DGT Regulation No. PER-31/PJ/2015 dated August 5, 2015

THIRD AMENDMENT ON DGT REGULATION NO. PER-57/PJ/2010 CONCERNING GUIDANCE AND PROCEDURES FOR INCOME TAX ARTICLE 22 COLLECTION RELATING TO PAYMENT ON GOODS DELIVERY AND IMPORT ACTIVITY OR OTHER BUSINESS SECTORS

Article 1 is amended as follow:

Article 1

1)   Tax collectors as mentioned in Article 22 Law No. 7 Year 1983 as last amended by Law No. 36 Year 2008 are:

a.    Forex Bank and Directorate General of Customs and excise for:

1.    Imported goods and

2.    Export commodities of coal mining, metal and non metal mineral conducted by exporter, except for taxpayer who is bound by work contract and mining joint business agreement;

b.    State treasurer and proxy of budget user (KPA) as tax collector in central government, local government, government institute and institution and other government institutions relating to payment on purchases of goods;

c.    Expenditure treasurer relating to payment on purchases of goods by using cash inventory (UP) mechanism;

d.    KPA or ordonateur who get proxy by KPA, relating to payment third parties on purchases of goods by using direct payment (LS) mechanism;

e.    Particular corporations:

1.    State owned corporation, a corporation which capital wholly or partially owned by government through direct investment, which sources of funds come from separated state assets;

2.    State owned corporation which is Restructured by government after the effectiveness of this regulation, by transferring government interest to other state owned government; and

3.    Particular corporation which directly owned by state owned corporation such as PT Pupuk Sriwidjaja Palembang, PT Petrokimia Gresik, PT Pupuk Kujang, PT Pupuk Kalimantan Timur, PT Pupuk Iskandar Muda, PT Telekomunikasi Selular, PT Indonesia Power, PT Pembangkitan Jawa-Bali, PT Semen Padang, PT Semen Tonasa, PT Elnusa Tbk, PT Krakatau Wajatama, PT Rajawali Nusindo, PT Wijaya Karya Beton Tbk, PT Kimia Farma Apotek, PT Kimia Farma Trading & Distribution, PT Badak Natural Gas Liquefaction, PT Tambang Timah, PT Petikemas Surabaya, PT Indonesia Comnets Plus, PT Bank Syariah Mandiri, PT Bank BRI Syariah, and PT Bank BNI Syariah,

Relating to payment on purchases of goods and/or materials for its business activities;

f.     Corporation in cement, paper, steel, automotive and pharmacy business, on selling their products to domestic distributor;

g.    Trademark holding sole agent (ATPM), trademark holding agent (APM) and general importer of motor vehicles, on selling their products locally;

h.    Producer or importer of fuel oil, fuel gas and lubricants, on selling their products;

i.     Industry and exporter in forestry, plantation, agriculture, livestock and fishery business, on purchases of materials for their business or export;

j.     Industry or corporation who purchase of coal mining, metal and non metal mineral commodities from business entity or individual who hold mining business license;

k.    Corporation who produce gold bar on selling its products locally.

1 a) When corporation in paragraph 1 letter e point 3 change its company name, it is       still appointed as tax collector.

1 b)    When corporation in paragraph 1 letter e point 3 are not directly owned by state owned corporation, they are no longer appointed as tax collector.

2)   Steel corporation as mentioned in paragraph 1 letter e runs its business in upstream industry, including integrated upstream industry with intermediary and downstream industry.

3)   Mining business license as mentioned in paragraph 1 letter j is a license as mentioned in law and regulation in coal and mineral mining.

Between article 1 and 2, article 1A is inserted as follow:

Article 1A

1)   Rate for income tax article 22 collection are as follow:

a.    Collection by Directorate General of Customs and excise on:

1.    Import

a)    10% from import value on particular goods as mentioned in attachments I Minister of Finance Regulation No. 107/PMK.010/2015.

b)   7.5% from import value on particular goods as mentioned in attachment II Minister of Finance Regulation No. 107/PMK.010/2015.

c)    2.5% from import value on other goods than in point a) and b), which imported by using importer’s identification number, except for soybean, wheat and grain will be taxed 0.5% from import value.

d)   7.5% from import value on other goods than in point a) and b), which imported by not using importer’s identification number; and/or

e)    7.5% from auction price for non controlling goods;

2.    1.5% from export value as stated in export notification on coal, metal and non metal mineral mining commodities in accordance with list of harmonized system (HS) as mentioned in attachment III Minister of Finance Regulation No. 154/PMK.03/2010, conducted by exporter, except for taxpayer who is bound by work contract and mining joint business agreement.

