Page 9 - Newsletter (New Regulation on Stamp Duty and Tax Cluster in Job Creation Law)

DDTC Newsletter Vol.04 | No.08 I November 2020 Page 9 of 12

New Regulation on Stamp Duty and Tax Cluster in

Job Creation Law

constitute luxury residential groups, such as luxury Amendment to the Minister of Finance Regulation
homes, apartments, condominiums, townhouses, and No. 13/PMK.010/2017 concerning the Stipulation of
the like. Export Goods Subject to Export Duty and Export Duty
Tariffs (MoF Reg. 166/2020).
Second, a 40% SLTGs rate is imposed on groups of air
balloons and air balloons that can be piloted, other This regulation has been issued to promote the
aircraft without propulsion, and groups of ammunition export of forestry products in the form of wood
and other firearms, except for state needs. veneer and pencil slats and to endorse the domestic
downstreaming of processed wood products in the
Third, a 50% SLTGs rate is imposed on aircraft groups form of merbau wood, white meranti wood, and yellow
other than those subject to the 40% rate, except for
meranti wood.
state or commercial air transportation needs. The
50% SLTGs rate is also imposed on groups of firearms Through MoF Reg. 166/2020, the authorities revise
and other firearms, except for state purposes. the amount of export duty tariffs and the description
of the types of export goods in the form of timber
Fourth, a 75% SLTGs rate is imposed on cruise ships, subject to export duties previously listed in Appendix
excursion boats, and similar vessels specifically II letter A of the Minister of Finance Regulation No. 13/
designed for the transportation of people, ferries of PMK.010/2017 concerning the Stipulation of Export
all types, except for state purposes or public transport
Goods Subject to Export Duty and Export Duty Tariffs
and yachts.
as amended by the Minister of Finance Regulation No.
Dissimilar to the former regulation, however, the 164/PMK.010/2018 (MoF Reg. 13/2017 as amended
by MoF Reg. 164/2018).
exemption from a 75% SLTGs rate on yachts is
not only granted for state and public transportation Veneer wood in the form of thin sheets of wood
purposes, but it is now also granted for yachts used obtained by peeling or cutting round logs or sawn
for tourism business.
timber with a thickness of not more than 6 mm, is
currently subject to a 5% export duty tariff. This tariff
However, if within four years after the import or
is lower than that imposed in the previous regulation,
acquisition, a yacht for tourism business is not used in
i.e. a 15% tariff.
accordance with its original purpose or is transferred
to another party, the exempted or underpaid SLTGs Veneer wood that is currently exempted from export
and/or VAT must be paid. duties comprises wood slats/pencil slats with a width
of not more than 80 mm. Wooden slats/pencil slats
The exemption from SLTGs on yachts is aimed at
with a width of not more than 70 mm constitute those
encouraging the Indonesian marine tourism industry.
formerly exempted. On another note, the details of the
The development of the marine tourism industry
HS codes of veneer wood are also more diverse than
is expected to promote the growth of other related
those listed under the previous regulation.
sectors and increase potential state revenues.
MoF Reg. 166/2020 also changes the details on the
Further provisions regarding the determination of
types of processed wood subject to export duties.
the types of BKP other than motor vehicles that are
Currently, 3 types of processed wood products are
subject to SLTGs and procedures for the exemptions
subject to export duties. First, processed wood
from SLTGs will be further regulated by the Minister of
products that are leveled on the four sides, thus,
Finance Regulations.
the surface becomes flat and smooth with a cross-
2
2
sectional area of 1,000 mm to 4,000 mm . This first

type of product is subject to a 5% export duty.
Types and Tariffs of Export Duties for
Exported Timber Second, processed wood products that are leveled
on the four sides, thus, the surface becomes flat and
smooth, of the following types, merbau, white meranti,
The government has re-adjusted the export duty
and yellow meranti, with a cross-sectional area of
tariffs and the description of the types of export goods
2
2
more than 4,000 mm to 10,000 mm . Products of this
in the form of timber. Changes in the amount of export
type are subject to a 10% export duty tariff.
duty tariffs and descriptions of the types of goods
are outlined in the Minister of Finance Regulation Third, processed wood products that are leveled on the
No. 166/PMK.010/2020 concerning the Second four sides, thus, the surface becomes flat and smooth,