Page 4 - Newsletter (‘3 in 1’ Tax Services through iKSWP Application)

DDTC Newsletter Vol.01 | No.01 I February 2019 Page 4 of 6

‘3 in 1’ Tax Services through iKSWP Application

The imposition of VAT, sales tax on luxury goods, and a) supply of marketplace platform services for
income tax for domestic e-commerce transactions merchant or marketplace platform service
through the marketplace platform as follows: providers;
General Obligations b) supply of TG and/or TS through the
marketplace platform; and/or
• Merchants or Service Providers
c) supply of TG and/or TS through any means
 Must inform their Tax Identification Number (TIN)
other than the marketplace platform.
to the marketplace platform service provider. In
 Must report the recapitulation of trade
the event that they do not have a registered TIN,
transactions carried out by merchants and/or
they are to:
marketplace platform service providers through
a) register to obtain a TIN through a marketplace
the marketplace platform provider to the DGT
platform provider or the DGT; or
when filing the Periodic VAT Return on the supply
b) notify their Identification Number (ID) to the of TG and/or TS.
marketplace platform provider.
Taxpayers Eligible to Use Book Value
 Who have not been confirmed as VAT Registered
Person/ Company, but have exceeded the in Business Spin-off
threshold of small-scale VAT entrepreneurs are
obliged to report their businesses to be confirmed
The government has expanded the categories of taxpayers
as VAT Registered Person/ Company.
eligible to carry out spin-off with book value. This new
 Who have not exceeded the threshold of small- provision is regulated in PMK No. 205/PMK.010/2018.
scale VAT entrepreneurs may opt to be confirmed
as VAT Registered Person. This regulation, which came into effect on December
 Must fulfill their income tax liability in accordance 31, 2018, has revised PMK No. 52/PMK.010/2017
with income tax statutory provisions. concerning Use of Book Value for the Transfer and
Acquisition of Assets in Business Merger, Consolidation,
• Marketplace Platform Provider
Spin-off, or Acquisition.
 Must have a TIN
 Must be confirmed as a VAT Registered Person
In the regulation, the government adds two groups of
for VAT purposes despite fulfilling the criteria of a
taxpayers who may carry out spin-off with book value.
small entrepreneur.
Overall, as per PMK 205/2018, 5 groups of taxpayers are
 Must fulfill their income tax liability in accordance allowed to use book value in business spin-off, namely:
with income tax statutory provisions.
 taxpayers who have not gone public and intend to
Obligations related to VAT and sales tax on luxury conduct an Initial Public Offering (IPO);
goods
 taxpayers who have gone public provided that the
• Merchants as VAT Registered Person/Company business entity resulting from the expansion conducts
an initial public offering (IPO);
 Must withhold, deposit, and report VAT or sales
tax on luxury goods payable;  taxpayers who separate sharia business units to
carry out business separation obligations based on
 Must prepare a Tax Invoice as proof of VAT
statutory provisions;
withholding on the supply of Taxable Goods (TG)
 domestic corporate taxpayers, provided that the
and/or Taxable Services (TS);
business entity resulting from the expansion receives
 Must report Periodic VAT Return for each Tax
capital from foreign investors amounting to a
Period through the marketplace platform provider.
minimum of Rp500 billion; and
• Online Platform Marketplace as VAT Registered
 state-owned enterprise taxpayers who receive
Person/ Company
additional Indonesian government capital, provided
 Receives payments from buyers for the supply that the expansion is conducted in relation to the
of TG and/or TS by a merchant or marketplace establishment of a state-owned enterprise’s parent
platform provider as VAT Registered Person in the company (holding).
amount of transaction value and VAT or VAT and
sales tax on luxury goods.

 Must withhold VAT and prepare a Tax Invoice in
the: