ProdukHukum Perdagangan
GOVERNMENT REGULATION
NOMOR 63/2003 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
PRESIDENT OF THE REPUBLIX OF INDONESIA
Considering:
a. that, in the framework of encouraging of export, which is the priority in the Bonded
Zone of the Batam Island Industrial Area, Tax Facilities have to be granted in
accordance with the provision of Article 16B of Law No. 8/1983 on Value Added
and Sales Tax on Luxury Goods as amended several times and latest by Law No.
18/2000;
b. that, to maintain the investment climate in the Bonded Zone of the Batam Island
Industrial Area to be still conducible, imposition of Value Added Tax and Sales
Tax on Luxury Goods needs to be ruled gradually;
c. that, in relation to the considerations set forth in paragraphs a and b, it is necessary
to stipulated a Government Regulation on 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. Article 5 paragraph (2) of 1945 Constitution as amended by Fourth Amendement to
the 1945 Constitution;
2. Law No. 6/1983 on General Provisions 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. 3984);
3. Law No. 8/1983 on Value Added Tax 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. 128, Supplement
to Statute Book No. 3986).
DECIDES:
To stipulate:
GOVERNMENT REGULATION ON TREATMENT OF VALUE ADDED TAX
AND SALES TAX ON LUXURY GOODS IN THE BONDED ZONE OF THE
BATAM ISLAND INDUSTRIAL AREA
Article 1
In this Government Regulation, the meaning of:
1. Bonded Zone of Batam Island Industrial Area is Batam Island Island Area and the
surround islands which are declared as Bonded Zone in accordance with the laws in
force.
2. Entrepeneur is a taxable entrepreneur of the Bonded Zone of the Batam Island
Industrial Area who produces taxable goods for export.
Article 2
In the framework of supporting of export, Value Added Tax and Sales Tax on Luxury
Goods are not imposed on:
a. Delivery of taxable goods to entrepreneur as far as such goods are not used to
produce taxable goods for export;
b. Import of taxable goods by Entrepreneur as far as such goods are not used to produce
taxable goods for export.
Article 3
The delivery of taxable goods and/or import of taxable goods other than those specified
in Article 2, and, the delivery of taxable services from/to/into the Bonded Zone of the
Batam Island Industrial Area, are subject to Value Added Tax and Sales Tax on Luxury
Goods, which imposition shall be conducted gradually.
Article 4
The imposition of Value Added Tax and/or Sales Tax on Luxury Goods, as set forth in
Article 3, shall be conducted in accordance with the following conditions:
1. First stage, starting from January 1, 2004, Value Added Tax and/or sales Tax on
Luxury Goods are imposed on import and/or delivery of taxable goods that are in the
form of:
a. Motorized vehicles with two (2) or more wheels;
b. Cigarettes and other products of tobacco; and
c. Alcoholic drinks.
2. Second stage, starting from March 1, 2004, Value Added Tax and/or Sales Tax on
Luxury Goods on Import and/or delivery of taxable goods that are in the from of
electronic goods, i.e. all types of electronic goods using battery or electronic power.
3. The next stage, stipulation of types of taxable goods and/or services being imposed
by Value Added Tax and/or Sales Tax on Luxury Goods other than the taxable goods
set forth in paragraph 1 and 2, shall be done in accordance with Decree of the
Minister of Finance, within six (6) months, at the latest.
Article 5
The utilization of taxable intangible goods from outside customs area in the Bonded
Zone of the Batam Island Industrial Area and/or utilization of taxable services from
outside customs are ain the Bonded Zone of the Batam Island Industrial Area, are subject
to Value Added Tax.
Article 6
Provisions regarding enforcement of Article 16B of Law No. 8/1983 on Value Added
Tax on Goods and Services and Sales Tax on Luxury Goods as amended several times
and latest by Law No. 18/2000, other than those stipulated in this regulation, shall be
declared inapplicable.
Article 7
Further provision required for the enforcement of this Government Regulation will be
stipulated in a Decree of the Minister of Finance.
Article 8
Upon enforceability of this regulation, Government Regulation No. 39/1998 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 1998 No. 54, Supplement to Statute
Book No. 3748) shall be declared inapplicable.
Article 9
This regulation comes into effect from January 1, 2004.
For public cognizance, this decree shall be enacted by placing it in the Statute Book of
the Republic of Indonesia.
Stipulated in Jakarta
On December 31, 2003
PRESIDEN OF THE REPUBLIC OF INDONESIA
MEGAWATI SOEKARNOPUTRI
Enacted in Jakarta
On December 31, 2003
STATE SECRETARY OF THE REPUBLIC OF INDONESIA
BAMBANG KESOWO
STATUTE BOOK OF
THE REPUBLIC OF INDONESIA OF 2003 NO. 158
ELUCIDATION
OF
GOVERNEMENT REGULATION
NO. 63/2003
ON
VALUE ADDED TAX AND SALES TAX ON
LUXURY GOODS IN THE BONDED ZONE OF
THE BATAM ISLAND INDUSTRIAL AREA
GENERAL
Pursuant to Law No. 8/1983 on Value Added Tax on Goods and Services and sales Tax
on Luxury Goods as amended several times and latest by Law No. 18/2000, Value
Added Tax and Sales Tax on Luxury Goods are, principally, being imposed in the
Bonded Zone of the Batam Island Industrial Area. Nevertheless, considering that the
condition of the society in the Bonded Zone of the Batam Island Industrial Area and in
the framework of providing of legal certainty and justice, the imposition of Value Added
Tax and SALES Tax on Luxury Goods need to be enforced gradually through a
transitory period, and by the stipulation of special rulings for businesses that produce
taxable goods for export as high-priority economic activities.
