ProdukHukum Perdagangan
DECREE OF THE MINISTER OF FINANCE
NO. 583/KMK.03/2003
DATED DECEMBER 31, 2003
ON
TREATMENT OF VALUE ADDED TAX AND SALES TAX ON LUXURY
GOODS IN THE BONDED ZONE OF THE BATAM ISLAND INDUSTRIAL
AREA
THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
Considering:
That, in the framework of the implementation of Article 7 of Government Regulation
No. 63/2003 on Treatment of Value Added Tax and Sales Tax on Luxury Goods in the
Bonded Zone of the Batam Island Industrial Area, it is necessary to stipulate a Decree of
the said minister regarding Treatment of Value Added Tax and Sales Tax on Luxury
Goods in the Bonded Zone of the Batam Island Industrial Area.
In View of:
1. Law No. 6/1983 on General Provision and Procedure of Taxation (Statute Book
of 1983 No. 49, Supplement to Statute Book No. 3262) as amended several times
and latest by Law No.16/2000 (Statute Book of 2000 No. 126, Supplement to
Statute Book No. 3986);
2. Law No. 8/1983 on Value Added Tax on Goods and Services and Sales Tax on
Luxury Goods (Statute Book of 1983 No. 51, Supplement to Statute Book No.
3264) as amended several times and latest by Law No. 18/2000 (statute Book of
2000 No. 259, Supplement to Statute Book No. 3986);
3. Government Regulation No. 63/2003 on Implementation of Law No. 8/1983 on
Value Added Tax on Goods and Services ad Sales Tax Luxury Goods as
amended several times and latest by Law No. 18/2000 (Statute Book of 2000 No.
259, Supplement to Statute Book No. 3986);
4. Government Regulation No. 63/2003 on Treatment of Value Added Tax and
Sales Tax on Luxury Goods in The Bonded Zone of the Batam Island Industrial
Area (Statute Book of 2003 No. 158, Supplement to Statute Book No. 4352);
5. Presidential Decree No. 228/2001
D E C I D E S:
To stipulate:
DECREE OF THE SAID MINISTER OF TREATMENT OF VALUE ADDED TAX
ON LUXURY GOODS IN THE BONDED ZONE OF THE MATAM ISLAND
INDUSTRIAL AREA.
Article 1
In this Decree, the meaning of:
1. Bonded Zone of Batam Island Industrial Area is Batam Island Industrial Area
and the surrounding island which are declared as Bonded Zone in accordance
with the laws in force.
2. entrepreneur is a taxable entrepreneur of the Bonded Zone of the Batam Industrial
Area who produces taxable goods for export.
Article 2
Value Added Tax and Sales Tax on Luxury Goods are not imposed on:
a. Delivery of taxable goods as the following:
1) Delivery of taxable goods between Entrepreneurs;
2) Delivery of taxable goods from taxable entrepreneur in the customs area
outside the Bonded Zone of the Batam Island Industrial Area to
Entrepreneur.
b. Import of taxable goods by Entrepreneur as far as such goods are used to produce
taxable goods for export;
Article 3
(1) Taxable entrepreneur who makes delivery of taxable goods, as set forth in Article
2 paragraph a, must issue a tax invoice completed with the seal “ Value Added
Tax on Luxury Goods Uncollectible in accordance with Government Regulation
No. 63/2003”.
(2) For import of taxable goods, as set forth in Article 2 paragraph b, the Director
General of Customs and Excise shall put the seal “Value Added Tax on Luxury
Goods Uncollectible in accordance with Government Regulation No. 63/2003”
on each sheet of the Notification of Import upon settlement of import manifest.
Article 4
In the case that the taxable goods, as set forth in Article 2, are not used to produce
taxable goods for export, uncollectible Value Tax on Sales Tax on Luxury Goods must
be re-paid in addition to sanctions in accordance with the applicable rulings.
Article 5
Any rulings required in the framework of the implementation of this Decree will be
further stipulated in the decision of the Director General of Taxation and the Director
General of Customs and Excise, either individually or collectively.
Article 6
Upon enforceability of this Decree:
1. Decree of the said minister No. 47/KMK.01/1987 on Collection of Value Added
Tax and Sales Tax on Luxury Goods for the Export/Import/Delivery of the Taxable
Goods or Services from/to/into the Bonded Zone of the Batam Island Industrial
Area and the Surrounding Islands Which Are Declared As Bonded Zone as
amended by Decree of the said minister No. 548/KMK.04/1994;
2. Decree of the said minister No. 192/KMK.04/1998 on Enforcement of Government
Regulation No.39/1998 on Treatment of Value Added Tax on Luxury Goods In
The Bonded Zone of the Batam Island Industrial Area.
Article 7
This Decree comes into effect from January 1, 2004.
For public cognizance, this Decree shall be announced bey placing it in the State Gazette
of the Republic of Indonesia.
