Page 5 - Newsletter (Changes in Small Tax Office’s Tasks, Functions and Operational Procedures)

DDTC Newsletter Vol.03 | No.05 I March 2020 Page 5 of 6

Changes in Small Tax Office’s Tasks, Functions

and Operational Procedures

(nomor pokok wajib pajak/NPWP) and those who In further detail, four officials have been appointed
already have NPWP with large tax revenue contributions, by the Minister of Finance as KPA BM DTP. First, the
such as government agency taxpayers, joint operations, Director General of Metal, Machinery, Transportation and
companies arranging customs services identification Electronics Industries from the Ministry of Industry will
number (perusahaan pengurusan jasa kepabeanan/ manage the BM DTP budget from 8 industrial sectors.
PPJK), and branches without a headquarters, as well as These industries comprise the manufacturing of electric
other taxpayers. motorcycles, fiber optic cables, and communication tools.

This policy is adopted due to the DGT’s relatively limited Second, the Director General of Chemical, Pharmaceutical
resources against increasing tax revenue targets. Through and Textile Industries from the Ministry of Industry,
this policy, therefore, the Tax Office is expected to focus who is to handle the BM DTP budget from 10 industrial
on the allocation of available resources to supervise and sectors. These industries include the manufacturing
audit taxpayers more accurately and effectively. industry of cosmetics, plastic packaging, paint, gypsum,
and leather tanning.
Under this policy, the Tax Office is also expected to
focus more on taxpayers whose tax potentials have not Third, the Director General of Agricultural Industries
been optimally explored and that have not carried out from the Ministry of Industry shall manage the BM DTP
their tax obligations and are not registered in the DGT’s funds from the almond nuts processing industry. Fourth,
administration system. the Deputy of Drug, Narcotics, Psychotropic, Precursor,
and Addictive Substances Control from the National
Import Duty Borne by the Government Agency of Drug and Food Control shall handle the fund
for Certain Industrial Sectors budget from the pharmaceutical industry.

Further, the budget ceiling allocated for each industry
The government has released a regulation that provides varies from IDR 40 million to IDR 131 billion. In addition
government-borne import duty (bea masuk ditanggung to stipulating the budget ceiling, this regulation also
pemerintah/BM DTP) for raw materials and goods outlines the types of goods and materials entitled to BM
imported by 20 certain industries. The provision of DTP facilities.
DTP BM facilities is outlined in the Minister of Finance
Regulation No. 12/PMK.010/2020 concerning Import This regulation, however, emphasizes that the goods and
Duty Borne by the Government for Certain Industrial materials are not goods and materials which are subject
Sectors Budget Year 2020 (MoF Reg. No.12/2020). to 0% import duty either due to domestic regulations or
international treaties or agreements.
Under this regulation, the government stipulates the
amount of the budget ceiling for each industry, including Moreover, the goods are not goods and materials that
the Government-Borne Import Duty Subsidy Budget User are subject to anti-dumping import duty (bea masuk anti
Proxy (Kuasa Pengguna Anggaran Belanja Subsidi Bea dumping/BMAD) or temporary BMAD, safeguard import
Masuk Ditanggung Pemerintah/KPA BM DTP) that is to duty/temporary safeguard import duty, compensation
manage the budget ceiling. import duty, or recompensation import duty.

The regulation stipulates that the KPA BM DTP are These goods and materials shall not be intended to be
officials at the state ministries/institutions set forth by stockpiled in bonded zones. The regulation shall be
the Minister of Finance to manage the government-borne valid as of the promulgation date, 8 February 2020 to 31
import duty subsidy budget. December 2020.

Latest taxation news and regulations, visit:

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