Page 8 - Newsletter (New Regulation on Stamp Duty and Tax Cluster in Job Creation Law)

DDTC Newsletter Vol.04 | No.09 I November 2020 Page 8 of 12

New Regulation on Stamp Duty and Tax Cluster in

Job Creation Law

Yachts for Tourism Businesses
Based on Law no. 9/2020, the state revenue target is
set at IDR 1,743.6 trillion, covering tax revenues of IDR Exempted from SLTGs
1,444.5 trillion, non-tax state revenues (Penerimaan
Negara Bukan Pajak/PNBP) of IDR 298.2 trillion, and The government restipulates the imposition of Sales
grant revenues of IDR 902.8 billion. Tax on Luxury Goods (SLTGs) on taxable goods
(Barang Kena Pajak/BKP) classified as luxurious other
In further detail, tax revenues targets cover the
than motor vehicles. The restipulation is outlined
revenues from income tax of IDR 683.77 trillion, value
in Government Regulation no. 61/2020 concerning
added tax (VAT) and sales tax on luxury goods (SLTGs) Taxable Goods Classified as Luxurious Other Than
of IDR 518.54 trillion, land and building tax (Pajak Motor Vehicles Subject To Sales Tax On Luxury Goods
Bumi dan Bangunan/PBB) of IDR 14.83 trillion, and (Gov. Reg. 61/2020).
other tax revenues of IDR 12.43 trillion. Also in the tax
revenue post, excise revenue target is set at IDR 180 The regulation has been enacted to establish a balance
trillion, import duty revenues at IDR 33.17 trillion, and between taxation on low-income consumers and high-
export duty revenues of IDR 1.78 trillion. income consumers and to encourage the tourism
industry.
Next, the state expenditure ceiling is set at IDR 2,760.0
Promulgated on 16 October 2020, Gov. Reg. 61/2020
trillion. The expenditure is divided into central
takes effect 60 days thereafter. The enactment of Gov.
government expenditures of IDR 1,954.5 trillion and
Reg. 61/2020 simultaneously revokes Government
transfers to regions and village funds pf IDR 795.47
Regulation No. 145 of 2000 concerning the Types of
trillion. The primary balance is minus IDR 663.1
Taxable Goods Classified as Luxurious Subject to Sales
trillion with a budget deficit of IDR 1,006.37 trillion.
Tax on Luxury Goods as amended by Government
Thus, budget financing equals the value of the budget
Regulation No. 12 of 2016 (Gov. Reg. 145/2020
deficit.
as amended by Gov. Reg. 12/2006). However, all
implementing regulations of Gov. Reg. 145/2000 as
amended by Gov. Reg. 12/2006 remain valid insofar as
Table 4 Details of the Posture of State Budget for
Fiscal Year 2021 they do not contradict the provisions under Gov. Reg.
61/2020.
No Description Amound
(in thousand rupiah) Gov. Reg. 145/2000 as amended by Gov. Reg. 12/2006
A. State Revenues 1,743,648,547,327 formerly imposed SLTGs on luxurious BKP other than
motor vehicles at a rate of 10% to 75%. These rates,
I. Domestic Revenues 1,742,745,730,819
1. Tax Revenues 1,444,541,564,794 however, are amended and restipulated under the
2. Non-Tax State Revenues 298,204,166,025 Minister of Finance Regulation No. 35/PMK.010/2017
II. Grant Revenues 902,816,508 concerning the Types of Taxable Goods Classified as
Luxurious Other than Motor Vehicles Subject to Sales
B. State Expenditure 2,750,028,018,431
Tax on Luxury Goods as amended by the Minister of
I. Central Government Expenditure 1,954,548,542,970
Finance Regulation No. 86/PMK.010/2019 (MoF Reg.
II. Transfer to Regions and Village Funds 795,479,475,461 35/2017 as amended by MoF Reg. 86/2019).
C. Primary Balance -633,116,656,104
MoF Reg. 35/2017 as amended by MoF Reg. 86/2019
D. Budget (A-B) Surplus/(Deficit) -1,006,379,471,104 imposed SLTGs on luxurious BKP other than motor
% Budget Deficit against GDP -5,70 vehicles by classifying them into four groups and
imposing rates of 20% to 75%.

E. Budget Financing 1,006,379,471,104
I. Debt Financing 1,177,350,880,761 As per the comparison between the rates regulated
under Gov. Reg. No.61/2020 and the rates under MoF
II. Investment Financing -184,459,515,221
Reg. 35/2017 as amended by MoF Reg. 86/2019, the
III. Lending 448,056,564
changes lie in the exemption of the fourth type of
IV. Guarantee Obligations -2,715,736,000 goods. The rates and types of goods in the first to the
V. Other Financing 15,755,785,000 third group remain similar.
Source: Appendix of Law No. 9/2020. In summary, several provisions that remain the same
as the previous regulation are as follows. First, Gov. Reg.
No.61/2020 imposes a 20% SLTGs rate on goods that