Page 4 - Newsletter (New Super Tax Deduction for Corporate Taxpayers)

DDTC Newsletter Vol.01 | No.10 I July 2019 Page 4 of 6

New Super Tax Deduction for Corporate Taxpayers

of tariff and/or customs value, letter of customs through the placement of DHE SDA into special DHE SDA
determination, or re-stipulation letter of rate and/ escrow accounts at foreign exchange banks.
or customs value stating the identity of the owner of
goods i.e. name, address, and taxpayer identification The placement of DHE SDA into the abovementioned
number, constituting an integral part of the import DHE SDA escrow accounts is carried out no later than the
declaration for the imports of TG in the event of end of the third month after the month when the export
under-assessment of the value of Import VAT by the customs declaration is registered.
DGCE;
Should exporter fail to fulfill these obligations, there exist
14. tax payment slip for the payment of VAT on the
three types of sanctions that shall apply. First, exporters
utilization of intangible TG or TG from outside the
who do not place DHE SDA into a DHE SDA escrow
customs area into the customs area by attaching
account within the month of export customs registration
the invoice and details of the types and value of
are subject to a 0.5% fine.
intangible TG or TS as well as the name and address
of the intangible TG or TS supplier; Second, for the exporters who use DHE SDA in the DHE
15. tax payment slip for the payment of VAT on the SDA escrow account for the payment of export duties and
supply of TG through an auctioneer enclosed with other levies in exports, the loans, imports, and profits
a quotation of Acta (Risalah Lelang), constituting an from dividends, or other necessities from investments
integral part of the tax payment slip; and are subject to 0.25% fine.
16. tax payment slip for the payment of VAT on the
Third, for exporters who do not create any escrow
exports and/or supply of TG and/or TS from the
accounts or do not repatriate escrow accounts abroad
Free Trade Zone to Other Places in the Customs Area
to foreign exchange banks are subject to administrative
enclosed with:
sanctions in the form of postponing the provision of
• customs and excise declaration for the exports
customs services in the export sector.
of TG; or
• invoice or contract for the supply of intangible The MoF Regulation stipulates that the collected fines
TS and/or TG. shall be deposited to the state treasury as Non-Tax
State Revenue (Penerimaan Negara Bukan Pajak/PNBP)
originating from other state rights in accordance with
Exporters’ Failure to Repatriate the laws and regulations pertaining to the Non-Tax State
Foreign Exchange May Result in Fines Revenue.

The DGT Affirms the Issuance
Exporters who fail to repatriate foreign exchange from
export proceeds (devisa hasil ekspor/DHE) from natural Mechanism of SKJLN
resources (sumber daya alam/SDA) to escrow accounts
in Indonesia may be subject to fines. This is regulated in The government regulates the mechanism for issuing
the Minister of Finance Regulation (MoF Regulation) No. certificates of the utilization of taxable services from
98/PMK.04/2019 promulgated on 1 July 2019. outside the customs area within the customs area
(SKJLN). This mechanism is regulated in the Director
The MoF Regulation is the follow-up of the Government General of Taxes Regulation No. PER-12/PJ/2019.
Regulation Number 1 of 2019 concerning Foreign
Exchange from Export Proceeds from Natural Resources The authority explains that the underlying consideration
Business, Management, and/or Processing Activities for the issuance of the regulation is to provide legal
requiring exporters to repatriate foreign exchange into certainty in the imposition of Value Added Tax (Pajak
the country. Pertambahan Nilai/PPN) on temporary imports of which
the supply of goods is aimed at the utilization of taxable
MoF Regulation 98/2019 stipulates that all residents may
services (jasa kena pajak/TS) and ease of doing business.
freely own and use foreign exchange. However, the foreign
exchange from export proceeds from natural resources The regulation which has come into force as of 2019
(Devisa Hasil Ekspor/DHE SDA) must be included in the states that the imports of taxable goods (barang kena
Indonesian financial system. DHE SDA originates from pajak/TG) of which the supply of goods is intended for
the exports of mining, plantation, forestry, and fisheries. the utilization of taxable services are not subject to VAT
or Sales Tax on Luxury Goods (SLTGs). Prior to importing,
Based on this MoF Regulation, exporters are required to
taxpayers must possess SKJLN.
include DHE SDA into the Indonesian financial system