Page 11 - Newsletter (Reduction of Income Tax Rates for Publicly Listed Companies and Establishment of VAT Withholder Criteria for E-Commerce Businesses)

DDTC Newsletter Vol.04 | No.01 I July 2020 Page 11 of 13

Reduction of Income Tax Rates for Publicly Listed Companies and
Establishment of VAT Withholder Criteria for E-Commerce Businesses

The Stipulation of Import Duties Third, the in-quota preferential tariff is the preferential
in the Context of the Indonesia- import duty tariff in the TRQ scheme that is stipulated
Australia Comprehensive Economic for imported goods using the TRQ certificate and the
amount neither exceeds the TRQ certificate nor the
Partnership Agreement (IA-CEPA) annual quota of the TRQ scheme.
Fourth, the out-quota preferential tariff is the
The Government of the Republic of Indonesia has
preferential import duty tariff in the TRQ scheme
ratified the Indonesia-Australia Comprehensive
stipulated for imported goods that do not use the
Economic Partnership Agreement through Law No. 1
TRQ certificate or use a TRQ certificate in an amount
of 2020 concerning the Ratification of the Indonesia-
exceeding the TRQ certificate and/or the annual quota.
Australia Comprehensive Economic Partnership
Agreement. The TRQ certificate is a certificate issued by the
issuing institution in Australia which contains
The entry into force of this agreement renders
quotas for certain products per shipment and is
preferential tariffs for imported goods from Australia.
sent electronically through the INSW System which
The stipulation of the preferential tariffs is outlined
will be used as the basis for the granting of in-quota
in the Minister of Finance Regulation No. 81/
preferential tariffs in the TRQ scheme.
PMK.010/2020 concerning the Stipulation of Import
Duty Tariffs in the Framework of the Indonesia- Fifth, there are several commodities of which the
Australia Comprehensive Economic Partnership out-quota tariffs are based on the ASEAN-Australia-
Agreement (MoF Reg. 81/2020). New Zealand Free Trade Area (AANZFTA) import
duties. This regulation, however, emphasizes that
The details of the preferential tariffs for each
if the statutory import duty tariff is lower than the
classification of imported goods from Australia from
preferential tariff or the in-quota and/or out-quota
2020 to 2036 onwards are listed in Appendix A of MoF
preferential tariff, statutory import duty tariff shall
Reg. 81/2020. Further, Appendix A also describes the
apply.
HS Codes and the description of the classification of
goods in Indonesian and English. The IA-CEPA-based preferential tariffs are imposed
as per the Minister of Finance Regulation No. 82/
Under MoF Reg. 81/2020, the government also applies
PMK.04/2020 concerning the Procedures for the
a tariff rate quota (TRQ) scheme on imported goods
Imposition of Import Duty Tariffs on Imported Goods
from Australia. The TRQ scheme is a scheme to impose
Based on the Indonesia-Australia Comprehensive
import duty tariffs based on the quota for certain
Economic Partnership Agreement (MoF Reg.
products specified in MoF Reg. 81/2020. Preferential
82/2020).
rates based on the TRQ scheme are listed in Appendix
B. Under MoF Reg. 82/2020, the government asserts
that to obtain preferential tariffs, in-quota preferential
In summary, Appendix B contains information on
tariffs, and/or out-quota preferential tariffs, imported
products subject to the TRQ scheme. The products
goods must meet the Rules of Origin. The criteria
include live bulls other than cattle and oxen, potatoes,
consist of origin criteria, consignment criteria, and
carrots, oranges, mandarin oranges, lemons and limes,
procedural provisions.
feed grains, hot/cold rolled steel coil. In addition,
appendix B outlines information on HS Codes,
description of goods, TRQ annual quota from 2020 to Changes in Types of Imported Goods to
2029, in-quota tariff, and out- quota tariff out.
Address Covid-19 Entitled to Taxation
TRQ is stipulated based on five provisions. First, 2020
TRQ, in particular, will take effect on 5 July 2020 until Facilities
31 December 2020. TRQ of the following year will take
effect from 1 January to 31 December. The government eliminates the types of imported goods
to address Covid-19 pandemic entitled to customs
Second, TRQ annual quota is the total quota set for and/or excise and taxation facilities. The reduction
certain products on an annual basis as per the IA-CEPA. is outlined in the Minister of Finance Regulation No.
The TRQ annual quota is calculated on a pro-rata basis 83/PMK.04/2020 concerning Amendments to the
according to the percentage of remaining years as of 5 Minister of Finance Regulation No. 34/PMK.04/2020
July 2020. concerning the Granting of Customs and/or Excise