Page 3 - Newsletter (Tax Facilities for Certain Investments and New Provisions Related to Taxation Data, Excise and e-Trade)

DDTC Newsletter Vol.02 | No.10 I December 2019 Page 3 of 5

Tax Facilities for Certain Investments and New Provisions
Related to Taxation Data, Excise and e-Trade

Organization and Working Procedure within the location of the company thereof for some
of the Center for Taxation Data and entrepreneurs of the finished goods.
Document Processing The exemption applies to the entrepreneurs of the

finished goods who have stored ethyl alcohol and
The government has revised the regulation concerning produced the finished goods that are not dutiable goods
the organization and the working procedure of the in the same location. The finished goods, nonetheless,
center for taxation data and document processing must be in the form of biofuel and the storage must have
(pusat pengolahan data dan dokumen perpajakan/ obtained a permit/recommendation from agencies in
PPDDP). Changes in the organizational structure and charge of energy and mineral resources.
working procedure in several Echelon II units within the
Directorate General of Taxes (DGT) have resulted in such Moreover, entrepreneurs entitled to the exemption
revisions. must record the receipt and use of ethyl alcohol with
the excise exemption facilities. The entrepreneurs must
The revisions are contained in Minister of Finance of the also implement a computer-based inventory information
Republic of Indonesia Regulation No. 176/PMK.01/2019 system that can be monitored and accessed by Customs
concerning the Organization and Working Procedures of and Excise Officers in real-time and online.
the Center for Taxation Data and Document Processing
(PMK No. 176/2019). The government has made two Second, the government has abolished the provision of
changes in this regulation. minimum levels of ethyl alcohol or beverages containing
ethyl alcohol used for social purposes and entitled to
First, PPDDP serves as the technical implementing unit excise exemptions. The excise exemptions could be
in taxation data and document processing that reports provided for the lowest content of 85% of ethyl alcohol
to the Director General of Taxes. The technical-functional for social purposes and such a provision did not apply to
and administrative development of PPDDP is carried beverages.
out by the Directorate of Taxation Data and Information
(Direktorat Data dan Informasi Perpajakan/DDIP). In addition, the government has added a social purpose
for excise exemptions, i.e. beverages containing ethyl
This differs from the previous regulation, in which PPDDP alcohol for general worship purposes (the previous
reported to and was under the control of the Directorate regulation only provided excise exemptions for hospital
of Tax Information Technology (Direktorat Teknologi and natural disasters). To obtain these exemptions,
Informasi Perpajakan/DTIP). however, the entrepreneur must submit a request to the
Minister of Finance with a copy to the Director General
of Customs and Excise through the Head of Customs and
Second, the Head of PPDDP submits a report to the
Excise Office using the PMCK-3 document, a letter of
Director General of Taxes with a copy to the Director of
application for ethyl alcohol excise exemptions for social/
DIP. In contrast, the previous regulation required the
scientific research and development purposes.
Head of PPDDP to submit a report to the Director General
of Taxes with a copy to the Director of TIP.
Furthermore, the application for excise exemptions filed
Procedures for Excise Exemption by hospitals or institutions dealing with natural disasters
must include a breakdown of the amount and intended
use of ethyl alcohol for which excise exemptions are
The Government has revised the Minister of Finance requested. In addition, institutions dealing with natural
Regulation No. 172/PMK.04/2019 (MoF Reg. No. disasters must enclose recommendations from agencies
172/2019) concerning the Second Amendment to the dealing with natural disasters.
Minister of Finance Regulation No. 109/PMK.04/2010
(MoF Reg. No. 109/2010) concerning the Procedures for On the other hand, the application for excise exemptions
Excise Exemption. The regulation is revised to support filed by religious institutions must include a breakdown
businesses in the field of biofuels, which is a national of the number of beverages containing ethyl alcohol for
program established by the government. In addition, which the exemptions are requested and the intended
the revisions are required to accommodate the needs of use. The application must be attached thereof with a
dutiable goods for worship purposes. list of places of worship requiring the exemptions and
recommendations from agencies that manage religious
The government has made four changes in the regulation affairs.
promulgated on 25 November 2019. First, changing the
diction of finished goods exempted from excise into Third, based on the previous regulation, the head or
finished goods that are not dutiable goods. Subsequently, management of the hospital was to submit a monthly
the government has added a provision on the exemption report on the receipt and use of ethyl alcohol exempted
of ethyl alcohol storage obligation in a separate place from the excise to the Director General of Customs