This content is from: Indonesia
Indonesia: January 2020 tax round-up
Dewa Nugraha and Dwipa Abimanyu Dewantara of GNV Consulting Services summarise tax-related developments from January 2020 in Indonesia.

- areas as stated in the license for cultivation, license of plantation business, permanent license for cultivation, and/or cultivation rights title for plantation; and
- areas outside the area as mentioned above which is a single entity used for plantation business activities and is physically inseparable.
- areas as stated in IUPHHK-HA [business permit for utilisation of forest timber product in natural forest] and/or IUPHHBK-HA [business permit for utilisation of forest non-timber product in natural forest], IUPHHK-RE [business permit for utilisation of forest timber product through ecosystem restoration], IUPHHK-HTI [business permit for utilisation of timber forest product in industrial planted forest] and/or IUPHHBK-HT [business permit for utilisation of forest non-timber product in planted forest], or assignments from the government to the State Forest Public Enterprise (Perum Perhutani) based on laws and regulations; and
- areas outside the area as mentioned above which is a single entity used for forestry business activities and is physically inseparable.
- oil and gas work areas as stated in the agreements;
- areas outside the area as mentioned above which is a single entity used for oil and gas business activities and is physically inseparable.
- geothermal work areas as stated in the geothermal license, geothermal resources business concession, joint operation contract for geothermal resources businesses, geothermal resources business license, or geothermal business assignment;
- areas outside the area as mentioned above which is a single entity used for geothermal business activities and is physically inseparable.
The areas for land and building tax of the mineral and coal sector are:
- areas as stated in the mining business license, special mining business license, smallholder mining license, contract of work, or coal mining enterprise contract of work;
- areas outside the area as mentioned above which is a single entity used for mineral and coal mining business activities and is physically inseparable.
The land and building tax of other sectors that cover waters are:
a. capture fisheries;
b. fish cultivation;
c. pipeline network;
d. cable network;
e. toll roads; or
f. storage and processing facilities, include floating storage and offloading (FSO), floating production system (FPS), floating processing unit (FPU), floating storage unit (FSU), floating production storage and offloading (FPSO), and floating storage regasification unit (FSRU).
- The goods are purchased using funds from the state budget (Anggaran Pendapatan dan Belanja Negara or APBN) or local budget (Anggaran Pendapatan dan Belanja Daerah or APBD); and/or
- Received from grant.
- Importation through bonded storage, special economic zone, or free zone;
- handover of imported goods which are exempted from import duty from the recipient of import duty exemption; or
- settlement of temporarily imported goods through grant to the central government.
- Non-collection of VAT and sales tax on luxury goods; and/or
- Exempted from collection of Article 22 withholding income tax.
In order to enjoy the facility of import duty exemption, the central government, local government or third party shall submit an application to the Minister of Finance (MoF) through the Head of Customs and Excise Regional Office or Head of Customs and Excise Primary Service Office.
This MoF regulation became effective 30 (thirty) days after its enactment date, which was November 25 2019.
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