ANNOUNCEMENT 06 Dec 2013In December 2013, the government of Indonesia announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
Official regulation 177/PMK.04/2013 (in Bahasa Indonesia):
On 6 December 2013, the Indonesian Ministry of Finance issued regulation 177/PMK.04/2013 concerning import duty drawbacks for goods used in the production of export-oriented industries. It replaces regulation 253/PMK.04/2011 (cf. Related Measures).
With the new regulations, the import duty drawbacks hold for materials from outside the Customs Area, Free Trade Zones or Bonded Zones. Also, the new drawbacks hold for materials which are not necessarily part of the finished product.
Furthermore, importers no longer need to submit a separate drawback 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 regulation came into force 60 days after its issuance, i.e. on 2 February 2014. On the same day, a similar regulation regarding import duty exemptions came into force (cf. Related Measures).
Companies can choose between the exemption or the drawback facility depending on the export volume and the applicable value of import duty on imported raw materials (cf. pwc taxflash, Indonesia, December 2013, no.21).