Page 6 - Newsletter (New Tax Facilities on Goods and Services Required to Address COVID-19 and Revision on State Budget)

DDTC Newsletter Vol.03 | No.08 I April 2020 Page 6 of 9

New Tax Facilities on Goods and Services Required to Address
COVID-19 and Revision on State Budget

Customs Treatment of Differences in administrative penalties in the form of fines. This implies
Weight and/or Volume of Imported that the difference in weight that does not exceed 0.50%
is not an error in notifying the quantity of goods.
and Exported Bulk Goods On the other hand, the difference in weight and/or volume

exceeding 0.50% of the total will be subject to import
The Ministry of Finance has issued a regulation
duties, export duties, and administrative sanctions in
stipulating the customs treatment of differences in
the form of fines. The difference that exceeds 0.50% is
weight and/or volume of imported and exported bulk
deemed as the taxpayer’s error in notifying the quantity
goods. The provisions are outlined in the Minister of
of goods.
Finance Regulation No. 26/PMK.04/2020 concerning
the Customs Treatment of Differences in Weight and/
or Volume of Imported Bulk Goods and Exported Bulk Extended Implementation Period of
Goods Subject to Export Duties (MoF Reg. No. 26/2020).
Taxation Rights and Obligations
Promulgated on 27 March 2020, this regulation will come
into effect 30 days thereafter.
The Director General of Taxes has issued a regulation
The policies are aimed at providing legal certainty and outlining the procedures for calculating the extension of
optimizing services in the import and export of bulk the implementation of taxation rights and obligations.
goods. The treatment is required to accommodate on- The regulation was released as technical guidelines due
field facts regarding differences in weight and/or in to the extended force majeure period resulting from
volume of goods due to depreciation or additions. the Corona Virus Disease 2019 (COVID-19) national
Under this regulation, customs and excise officials may pandemic.
provide customs treatment for differences in weight Under the Head of the National Disaster Management
or volume. The customs treatment shall apply if the Agency Decree No. 13.A 2020 concerning the Extension
difference in weight and/or volume of imported or of Status of the Certain Disaster Emergency Conditions
exported bulk goods does not exceed 0.50% of the total Due to the Coronavirus Pandemic in Indonesia, the
weight and/or volume. emergency status due to COVID-19 is set for 91 days from
The customs treatment may be given under three 29 February 2020 to 29 May 2020.
conditions. First, the difference is found when imported The guidelines are outlined in the Director General
goods are unloaded. In this regard, the difference is of Taxes Circular No. SE-22/PJ/2020 concerning the
subsequently deemed as an error occurring beyond the Guidelines for the Extension of the Implementation
carrier’s ability due to depreciation by natural factors or Period of Taxation Rights and Fulfillment of Taxation
differences in methods and/or measuring instruments. Obligations in Government Regulation in Lieu of Law
Number 1 of 2020 concerning State Financial Policy
If the calculation is conducted using a measuring
instrument provided by the carrier or another party, and Financial System Stability to Address Corona Virus
Disease 2019 (COVID-19) and/or to Counter Threats that
the measuring instrument must be calibrated by the
competent authority and must have a valid calibration Hinder the National Economy and/or Financial System
Stability (SE-22/PJ/2020).
certification. In the event that the measuring instrument
is still sealed, the seal must be in good condition. In effect since 9 April 2020, the regulation outlines that
Second, the difference is found during the physical the Director General of Taxes has extended the period of
five matters related to the implementation of taxation
examination of imported and/or exported bulk goods.
Under this condition, the DGCE will collect import duties rights and obligations. First, the extension of the filing
period of taxpayer objections. If the deadline for filing
without imposing penalties. This is possible if the results
of the physical examination show that the difference in taxpayer objections falls within the force majeure period,
an extension shall be given up to a maximum of six
weight and/or volume does not exceed 0.50% of the total.
months
On the other hand, import duties shall be collected and
The regulation extends the period of taxpayers to file
penalties shall be imposed if the difference in weight
and/or volume exceeds 0.50%. The difference in weight objections to nine months as of the date the notice of tax
assessment is sent or as of the date of tax withholding.
and/or volume exceeding 0.50% is considered an error
in notifying the quantity of goods. The nine-month period results from a period of three
months as stipulated in Article 25 paragraph (3) of the
Third, the difference is found during customs audits on General Tax Provisions and Procedures Law plus the six-
imported or exported bulk goods. If the audit results month extension.
show a difference that does not exceed 0.50% of the
Second, the extension of the period of tax overpayment
capacity, customs and excise officials will calculate
import duties and export duties without imposing refunds. If the period of tax overpayment refunds,