COPY REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA NUMBER 224/PMK.011/2012 CONCERNING AMENDMENT TO REGULATION OF THE MINISTER OF FINANCE NUMBER 154/PMK.03/2010 CONCERNING COLLECTION OF INCOME TAX IN CONNECTION WITH ARTICLE 22 IN RELATION TO PAYMENT FOR DELIVERY OF GOODS AND ACTIVITIES IN THE FIELD OF IMPORTS OR OTHER BUSINESS ACTIVITIES BY THE GRACE OF GOD ALMIGHTY THE MINISTER OF FINANCE, Considering : a. whereas the provisions on the appointment of certain entities as the collectors of Income Tax Article 22 have been set in Regulation of the Minister of Finance No. 154/PMK.03/2010 concerning Collection of Income Tax Article 22 in relation to the payment and delivery of goods or activities in the Field of Import or Other Business Activities; b. whereas to further enhance public participation in the collection of funds through tax payment system and for the purpose of simplicity, convenience, and imposition of taxes on time, and to harmonize the provisions of Income Tax Article 22 with Value Added Tax provisions, it is necessary to make adjustments to the provisions referred to in letter a; c. whereas based on the considerations referred to in paragraphs a, and b, as well as to implement the provisions of Article 22 paragraph (1) points a, b, and paragraph (2) of Law Number 7 of 1983 concerning Income Tax as it has been amended with Law No. 36 of 2008, it is necessary to stipulate Regulation of the Minister of Finance concerning Amendment to the Regulation of the Minister of Finance No. 154/PMK.03/2010 concerning Collection of Income Tax Article 22 in relation to the payment and delivery of goods or activities in The Field of Import or Other Field; In View of : 1. Law Number 7 of 1983 concerning Income Tax (State Gazette of the Republic of Indonesia Year 1983 Number 50, Supplement to the State
- 2 - Gazette of the Republic of Indonesia Number 3263) as amended by Law No. 36 Year 2008 (State Gazette of the Republic of Indonesia Year 2008 Number 133, Supplement to the State Gazette of the Republic of Indonesia Number 4893); 2. Regulation of the Minister of Finance No. 154/PMK.03/2010 concerning Income Tax Article 22 In Relation to Payment for Delivery of Goods and Activities in the Field of Import or Other Business Activities; BE IT HEREBY RESOLVED: To enacted : REGULATION OF THE MINISTER OF FINANCE CONCERNING AMENDMENT TO REGULATION OF THE MINISTER OF FINANCE NUMBER 154/PMK.03/2010 ON THE COLLECTION OF INCOME TAX ARTICLE 22 IN CONNECTION WITH PAYMENTS FOR DELIVERY OF GOODS AND ACTIVITIES IN THE FIELD OF IMPORT OR OTHER BUSINESS ACTIVITIES Article I Several provisions in Regulation of the Minister of Finance No. 154/PMK.03/2010 Concerning Collection of Income Tax Article 22 in Connection With Payment for Delivery of Goods and Activities in the Field of Import or Other Business Activities shall be amended as follows: 1. The provisions of Article 1 shall be amended, thus becoming three (3) paragraphs, namely paragraph (1), paragraph (2), and paragraph (3), so that Article 1 reads as follows Article 1 (1) The tax collector as defined in Article 22 of Law Number 7 of 1983 concerning Income Tax as it has been amended with Law No. 36 of 2008, shall be : a. Exchange Bank and the Directorate General of Customs and Excise on the import of goods; b. government treasury and Budget User Authority (KPA) as a tax collector in Central Government, Local Government, Institution or Government agencies and other state agencies, with respect to the payment for the purchase of goods; c. expenses treasurer with respect to the payment for the purchase of goods done with the mechanism of money supply (UP);