Stipulated in Jakarta
On December 31, 2003
THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
BOEDIONO
NO. 583/KMK.03/2003
DATED DECEMBER 31, 2003
ON
TREATMENT OF VALUE ADDED TAX AND SALES TAX ON LUXURY
GOODS IN THE BONDED ZONE OF THE BATAM ISLAND INDUSTRIAL
AREA
THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
Considering:
That, in the framework of the implementation of Article 7 of Government Regulation
No. 63/2003 on Treatment of Value Added Tax and Sales Tax on Luxury Goods in the
Bonded Zone of the Batam Island Industrial Area, it is necessary to stipulate a Decree of
the said minister regarding Treatment of Value Added Tax and Sales Tax on Luxury
Goods in the Bonded Zone of the Batam Island Industrial Area.
In View of:
1. Law No. 6/1983 on General Provision and Procedure of Taxation (Statute Book
of 1983 No. 49, Supplement to Statute Book No. 3262) as amended several times
and latest by Law No.16/2000 (Statute Book of 2000 No. 126, Supplement to
Statute Book No. 3986);
2. Law No. 8/1983 on Value Added Tax on Goods and Services and Sales Tax on
Luxury Goods (Statute Book of 1983 No. 51, Supplement to Statute Book No.
3264) as amended several times and latest by Law No. 18/2000 (statute Book of
2000 No. 259, Supplement to Statute Book No. 3986);
3. Government Regulation No. 63/2003 on Implementation of Law No. 8/1983 on
Value Added Tax on Goods and Services ad Sales Tax Luxury Goods as
amended several times and latest by Law No. 18/2000 (Statute Book of 2000 No.
259, Supplement to Statute Book No. 3986);
4. Government Regulation No. 63/2003 on Treatment of Value Added Tax and
Sales Tax on Luxury Goods in The Bonded Zone of the Batam Island Industrial
Area (Statute Book of 2003 No. 158, Supplement to Statute Book No. 4352);
5. Presidential Decree No. 228/2001
D E C I D E S:
To stipulate:
DECREE OF THE SAID MINISTER OF TREATMENT OF VALUE ADDED TAX
ON LUXURY GOODS IN THE BONDED ZONE OF THE MATAM ISLAND
INDUSTRIAL AREA.
Article 1
In this Decree, the meaning of:
1. Bonded Zone of Batam Island Industrial Area is Batam Island Industrial Area
and the surrounding island which are declared as Bonded Zone in accordance
with the laws in force.
2. entrepreneur is a taxable entrepreneur of the Bonded Zone of the Batam Industrial
Area who produces taxable goods for export.
Article 2
Value Added Tax and Sales Tax on Luxury Goods are not imposed on:
a. Delivery of taxable goods as the following:
1) Delivery of taxable goods between Entrepreneurs;
2) Delivery of taxable goods from taxable entrepreneur in the customs area
outside the Bonded Zone of the Batam Island Industrial Area to
Entrepreneur.
b. Import of taxable goods by Entrepreneur as far as such goods are used to produce
taxable goods for export;
Article 3
(1) Taxable entrepreneur who makes delivery of taxable goods, as set forth in Article
2 paragraph a, must issue a tax invoice completed with the seal “ Value Added
Tax on Luxury Goods Uncollectible in accordance with Government Regulation
No. 63/2003”.
(2) For import of taxable goods, as set forth in Article 2 paragraph b, the Director
General of Customs and Excise shall put the seal “Value Added Tax on Luxury
Goods Uncollectible in accordance with Government Regulation No. 63/2003”
on each sheet of the Notification of Import upon settlement of import manifest.
Article 4
In the case that the taxable goods, as set forth in Article 2, are not used to produce
taxable goods for export, uncollectible Value Tax on Sales Tax on Luxury Goods must
be re-paid in addition to sanctions in accordance with the applicable rulings.
Article 5
Any rulings required in the framework of the implementation of this Decree will be
further stipulated in the decision of the Director General of Taxation and the Director
General of Customs and Excise, either individually or collectively.
Article 6
Upon enforceability of this Decree:
1. Decree of the said minister No. 47/KMK.01/1987 on Collection of Value Added
Tax and Sales Tax on Luxury Goods for the Export/Import/Delivery of the Taxable
Goods or Services from/to/into the Bonded Zone of the Batam Island Industrial
Area and the Surrounding Islands Which Are Declared As Bonded Zone as
amended by Decree of the said minister No. 548/KMK.04/1994;
2. Decree of the said minister No. 192/KMK.04/1998 on Enforcement of Government
Regulation No.39/1998 on Treatment of Value Added Tax on Luxury Goods In
The Bonded Zone of the Batam Island Industrial Area.
Article 7
This Decree comes into effect from January 1, 2004.
For public cognizance, this Decree shall be announced bey placing it in the State Gazette
of the Republic of Indonesia.
Stipulated in Jakarta
On December 31, 2003
THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
BOEDIONO