Page 3 - Newsletter (New Provisions on Land & Building Tax)

DDTC Newsletter Vol.02 | No.11 I December 2019 Page 3 of 4

New Provisions on Land & Building Tax

to tax subjects and taxpayers although the SPOP forms APBN) or the Regional Budget (Anggaran Pendapatan
in the old format have been submitted before 1 January dan Belanja Daerah/APBD) or second, the goods
2020. Hence, the SPOPs that have been reported by the originate from grants. The following is the comparison of
tax subjects and taxpayers before 1 January 2020 must the minimum document requirements to obtain tax relief
be resubmitted in the new format. In the event that the for goods imported by the government.
SPOPs are in the old format, they shall be returned by the
DGT to the tax subjects or taxpayers concerned. To obtain import duty exemptions, the relevant agency
needs to submit an application to the Minister of Finance
Restipulation of Import Duty through the Head of Regional Office of the Directorate
Exemptions on Public Goods Imported General of Customs and Excise or the Head of Prime
Customs and Excise Office. The application is then
by the Government submitted online through the Portal of the Directorate
General of Customs and Excise (DGCE) or the Indonesian
The government has issued new provisions related to National Single Window System by attaching the scanned
import duty exemptions on public goods imported by the required original documents. Applicants may also submit
government. The restipulation is stated in the Minister documents in written format in the event of portal
of Finance Regulation No. 171/PMK.04/2019 concerning disruptions.
Import Duty Exemptions on Public Goods Imported by
the Government (MoF Reg. No. 171/2019). The import Approval or rejection of the application for exemption
of goods referred to in this regulation is aimed at the shall be notified no later than five working hours upon the
public interest which is defined as the nation, state, and/ receipt of complete and correct application if submitted
or society interest rather than prioritizing the economic online. In contrast, for applications submitted in writing,
interest. approval or rejection shall be notified no later than three
working days upon the receipt of complete and correct
Through MoF Reg. No. 171/2019, the government application.
expands the import duty exemptions on goods imported
by the government. The exemption for import will then Furthermore, tax facilities in the form of non-imposition
be granted for the import of goods through bonded of value added tax (VAT) or Sales Tax on Luxury Goods
zone, special economic zone, or free trade zones; (SLTGs) can be provided for goods imported by the
transfer of imported goods which have received import government that are exempt from import duty. In
duty exemption from the facility recipient; as well as contrast, the period of import must not exceed one year
temporary settlement of imported goods by granting from the date of import duty exemption granting decree.
them to the central government.
As for imported goods which are exempt from import
This regulation sets forth that import duty exemptions duty but not used for public interest, the agency in
shall be provided in two conditions. First, the goods are question is subsequently required to pay import duties
imported by the government and funded by the State and tax payable on import. Further, the agency is subject
Budget (Anggaran Pendapatan dan Belanja Daerah/ to administrative sanctions as per customs or tax

Table 1 – Document Requirements for the Application of Import Duty Exemptions on Goods Imported
by the Government

Imported Goods that are Funded by the State Budget or Imported Goods Originating from Grants
Regional Budget
(i) photocopy of the Budget Implementation Checklist (i) photocopy of statement from the grantor
(Daftar Isian Pelaksanaan Anggaran/DIPA) or similar in the form of a gift certificate or memorandum
documents; of understanding stating that the items are public
(ii) a statement letter declaring that the funding in goods;
DIPA or similar documents does not include elements (ii) photocopy of grant approval document from
of import duty and/or tax on import; and the central government if the imported goods are
(iii) photocopy of the agreement or contract for the foreign grants for the regional government.
procurement of goods with a third party stating that
the price in the agreement or contract does not cover
payment of import duties and/or tax on import.

Source: MoF Reg. No. 171/2019