MoF Regulation No. 142/PMK.010/2015 dated July 24, 2015

FORTH AMENDMENT ON MINISTER OF FINANCE DECISION NO. 231/KMK.03/2001 CONCERNING TREATMENT FOR VAT AND SALES TAX ON LUXURY GOODS ON IMPORTED TAXABLE GOODS WHICH EXEMPTED FROM IMPORT DUTY

Several provisions in Minister of Finance Decision No. 231/KMK.03/2001 has been amended as follow:

Article 2 paragraph 3 is amended, paragraph 3a is inserted between paragraph 3 and 4, so article 2 will be become as follow:

Article 2

1.    Imported taxable goods which exempted from import duty are subject to VAT or VAT and sales tax on luxury goods in accordance with tax law and regulation.

2.    Exceptions to above mentioned paragraph are several imported taxable goods which exempted from VAT or VAT and sales tax on luxury goods.

3.    Such imported taxable goods are:

a.    Goods belong to foreign country representatives and its officials who work in Indonesia under reciprocal basis.

b.    Goods belong to international institution registered and recognized by Indonesia government and its officials who work in Indonesia and do not have Indonesian passport.

c.    Granted goods for religious activity, charity, social, cultural or disaster relief.

d.    Goods for museum, zoo and similar place which open for public, and for natural conservation.

e.    Goods for science research and development.

f.     Specific goods for blinds and other disable.

g.    Container or other packaging contain corpse or ashes.

h.    Relocation goods belong to Indonesia worker who work overseas, student study overseas, civil servant, Indonesia military or police officers who work overseas at least for 1 year, as long as such goods are not for sale and have recommendation from Indonesia representatives overseas.

i.     Private belonging to passenger, transportation crews, cross border and shipment goods up to certain amount of value in accordance with customs law.

j.     Imported goods by central government or local government for public purposes.

k.    Military equipment including its spare parts for state defense and security purposes.

l.     Temporary imported goods in accordance with rules and regulation.

m.  Goods for oil and gas and geothermal exploration and exploitation.

n.    Deleted

o.    Exported goods and reimported in same quantity and quality at the of export.

p.    Exported goods for repair, processing and testing and reimported to Indonesia.

q.    Imported medicine using state budget for public interest.

r.     Imported Human therapy material, blood classification and tissue type material by using state budget for public purposes.

3a.     Free tax facility in point o will valid when exported goods are reported as would be reimported.

4.    Free tax facility in point m will valid with following condition:

a.    No local production for such goods.

b.    Similar goods are produced in Indonesia but could not meet the specification required.

c.    Such goods are produced in Indonesia but quantity of production could not meet the demand.

5.    To obtain the facility in paragraph 4, taxpayer must apply to Director General of Customs and Excise along with application for exemption of import duty, attached with import goods plan (RIB) approved by director general oil and gas or director general new energy, renewal and conservation energy ministry of energy and mineral resources.

This regulation will be effective at promulgation date.