Page 4 - 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 4 of 5

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

and Excise. Based on the new regulation, however, the A domestic business actor is an Indonesian citizen
reporting obligation is borne by the hospital. or business entity incorporated and domiciled in the
territory of the Republic of Indonesia conducting
Fourth, the CK-5 document – a notification of mutation business activities in PMSE. In contrast, a foreign business
of dutiable goods – was to be prepared pursuant to MoF actor is a foreign citizen or business entity incorporated
Reg. 109/2010 concerning the Procedures for Excise and domiciled outside the territory of the Republic of
Exemptions. The document must now be prepared based Indonesia conducting business activities in PMSE in the
on the provisions in the minister of finance regulation territory of the Republic of Indonesia.
concerning the storage, entry, issue and transport of
dutiable goods. Moreover, foreign business actors who actively offer and/
or conduct PMSEs to consumers in Indonesia and meet
Trade Through Electronic Systems certain criteria shall be considered to have a physical
presence and a permanent establishment in Indonesia.
The government has issued a new regulation concerning
The specified criteria may take the form of four aspects,
trade through electronic systems. The provisions are
namely the number of transactions, the value of
contained in Government Regulation No. 80 of 2019
transactions, the number of shipping packages, and/
concerning trade through electronic systems (Gov.
or the amount of traffic or access. Subsequently, foreign
Reg. No. 80/2019). The regulation is promulgated to
PPMSE that meets certain criteria must appoint a
materialize the provisions in Article 66 of Law Number 7
representative domiciled in the territory of the Republic
of 2014 concerning Trade (Law No. 7/2014).
of Indonesia. Such a representative may act as and on
behalf of the business actor in question.
The new regulation has come into force as of its
promulgation date, 20 November 2019. This regulation Additionally, statutory taxation provisions and
defines Trade Through Electronic Systems (Perdagangan
mechanisms apply to PMSE business activities. Further,
Melalui Sistem Elektronik/PMSE) as trade in which
all business actors conducting PMSE are required to
the transactions are carried out through a series of
fulfill general requirements under statutory provisions,
electronic devices and procedures. On the other hand,
among others, having a Taxpayer Identification Number
the Organizer of Trade through Electronic Systems
(Nomor Pokok Wajib Pajak/NPWP).
(Penyelenggara Perdagangan Melalui Sistem Elektronik/
PPMSE) is defined as business actors providing electronic
The regulation also emphasizes that any domestic
communication facilities used for trade transactions.
and/or foreign PPMSE is required to store PMSE data
and information related to financial transactions for a
The regulation contains 14 scopes of PMSE arrangements.
minimum of ten years after being obtained. The data and
The 14 scopes include parties conducting PMSE;
information referred to in the regulation are notebooks,
requirements in PMSE; implementation of PMSE;
and documents that form the basis, including the results of
business actors’ obligations; proof of PMSE transaction;
data processing from electronic bookkeeping as outlined
electronic advertising; and electronic offers, electronic
in Law No. 16 of 2009 concerning General Provisions and
receipts, and electronic confirmations. Further, there
Tax Procedures (Law No. 16/2009). In contrast, data and
exist electronic contracts; protection of personal data;
information that are not related to financial transactions
payment in PMSE; delivery of goods and services in PMSE;
must be stored for a minimum of five years.
exchange goods or services and cancellation of purchases
in PMSE, dispute resolution in PMSE; and guidance and
supervision.
Furthermore, in implementing PMSE, the parties involved
must take into account seven principles. In further
detail, the seven principles are good faith, prudence,
transparency, trustworthiness, accountability, balance,
fairness, and soundness. The parties that may conduct
PMSE are business actors, consumers, individuals, and
state administrative agencies.
This regulation defines business actors as every individual
or business entity in the form of a legal entity or non-legal
entity. Such business actors comprise domestic business
actors and foreign business actors conducting business
activities in PMSE.