b.    1.5% from purchase price excluding VAT on purchases of goods as mentioned in Article 1 paragraph 1 letter b, c, d and e.

c.    On selling of fuel oil, fuel gas and lubricants by producer or importer are as follow:

1.    Fuel oil:

a)    0.25% from selling price excluding VAT on selling to PERTAMINA public fuel station;

b)   0.3% from selling price excluding VAT on selling to non PERTAMINA public fuel station;

c)    0.3% from selling price excluding VAT on selling to other party other than letter a) and b);

2.    Fuel gas, 0.3% from selling price excluding VAT

3.    Lubricants, 0.3% from selling price excluding VAT

d.    On selling its products to domestic distributor for cement, paper, steel, automotive and pharmacy corporation:

1.    0.25% for cement products

2.    0.1% for paper products

3.    0.3% for steel products

4.    0.45% for automotives products

5.    0.3% for medicines

From VAT taxable basis.

a.    0.45% from VAT taxable basis on selling of motor vehicle products locally by Trademark Holding Sole Agent (ATPM), Trademark Holding Agent (APM) and general importer of motor vehicles;

e.    0.25% from purchase price excluding VAT on purchase of materials for industry or export purposes by forestry, plantation, agriculture, livestock and fishery business corporation.

f.     1.5% from purchase price excluding VAT on purchase of coal mining, metal and non metal mineral commodities from business entity or individual who hold mining business license.

g.    0.45% from selling price on selling of gold bar by its producer.

2)   Import value as mentioned in paragraph 1 letter a point 1 is value as basis for import duty calculation as cost insurance and freight (CIF) plus import duty and other charges in accordance with law and regulation in customs.

3)   Export value stated in export notification as mentioned in paragraph 1 letter a point 2 is free on board (FOB).

4)   For taxpayer who has no taxpayer registration number (NPWP) will be charged tax rate 100% higher than taxpayer who has NPWP.

5)   Paragraph 4 will valid for non final income tax article 22 collection.

6)   Rate for Income Tax article 22 collection on purchase of goods by state owned corporation as mentioned in article 1 paragraph 1 letter i will follow the provision in paragraph 1 letter f.

Article 3B is amended as follow:

Article 3B

1)   Exempted from Income Tax article 22 collection:

a.    Import of goods and/or delivery which under tax law and regulation is not payable to income tax.

b.    Imported goods which exempted from import duty and/or VAT:

1.    Goods belong to foreign country representative including its officials who work in Indonesia with reciprocal principle;

2.    Goods for international institution and its officials who work in Indonesia and not an Indonesia passport holder, which institution is recognized and registered in Minister of Finance Regulation;

3.    Gift or grant for religious, charity, social, cultural or disaster relief activity purposes;

4.    Goods for museum, zoo, natural conservation and similar places which open to public;

5.    Goods for scientific research and development purposes;

6.    Goods for the blinds and other disability purposes;

7.    Box or other container which contain corpse or ashes;

8.    Relocation goods;

9.    Private belonging of passenger, cabin crew, cross border and shipment goods up to certain amount allowed by customs law and regulation;

10. Imported goods by central government or local government for public purposes;

11. Arms, ammunition and military equipment including its spare parts for state defense and security;

12. Goods and materials used for producing state defense and security product;

13. Polio vaccine for national immunization week (PIN);

14. Science and technology, general knowledge, holy book, religious and other knowledge books;

15. Ship, river transportation ship, lake transportation ship and ferry, pilot boat, tug boat, fishing boat, barge and its spare parts also human and shipping security equipments imported and used by national trade shipping company or national fishing company, national harbor service provider or national river, lake and transportation operator according to its business activity;

16. Airplane and its spare parts also human and flight security equipments, repair and maintenance equipment imported and used by national trade airline and airplane spare parts and repair or maintenance equipment imported by a party which appointed by national airline for repairing its airplane;

17. Train and its spare parts also repair and maintenance equipment and infrastructure imported  and used by public train operator and/or infrastructure of public train provider and component and material imported by a party appointed by them for making a train, its spare parts, repair and maintenance equipment also train infrastructure;

18. National Border and air photo equipment and its spare parts used by Defense Ministry or national army for national defenses imported by Defense Ministry, national army or party appointed by them;

19. Goods for upstream oil and gas activity imported by work contract contractor and/or

20. Goods for geothermal business activity.

c.    Temporary import, when at the of import it is intended for re-export.

d.    Re-import, which cover exported goods and re-imported in the same quality or exported goods for repair, work and testing, which meet requirement set by directorate general of customs and excise.

e.    Payment by tax collector as mentioned in article 1 paragraph 1 letter b, c, d, e, i and j related to:

1.    Maximum amount for payment in letter b, c and d is IDR 2 millions and not a separated payment;

2.    Maximum amount for payment in letter e is IDR 10 millions and not a separated payment;

3.    Payment for:

a)    Purchase of fuel oil, fuel gas, lubricants, postage material and/or

b)   Water and electricity usage;

4.    Payment for purchase of petroleum, natural gas and/or its side product from upstream oil and gas activity in Indonesia.

a)    Exploration and exploitation contractor who work under work contract, or

b)   Head office of exploration and exploitation contractor who work under work contract.