- 3 - d. Budget User Authority (KPA) or the official issuing the Payment Order given by the delegation of the Budget User Authority (KPA), with respect to the payment for the purchase of goods to third parties through the mechanism of direct payment (LS) e. State Owned Enterprises namely business entities wholly or largely owned by state capital through direct investment from separated state assets, which include: 1. PT Pertamina (Persero), PT PLN (Persero), PT Perusahaan Gas Negara (Persero) Tbk., PT Telekomunikasi Indonesia (Persero) Tbk., PT Garuda Indonesia (Persero) Tbk., PT Pembangunan Perumahan (Persero) Tbk., PT Wijaya Karya (Persero) Tbk., PT Adhi Karya (Persero) Tbk., PT Huatama Karya (Persero), PT Krakatau Steel (Persero), and 2. Banks that are state-owned enterprises with respect to the payment for the purchase of goods and/ or materials for the purposes of its business activities. f. Business entities engaged in the cement industry, paper industry, steel industry, automotive industry and pharmaceutical industry, and sale of their products to distributors in the country; g. Sole agent (ATPM), Licensee Agent (APM), and general importer of motor vehicles for the sales of motor vehicles in the country; h. Manufacturers or importers of fuel oil, fuel gas, and lubricants, on the sale of fuel oil, fuel gas, and lubricants; i. Manufacturers and exporters engaged in the forestry, plantation, agriculture, livestock and fisheries industries, purchase of materials from collectors for industrial or export purposes. (2) Business companies engaged in the steel industry as referred to in paragraph (1) point f, namely the steel industry which is an upstream industry, including upstream industry integrated with the intermediary industry and downstream industries. (3) The Collectors referred to in paragraph (1) point i, shall be entities or individuals whose business activities are: a. To collect the forestry, plantation, agriculture, livestock and fisheries products, and b. To sell the products to the industrial enterprises and exporters engaged in the forestry, plantation, agriculture, livestock and fisheries. 2. The provisions of Article 2 paragraph (1) shall be amended so that Article 2 shall read as follows: Article 2 (1) The amount of Income Tax under Article 22 shall be as follows : a. On Imports :
- 4-1. using Import Identity Number (API), 2.5% (two and a half percent) of the value of imports, except for the import of soybeans, wheat, and wheat flour, at 0.5 % (half percent) of the value of imports; 2. that do not use Import Identity Number (API), 7.5 % (seven and a half percent) of the value of imports, and / or 3. that is not controlled, 7.5 % (seven and a half percent) of the sales price of auction. b. For the purchase of goods as referred to in Article 1, paragraph (1) point b, point c, point d, and the purchase of goods and/ or materials for the purposes of business activity as referred to in Article 1, paragraph (1) point e, of 1.5 % (one half percent) of the purchase price shall not include vaue added tax. c. On the sale of fuel oil, gas fuel and lubricants by the manufacturer or importer of fuel oil, fuel gas, and lubricants shall be as follows : 1. oil fuel by : a) 0.25 % (zero point twenty five percent) of sales excluding vaue added tax for sales to the public refueling stations of Pertamina; b) 0.3 % (zero point three percent) of sales excluding vaue added tax for sales to the non-public refueling stations of Pertamina; c) 0.3 % (zero point three percent) of sales excluding vaue added tax for sales to parties other than as referred to in letter a) and b). 2. fuel gas at 0.3 % (zero point three percent) of sales excluding value added tax; 3. lubricants at 0.3 % (zero point three percent) of sales excluding value added tax. d. On the sale of products to distributors at home by a business entity engaged in the cement industry, paper industry, the steel industry, automotive industry and pharmaceutical industry : 1. sales of all types of cement at 0.25 % (zero point twenty five percent); 2. paper sales at 0.1 % (zero point one per cent); 3. steel sales at 0.3 % (zero point three percent); 4. sales of all types of two-wheeled motor vehicles or more at 0.45 % (zero point forty five percent); 5. sales of all types of drugs at 0.3 % (zero point three percent), of Value Added Tax bases. e. On the sale of motor vehicles at home by the Sole Agent (ATPM), Licensee Agent (APM), and general importer of motor vehicles reached 0.45 % (zero point forty- five percent) of the Value Added Tax bases.
