGT;
  • Already hold and file a copy of the Article 22 WHT waiver letter in accordance with the provisions;
  • Manages other businesses in addition to selling starter packs of SIM cards and prepaid cell phone credit, and has placed a deposit of up to Rp 60,000,000 excluding VAT during a fiscal period.

Incentive for the sales tax on luxury products on cars

On September 13, 2021, the Minister of Finance (MoF) issued a new regulation No. 120 / PMK.010 / 2021 (PMK-120) as the second amendment of PMK-31 regarding the incentive for sales tax on luxury goods (LST) on cars.

The strengths of the PMK-120 are:

  • LST which is payable on the delivery of motor vehicles in the form of sedans or station wagons and of motor vehicles for the transport of less than 10 persons including the driver, other than a sedan or station wagon with a cylinder capacity of up to 1 500 cc and already meeting specific criteria, will be fully supported by the government;
  • The LST which is payable on the delivery of motor vehicles for the transport of less than 10 people including the driver other than a sedan or a station wagon with a cylinder capacity of more than 1,500 cc to 2,500 cc and already meeting requirements specific criteria is supported at 50%. by the government;
  • LST which is payable on the delivery of motor vehicles for the transport of less than 10 people including the driver other than a sedan or a station wagon, with two-axle system (4×4) with a cylinder capacity of more than 1,500 cc at 2 500 cc and already meeting specific criteria will be supported up to 25% by the government.

Contractors who have already created the September period tax invoices for the delivery of motor vehicles should replace the tax invoices using the new rates above. On the other hand, any excess payment of VAT must be returned to customers.

This government-supported LST facility applies from September to December 2021.

I Dewa did Agung Nugraha

Partner, GNV Consulting

Erviyanti

Manager, GNV Consulting

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