5.    Payment for purchase of geothermal or electricity product from taxpayer who runs its business under work contract of geothermal resources exploitation;

6.    Payment on purchase of material for industry or export activity by company or exporter in forestry, plantation, agricultural, livestock, and fishery business as mentioned in article 1 paragraph 1 letter i with maximum amount of IDR 20 millions excluding VAT and not a separated payment;

7.    Purchase of coal, metal and non metal mineral from company or individual who hold mining business license as mentioned in article 1 paragraph 1 letter j, which income tax article 22 already collected by state owned company for their business activity.

f.     Imported gold bar which will be processed to jewelry for export purposes.

g.    Payment for purchase of goods related to utilizing of school operational aids (BOS).

h.    Domestic Sales of motor vehicles by ATPM, APM and general importer of motor vehicles, which has been taxed with Income Tax article 22 paragraph 1 letter c.

i.     Sales of gold bar by its producer as mentioned in article 1 paragraph 1 letter k to Bank of Indonesia.

2)   Exempted from income tax article 22 collection on imported goods as mentioned in paragraph 1 letter b will be valid when:

a.    Imported goods is subject to 0% of import duty, or

b.    Exempted from VAT.

3)   Exemption as mentioned in paragraph 1 letter a and f will be stated in statement of Income Tax article 22 dispensation issued by DGT.

4)   Exemption as mentioned in paragraph 1 letter d, e, g, h and i can be conducted without statement of dispensation (SKB).

5)   Provision as mentioned in paragraph 1 letter b and c and paragraph 2 will be conducted by directorate of customs and excise which procedures will be set by Director General of Customs and Excise and/or DGT.

Article 4 is amended as follow:

Article 4

1)   Income Tax article 22 collection on import will be deposited by:

a.    Importer or

b.    Directorate General of Customs and Excise

To state treasury through post office, forex bank or bank appointed by Minister of Finance.

1 a)    Income Tax article 22 collection on export of coal, metal and non metal mineral commodities will be conducted by deposit it by exporter to state treasury through post office, forex bank or bank appointed by Minister of Finance.

2)   Income Tax article 22 collection by tax collector as mentioned in article 1 paragraph 1 letter b, c and d, must be deposited by its collector to state treasury through post office, forex bank or bank appointed by Minister of Finance by using Tax Payment Form (SSP) on behalf of supplier and signed by tax collector.

3)   Income Tax article 22 collection by tax collector as mentioned in article 1 paragraph 1 letter e, f, g, h, i, j and k, must be deposited by its collector to state treasury through post office, forex bank or bank appointed by Minister of Finance by using Tax Payment Form (SSP).

4)   Directorate General of Customs and Excise will check tax payment form as mentioned in paragraph 1a) for export customs notification supporting documents and as basis for export services.

5)   Payment of Income Tax article 22 by exporter as mentioned in paragraph 1a) will be conducted by using SSP as follow:

a.    Filled by exporter identity

b.    Payment description column will be filled by export notification application number.

6)   Tax payment proof as mentioned in paragraph 4 is SSP with state revenue transaction number.

7)   Exporter as mentioned in paragaph 1a) must fill export notification extension form in accordance with customs regulation as follow:

a.    Type of document column will be filled by SSP

b.    Document number column will be filled by state revenue transaction number in SSP and

c.    Document date column will be filled by date of state revenue transaction number.

Article 5 is amended as follow:

Article 5

1)   Income Tax article 22 payment by parties as mentioned in article 1 paragraph 1 letter b, c and d will be conducted by using SSP form as evidence of tax collection.

2)   Tax collector as mentioned in article 1 paragraph 1 letter e, f, g, h, i, j and k must issue income tax article 22 collection proof in 3 copies:

a.    First copy for taxpayer

b.    Second copy as attachment of monthly report to tax office (attachment of income tax article 22 periodic tax return)

c.    Third copy as file for tax collector

3)   Exporter of coal, metal and non metal mineral as mentioned in paragaph 1 must submit 5th original copy of SSP with state revenue transaction number as supporting document to export customs notification.

This regulation will be effective on 8 August 2015.