ANNOUNCEMENT 06 Dec 2013In December 2013, the government of Indonesia announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
Regulation 176/PMK.04/2013 (in Bahasa Indonesia):
On 6 December 2013, the Indonesian Ministry of Finance issued regulation176/PMK.04/2013 concerning import duty exemptions for goods used in the production of export-oriented industries. It amends regulation 254/PMK.04/2011 (cf. Related Measures).
With the new regulations, the import duty exemptions hold also for materials from outside the Customs Area, Free Trade Zones or Bonded Zones. Also, the new exemptions hold for materials which are not necessarily part of the finished product.
Furthermore, importers no longer need to submit a separate exemption application which is now done automatically via the Company Registration Number (Nomor Induk Perusahaan; hereinafter: NIPER) application. However, the same requirements as before hold when applying for the NIPER.
The regulations came into force 60 days after its issuance, i.e. on 2 February 2014. On the same day, a similar regulation regarding import duty drawbacks came into force (cf. Related Measures).
Companies decide to choose the exemption or drawback facility depending on the export volume and the applicable value of import duty on raw materials (pwc taxflash, December 2013, no. 21).