- 5 - f. For the purchase of materials for industrial use or export by industrial enterprises or exporters engaged in the forestry, plantation, agriculture, livestock and fisheries series, at 0.25 % (zero point twenty-five percent) of the purchase price excluding Value Added Tax. (2) The value of imports, as referred to in paragraph (1) point a number 1 and number 2, shall be the value of money becoming the basis for calculating import duty that shall be the Cost Insurance and Freight (CIF) plus duty and other levies imposed under the provisions of laws customs and regulations in the field of import. (3) The rate of collection as described in paragraph (1) applied to taxpayers who do not have a Taxpayer Identification Number shall be higher 100 % (one hundred percent) than the rate applicable to the taxpayer who can show their Taxpayer Identification Number. (4) The provisions referred to in paragraph (3) shall apply to the collection of income tax under Article 22, which shall not be final. 3. The provisions of Article 3 shall be amended to read as follows : Article 3 (1) Excluded from the collection of Income Tax Article 22 : a. Imports of goods and/ or delivery of goods under the provisions of the legislation where income tax is not mandatory; b. Imported goods exempted from Customs Duty and/ or Value Added Tax : 1. Belongings of representatives of foreign countries and their officials who serve in Indonesia based on the principle of reciprocity; 2. Goods for the purposes of international agencies and their officers who serve in Indonesia and do not hold Indonesian passports recognized and listed in the regulations of the minister of finance governing the procedures for granting exemption of import duty and excise duty on the import of goods for the purposes of international bodies and their officials assigned in Indonesia; 3. gift/ grant for the purposes of public worship, charity, social, cultural or for the benefit of disaster management; 4. goods for the purposes of museums, zoos, nature conservation and other such places open to the public; 5. goods for the purposes of scientific research and development; 6. goods for special purposes of the blind and other disabled people; 7. container or other packaging containing bodies or ashes; 8. personal effects;
- 6-9. personal belongings of passengers, crew transportation facilities, border crossers, and the shipment of goods to a certain amount in accordance with the provisions of customs legislation; 10. goods imported by the Central Government or a Local Government in the public interest; 11. arms, ammunition, and military equipment, including spare parts shall be intended for purposes of national defense and security; 12. goods and materials used to produce goods for the purposes of national defense and security; 13. Polio vaccine program for the implementation of National Immunization Week (PIN); 14. common text books, scriptures and religious textbooks; 15. ships, river transport, ship transport lakes, boat ferry transport, scout ships, tugs, fishing vessels, barges, and spare parts as well as safety of navigation tool or instrument of human salvation imported and used by the Company or the Company's National Commercial Shipping National Fishing, National Corporate Service Provider port affairs or Company Service Providers Transportation River, Lake and Ferry National, in accordance with its business activities; 16. aircraft and spare parts as well as safety equipment or safety devices of human flight, repair or maintenance of equipment for imported and used by the National Commercial Air Transport Company and spare parts and equipment for the repair or maintenance of aircraft imported by a party designated by the Air Transport Company National commercial and used in the provision of maintenance services or repairs aircraft to the national commercial Air Transport Company; 17. train and spare parts and equipment for the repair or maintenance of infrastructure as well as imported and used by PT Kereta Api Indonesia (Persero), and components or materials imported by a party designated by PT Kereta Api Indonesia (Persero), which shall be used for the manufacture of train fire, spare parts, equipment for repair or maintenance, as well as the infrastructure that will be used by PT Kereta Api Indonesia (Persero); 18. equipment and spare parts used by the Ministry of Defense or the military for the provision of data of borders and aerial photography within the territory of the Republic of Indonesia to support the national defense, which shall be imported by the Ministry of Defense, military or party appointed by the Ministry of Defense or military, and / or
- 7-19. goods for the upstream oil and gas importation shall be done by Production Sharing Contract. c. Temporary Imports, if at the time of its imports are obviously intended for re-export; d. Re-import, which include items that had been exported then reimported in the same or quality of the goods that have been exported for repair, and testing, which has met the requirements set by the Directorate General of Customs and Excise; e. Payments made by the tax collector as defined in Article 1, paragraph (1) point b, point c, point d, and point e, with respect to : 1. payments made by the tax collector as defined in Article 1, paragraph (1) point b, point c, andpoint d maximally in the amount of Rp 2,000,000.00 (two million rupiah) and not a fragmented payment; 2. payments made by the tax collector as defined in Article 1, paragraph (1) point e maximally in the amount of 10,000,000.00 (ten million rupiah) and not a fragmented payment 3. payment for : a) the purchase of fuel oil, fuel gas, lubricants, postage; b) the use of water and electricity. f. Gold bullion to be