Page 9 - Newsletter(Additional Covid-19 Related Tax Incentives and Technical Guidelines for the Appointment of E-Commerce VAT Withholders)

DDTC Newsletter Vol.04 | No.05 I September 2020 Page 9 of 13

Additional Covid-19-Related Tax Incentives and Technical
Guidelines for the Appointment of E-Commerce VAT Withholders

TPS entrepreneurs are required to submit a list of General of Taxes, the Director General of International
stored imported goods in the form and period as per Taxation, or tax authorities of the Tax Treaty (Perjanjian
the statutory regulations on TPS. Information on the Penghindaran Pajak Berganda/P3B) Partner through
storage list covers the number of packages, the type of the competent authority of Treaty Partner. This
packaging, and/or the number of bulk goods that have regulation stipulates that resident taxpayers (Wajib
been stored. The storage list is submitted via SKP no Pajak Dalam Negeri/WPDN) may submit requests for
later than 24 hours after the storage is completion. In the implementation of MAP to the Director General of
the event that the storage list is not submitted within Taxes in the event that they receive tax treatments by
that period, the importer will be subject to sanctions the tax authorities of the Treaty Partner that are not in
and application for storage in other places that are accordance with the provisions of the Tax Treaty.
treated the same as TPS will not be further processed.
Tax treatment by the Director General of Taxes
If at the time of unloading, there is a difference deemed not in accordance with the provisions of the
between the number of imported goods and the Tax Treaty according to the WPDN consists of double
inward manifest customs declaration, two provisions taxation caused by transfer pricing adjustments and/
will apply. First, the carrier is obliged to pay the or differences in the interpretation of the tax treaty
shortage of import duties and taxes on imports on provisions. The Director General of Taxes will follow
imported goods that are not unloaded and subject to up on the request for the implementation of MAP by
administrative sanctions as per statutory regulations, conducting MAP negotiations with the competent
in the event that the unloaded imported goods are authority of the Treaty Partner within the time limit
fewer than those notified. specified in the Minister of Finance Regulation No. 49/
PMK.03/2019 (MoF Reg. 49/2019).
Second, the carrier is obliged to pay administrative
sanctions as per statutory regulations in the event that In the event that the MAP negotiation period has been
the number of imported goods unloaded is more than exceeded and the MAP negotiation has not produced
that declared. These two provisions are exempted if mutual agreement, the Director General of Taxes will
the carrier can prove that the mismatch in the number submit a notification regarding the termination of the
of imported goods is beyond its capabilities. implementation of MAP negotiation to the Competent
Authority of the Tax Treaty Partner and the Applicant
The carrier is responsible for import duty payable on or WPDN related to the request for the implementation
imported goods unloaded at the Customs Area or other of MAP.
places. The TPS entrepreneur, however, is responsible
for import duty payable on imported goods stored at However, if the request for the implementation of MAP
the TPS. Further, the importer is responsible for import has not resulted in mutual agreement, the request
duty payable on imported goods stored at other places for the implementation of MAP may be renewed. To
which are treated as equivalent to TPS. respond to MAP requests, the Director General of Taxes
establishes a discussion committee that is tasked with
determining the negotiating position and/or scope
Processing of Requests for the of the MAP negotiation and/or whether or not the
request for the implementation of MAP is approved.
Implementation of MAP and the
Implementation of MAP Five conditions are to be met in the proposed request
for the implementation of MAP. First, it is submitted
in writing in Indonesian. Second, the request outlines
The Director General of Taxes has issued a new
the tax treatment by the Director General of Taxes
regulation on the processing of requests for the
which is not in accordance with the provisions of the
implementation of Mutual Agreement Procedure
Tax Treaty according to the WPDN. Third, submitted
(MAP) and the implementation of MAP. The MAP-
within the time limit as stipulated under the Tax
related policies are outlined in the Director General
Treaty. If such a time limit is not regulated in the Tax
of Taxes Regulation No. PER-16/PJ/2020 concerning
Treaty, the submission should be no later than three
the Processing of Requests for the Implementation of
years as of the occurrence of the tax treatment which
Mutual Agreement Procedure and the Implementation
is not in accordance with the Tax Treaty provisions.
of Mutual Agreement Procedure (PER-16/2020).
Fourth, signed by the WPDN or his representatives as
The requests for the implementation of MAP can be
referred to under Article 32 paragraph (1) of Law no.
submitted by Indonesian citizens through the Director
6 of 1983 as amended by Law no. 16 of 2009. Fifth,