Maria Devina Sanjaya (16/392626/EK/20708)

Value Added Tax

Income tax art. 22 is paid as income tax in the current year and collected by government
treasurer, certain bodies, and certain corporate taxpayer for the sales of luxurious goods. The
tax is enacted to:
1. Importing and exporting activities, with the tax rate varied from 0.5% up to 10%.
2. Purchase of goods by government treasurer and Proxy of Budget User (KPA), Expenditure
Treasurer, and KPA or Payment Warrant Officer; with tax rate of 1.5%.
3. Purchase of goods by certain business entities such as BUMN, restructured BUMN, or
certain businesses which are directly owned by BUMN; with tax rate of 1.5%.
4. Sales of certain industrial products; such as cement, paper, steel, automotive, and
pharmacy; to domestic distributors; with tax rate of 0.1% up to 0.45%.
5. Sales of oil, gas, and lubricant by the producers or the importers; with tax rate of 0.25-0.3%
for oil, and 0.3% for gas and lubricant.
6. Sales of motor vehicle in the country by Exclusive Licensee Agent (ATPM), Licensee
Agent (APM), general importer; with tax rate of 0.45%.
7. Purchase of materials for industrial needs or exports by industrial bodies or exporter in the
field of forestry, plantation, agriculture, livestock, and fishery; with tax rate of 0.25%.
8. Purchase of mining commodities by bodies or individuals who hold mining business
permits; with tax rate of 0.5%.
9. Sales of gold bars by the producer; with tax rate of 0.45%.
10. Sales of luxurious goods, such as private jet, cruise, etc., with tax rate of 5%.
Of all those tax objects, there are some exceptions such as imported goods that are not included
as Income Tax payables; imported goods that are freed of Import Duty and VAT; temporary
imports; reimported goods; imported gold bars; etc.
The collection of Income Tax art. 22 is not final and could be counted as payment of income
tax in the current year. For tax payers who don’t have Tax Payer Identification Number
(NPWP), the tax rate will be 100% higher than the normal rate.
Law No. 42 Year 2009 is about Value Added Tax (PPN) and Sales Tax on Luxurious Goods
(PPnBM). According to the law, tax rate for PPN is 10% while PPnBM rate is from 10% up to
200%.

References:
1. Mardiasmo. Perpajakan Edisi Terbaru 2016. Yogyakarta: Penerbit Andi, 2016.
2. Direktorat Jenderal Pajak Kementerian Keuangan. UNDANG-UNDANG REPUBLIK INDONESIA NOMOR
42 TAHUN 2009. n.d. http://ketentuan.pajak.go.id/index.php?r=aturan/rinci&idcrypt=oJifpKE%3D
(accessed March 2, 2018).