processed to produce jewelry of gold for export purposes; g. Payments for purchase of goods in connection with the use of school operational funds (BOS). (2) Exemption from the collection of Income Tax Article 22 on imported goods as referred to in paragraph (1) letter b shall apply in case the imported goods are subject to import duty rate of 0% (zero percent). (3) The exception as referred to in paragraph (1) points a and f shall be state by an Income Article 22 Tax Exemption Certificate issued by the Director General of Taxes. (4) The exception referred to in paragraph (1) point d, point e, and point g shall be done without Exemption Certificate (SKB). (5) The provisions referred to in paragraph (1) point b and c, and paragraph (2) shall be conducted by the Directorate General of Customs and Excise of procedures set by the Director General of Customs and Excise and/ or the Director General of Taxes. 4. The provisions of Article 4 paragraph (2), paragraph (3), paragraph (4), paragraph (5) and (6) shall be amended so that Article 4 shall read as follows: Article 4 (1) Income Tax Article 22 on the import of goods shall be due and payable simultaneously with the payment of import duty. (2) In case the payment of Import Duty is delayed or exempted and not included in the collection of exemption of Income Tax Article 22 as
- 8 - referred to in Article 3 paragraph (1) point b, Income Tax Article 22 shall be due and payable on the completion of the import customs declaration documents. (3) The Income Tax Article 22 on the purchase of goods as referred to in Article 1, paragraph (1) point b, point c, point d, and the purchase of goods and / or materials for the purposes of business activity as referred to in Article 1 (1) point e shall be payable and collected at the time of payment. (4) Income Tax Article 22 on the sale of products as referred to in Article 1, paragraph (1) point f and sales of motor vehicles as referred to in Article 1, paragraph (1) point g shall be payable and collected at the time of sale. (5) Income Tax Article 22 on the sale of oil fuel, gas fuel, and lubricants as referred to in Article 1, paragraph (1) point h shall be due and collected at the time of issuance of delivery order. (6) Income Tax Article 22 on the purchase of materials from traders as referred to in Article 1, paragraph (1) point i shall be payable and collected at the time of purchase. 5. The provisions of Article 5, paragraph (2) and (3) shall be amended so that Article 5 shall read as follows : Article 5 (1) The collection of Income Tax Article 22 on the import of goods may be carried out by way of deposit by : a. The importers concerned, or b. The Directorate General of Customs and Excise, to the state treasury through the Post Office, foreign banks, or banks designated by the Minister of Finance. (2) The collection of Income Tax Article 22 by the tax collector as defined in Article 1, paragraph (1) point b, point c, and point d, should be paid by the collector to the state treasury through the Post Office, foreign bank, or a bank designated by the Minister finance, by using the Tax Payment Slip that has been filled on behalf of the partners and signed by the tax collector. (3) The collection of Income Tax Article 22 by the tax collector as defined in Article 1, paragraph (1) point e, point f, point g, point h, and point i, must be paid by the collector to the state treasury through the Post Office, commercial banks, or a bank designated by the Minister of Finance by using the Tax Payment. 6. The provisions of Article 6 shall be amended to read as follows : Article 6 (1) The Payment of Income Tax Article 22 by the importer, the Directorate General of Customs and Excise and the tax collector as defined in
- 9 - Article 1, paragraph (1) point b, point c, and point d shall be done by using the Tax Payment forms accepted as Proof of Tax Collection. (2) The tax collector as defined in Article 1, paragraph (1) letter e, point f, point g, point h, and the letter i, must issue a Proof of Income Tax Article 22 Collection in 3 (three) copies, namely : a. The first sheet to the taxpayer collector; b. The second sheet as an attachment for the monthly reports to the tax office (attached to the Notice Period of Income Tax Article 22), and c. The third sheet as the records of the tax collector. 7. Provisions of Article 7 shall be amended to read as follows : Article 7 The Directorate General of Customs and Excise and the tax collector as defined in Article 1, paragraph (1) point b, point c, point d, point e, point f, point g, point h, and point i shall report the results of the collection by using the period Notice to the Tax Office. 8. The provisions of Article 9 amended to read as follows : Article 9 (1) The Collection of Income Tax Article 22 as referred to in Article 1, paragraph (1) point a, point b, point c, point d, point e, point f, point g, and point i shall be not final and can be considered as payment of income tax in the current year for taxpayers levied. (2) The Income Tax Collection Article 22 as referred to in Article 1, paragraph (1) point h on sales to : a. dealer/ agent shall be final; b. in addition to distributors/ agents shall be not final Article II This Ministerial Regulation shall come into force after 60 (sixty) days from its date of promulgation. For public cognizance, it is ordered to promulgate this Ministerial Regulation by announcing it in the Official Gazette of the Republic of Indonesia. Stipulated in Jakarta on December 26, 2012 THE MINISTER OF FINANCE,
- 10 - Promulgated in Jakarta on December 26, 2012 Signed AGUS DW MARTOWARDOJO THE MINISTER OF JUSTICE AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA Signed AMIR SYAMSUDIN OFFICIAL GAZETTE YEAR 2012 NUMBER 1319