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Indonesia updates law on the digital implementation of tax rights

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Rules have been issued about electronic issuance

Jeklira Tampubolon and Aditya Wicaksono of GNV Consulting lay out the rules for implementing tax rights, bonded zones and the use of book value.

Implementing tax rights and fulfilling tax obligations

The Minister of Finance (MoF) has issued Regulation No. 63/PMK.03/2021 dated June 7 2021 concerning the procedures for the implementation of tax rights, the fulfilment of tax obligations and the electronic issuance, signing, and delivery of tax decisions and assessments (PMK-63). PMK-63 has been effective since June 8 2021.


The main points of these regulations are summarised as follows:

  • Taxpayers may implement rights and fulfil tax obligations using electronic signatures both certified and non-certified:

  • To obtain a certified electronic signature, the taxpayer should submit an application to the electronic certificate provider through the DGT website.

  • To obtain DGT-TAC the taxpayers should submit an application to the DGT using an electronic channel by completing the information using the form provided.

  • In the event that the electronic channel is not available, the taxpayer shall request the DGT-TAC from the Tax Office. The Tax Office will verify the application and shall issue the decision after one working day from complete submission.

Bonded zones

On June 8 2021, the MoF issued Regulation No. PMK 65/PMK.04/2021 concerning bonded zones (PMK-65). PMK-65 is the amendment of MoF Regulation No. 131/PMK.04/2018. This PMK-65 will become effective on August 8 2021.


The highlights of this regulation amendment are as follows:

  • IT inventory shall be accessible as a subsystem of accounting by both DGT and DGCE for the purposes of audit and supervision;

  • Real-time CCTV shall be accessible by DGT and DGCE as well as recording for the past seven days;

  • Stock taking is now required to be reported within two months to the Tax Office where the VAT return reported;

  • Bonded zone inbound delivery approval should be available prior to preparing the VAT invoice. The VAT invoice should be marked with ‘VAT not collected’ or ‘VAT and LGST not collected’;

  • The bonded zone tax and customs facilities now clearly cover imported raw materials, auxiliary, and packaging owned by an overseas taxpayer, provided those materials stay in the bonded zone until they are exported. Lenience is available for the materials provided for delivery between zones or temporary local delivery. This may be an issue for toll manufacturing;

  • Clearly states that in the case that an inbound delivery to a bonded zone is not supply of taxable goods, such supply is not subject to VAT and LGST and no VAT invoice is required;

  • Clawback of import taxes or VAT and LGST for goods owned by an overseas taxpayer cannot be claimed. This may be an issue for toll manufacturing. The VAT should be paid by the goods receiver using a self-remittance tax payment slip;

  • Update on the basis for calculation of excise and VAT or VAT and LGST for local delivery from a bonded zone;

  • Update on VAT and LGST on outbound delivery of local-origin capital goods;

  • Update on procedures for suspension of a bonded zone license;

  • Update on the settlement of remaining inventories in the event of bonded zone dissolution; and

  • Update on corporate guarantee procedures.

Book value for transfers and acquisition of assets

The MoF has issued Regulation No. 56/PMK.010/2021 dated June 3 2021 concerning the use of book value for transfers and acquisition of assets during mergers, consolidations, expansions or acquisitions (PMK-56). PMK-56 amends MoF Regulation No. 52/PMK.010/2017.


The highlights of this regulation amendment are as follows:

  • For the purpose of income tax, the taxpayer is allowed to use book value after DGT approval;

  • Update on the criteria of taxpayers that are allowed to use book value for business expansion and acquisition;

  • Update on procedure for submitting a request to use book value. This update also covers the additional documents that should be provided to the Tax Office during the process of application; and

  • Publicly listed companies, and companies that plan to go public, should fulfil the requirement of registration statement to OJK within two years since the DGT approval for business expansion using book value. The deadline can be extended for an additional two years by submitting a request letter to the DGT, accompanied by an explanation letter and its supporting documents.


Jeklira Tampubolon

Partner, GNV Consulting



Aditya Wicaksono

Director, GNV Consulting


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