Page 5 - Newsletter (New Regulation on Stamp Duty and Tax Cluster in Job Creation Law)

DDTC Newsletter Vol.04 | No.08 I November 2020 Page 5 of 12

New Regulation on Stamp Duty and Tax Cluster in

Job Creation Law

not commenced production, relaxation of the rights of repayment of non-creditable input VAT. On the other
input VAT crediting, the stipulation of VAT objects and hand, Article 112 of Job Creation Law removes the
VAT non-objects, and revitalization of tax invoices. provisions in Article 9 paragraph (8) subparagraphs a,
d, h, i, and j, which essentially synchronize the rights of
Important changes in Article 1A can be found in Article
input VAT crediting under certain conditions.
1A paragraph (1) subparagraph g and Article 1A
paragraph (2) subparagraph d. Article 1A paragraph On another note, Article 112 of Job Creation Law
(1) subparagraph g of VAT Law as amended in Article also adds 3 new paragraphs to Article 9 of VAT Law,
112 of Job Creation Law removes consignment i.e. paragraph 9a, paragraph 9b, and paragraph 9c
supplies of taxable goods (Barang Kena Pajak/BKP) which are intended to provide relaxation in input VAT
from the definition of supplies of BKP. Next, Article 1A crediting under certain conditions. Input VAT crediting
paragraph (2) subparagraph d now also exempts the is relaxed by the revised provisions under Article 9
transfer of BKP for the purpose of share replacement paragraph (13) of VAT Law.
capital remittance provided that the party supplying
In terms of the revitalization of tax invoices, Article
and receiving is a PKP from the definition of BKP
112 of Job Creation Law revises the provisions under
supplies. This implies that BKP consignment supplies
Article 13 paragraph (5) subparagraph b which,
and capital participation in the form of assets (if the
in essence, stipulates the inclusion of the National
requirements are met) is now not subject to VAT.
Identity Number (Nomor Induk Kependudukan/
Further, Article 4A paragraph (2) subparagraph a of NIK) or passport number for non-resident individual
VAT Law as amended in Article 112 of Job Creation taxpayers for buyers who do not have a Taxpayer
Law exempts coal from mining products that are Identification Number (Nomor Pokok Wajib Pajak/
not subject to VAT. As such, supplies of coal are now NPWP) in the Tax Invoice.
included in the definition of BKP supplies and subject
Further, Article 112 of Job Creation Law also adds
to VAT.
Article 13 paragraph (5a) which confirms that a retail
Next, the most significant amendments and additions merchant PKP may prepare tax invoices without
can be found in Article 9 of VAT Law, particularly including information on the buyer’s identity as well
concerning the regulation of the rights of input VAT as the seller’s name and signature if supplying BKP
crediting by a PKP that has not been in production. As and/or JKP to the buyer with the characteristics of an
for Article 9 paragraph (2a) of VAT Law as amended end consumer.
in Article 112 of Job Creation Law, a PKP who has not
Details of the changes to the additional articles of VAT
performed any supplies and/or exports of BKP and/
Law in Job Creation Law can be seen in the Comparison
or taxable services (Jasa Kena Pajak/JKP) may credit
Matrix between VAT Law and the Tax Cluster in Job
their input VAT insofar as provisions on crediting
under VAT Law are met. Creation Law. Download here.
(iii) General Tax Provisions and Procedures Law
On the other hand, as per Article 9 paragraph (6a) of
VAT Law as amended in Article 112 of Job Creation
Article 113 contains changes to several provisions in
Law, if up to the first 3 years since the crediting of
Law No. 6 of 1983 concerning General Tax Provisions
input VAT, the PKP has not supplied BKP/JKP, the
and Procedures as amended by Law no. 28 of 2007
already credited input VAT cannot be credited. Details
concerning General Tax Provisions and Procedures.
of the cancellation of input VAT crediting right are
also outlined by two new paragraphs, i.e. Article 9 Amendments to General Tax Provisions and
paragraph (6c) and paragraph (6d). Procedures Law in Job Creation Law can be found in
Article 8, Article 9, Article 11, Article 13, Article 13A
Moreover, Article 9 paragraph (4b) subparagraph j of
(deleted), Article 14, Article 15, Article 17B, Article
VAT Law as amended in Article 112 of Job Creation
19, Article 27A (deleted), Article 27B (new), Article
Law removes a PKP that has not been in production
38, and Article 44B. Broadly speaking, the main points
from the PKP list that may apply for VAT refunds at
of changes pertain to the imposition of administrative
each tax period.
penalties, interest repayment, the provisions on
Notice of Tax Collection (Surat Tagihan Pajak/STP),
Article 112 of Job Creation Law also adds a new
and several other provisions.
paragraph in Article 9 of VAT Law, i.e. paragraph (6e)
which regulates the non-creditable input VAT, as well as
In further detail, the amount of the administrative
paragraph (6f) and paragraph (6g) which regulate the
penalty in the form of interest was formerly set at a fixed