This regulation, principally, stipulates some maters as the following:
a. Stipulation of certain goods and services that will be imposed on the first stage
(starting from January 1, 2004) and the second stage (starting from March 1, 2004)
to be imposed by Value Added Tax and/or Sales Tax on Luxury Goods.
b. Stipulation of other types of goods and services that will be imposed by Value
Added Tax and/or sales Tax on Luxury Goods gradually, which will be set forth in a
Decree of the Minister of Finance for a period of six (6) months, at the latest,
considering the types of basic necessities to be imposed on the latter stages.
c. Granting of facilities for import and/or delivery of goods, which are used to produce
taxable goods for export, which, mainly, has the purpose to encourage the business
world, which, finally, will be beneficial for the society, in-general.
ARTICLE BY ARTICLE
Articles 1-5:
Self-explanatory.
Article 6
Other than the facilities in the form of Value Added Tax and Sales Tax Luxury Goods, as
set forth in Article 2, the Taxable Entrepreneurs in the Bonded Zone of the Batam, Island
Industrial Area are also granted with tax facilities applicable pursuant to the enforcement
rulings of article 16B Law No. 8/1983 on Value Added Tax on Goods and Services and
Sales Tax on Luxury Goods as amended several times and latest by Law No. 18/2000,
amongst others, as follows:
1.
2.
3.
4.
Government Regulation No. 42/1995 on Import Duty, Additional Import Duty,
Values Added Tax and Sales Tax on Luxury Goods, and Income Tax In The
Framework of Implementation of Government’s Projects Funded with Grant or
Offshore Loan Funds as amended several times and latest by Government
Regulation No. 25/2001;
Government Regulation No. 33/1996 on Bonded Hoarding Zone as amended by
Government Regulation No. 43/1997;
Government Regulation No. 145/2000 on Import and/or Delivery of Certain
Taxable Goods and/or delivery of Certain Taxable Services, Which Are Exempted
from Value Added Tax amended by Government Regulation No. 38/2003.
Government Regulation No. 12/2001 on Import and/or delivery of Certain Strategic
Taxable Goods as amended several times and latest by Government Regulation No.
46/2003.
Article 7-9
Self-explanatory.
SUPPLEMENT TO STATUTE BOOK OF
THE REPUBLIC OF INDONESIA NO. 4352
NOMOR 63/2003 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
PRESIDENT OF THE REPUBLIX OF INDONESIA
Considering:
a. that, in the framework of encouraging of export, which is the priority in the Bonded
Zone of the Batam Island Industrial Area, Tax Facilities have to be granted in
accordance with the provision of Article 16B of Law No. 8/1983 on Value Added
and Sales Tax on Luxury Goods as amended several times and latest by Law No.
18/2000;
b. that, to maintain the investment climate in the Bonded Zone of the Batam Island
Industrial Area to be still conducible, imposition of Value Added Tax and Sales
Tax on Luxury Goods needs to be ruled gradually;
c. that, in relation to the considerations set forth in paragraphs a and b, it is necessary
to stipulated a Government Regulation on 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. Article 5 paragraph (2) of 1945 Constitution as amended by Fourth Amendement to
the 1945 Constitution;
2. Law No. 6/1983 on General Provisions 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. 3984);
3. Law No. 8/1983 on Value Added Tax 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. 128, Supplement
to Statute Book No. 3986).
DECIDES:
To stipulate:
GOVERNMENT REGULATION ON TREATMENT OF VALUE ADDED TAX
AND SALES TAX ON LUXURY GOODS IN THE BONDED ZONE OF THE
BATAM ISLAND INDUSTRIAL AREA
Article 1
In this Government Regulation, the meaning of:
1. Bonded Zone of Batam Island Industrial Area is Batam Island Island Area and the
surround islands which are declared as Bonded Zone in accordance with the laws in
force.
2. Entrepeneur is a taxable entrepreneur of the Bonded Zone of the Batam Island
Industrial Area who produces taxable goods for export.
Article 2
In the framework of supporting of export, Value Added Tax and Sales Tax on Luxury
Goods are not imposed on:
a. Delivery of taxable goods to entrepreneur as far as such goods are not used to
produce taxable goods for export;
b. Import of taxable goods by Entrepreneur as far as such goods are not used to produce
taxable goods for export.
Article 3
The delivery of taxable goods and/or import of taxable goods other than those specified
in Article 2, and, the delivery of taxable services from/to/into the Bonded Zone of the
Batam Island Industrial Area, are subject to Value Added Tax and Sales Tax on Luxury
Goods, which imposition shall be conducted gradually.
Article 4
The imposition of Value Added Tax and/or Sales Tax on Luxury Goods, as set forth in
Article 3, shall be conducted in accordance with the following conditions:
1. First stage, starting from January 1, 2004, Value Added Tax and/or sales Tax on
Luxury Goods are imposed on import and/or delivery of taxable goods that are in the
form of:
a. Motorized vehicles with two (2) or more wheels;
b. Cigarettes and other products of tobacco; and
c. Alcoholic drinks.
2. Second stage, starting from March 1, 2004, Value Added Tax and/or Sales Tax on
Luxury Goods on Import and/or delivery of taxable goods that are in the from of
electronic goods, i.e. all types of electronic goods using battery or electronic power.
3. The next stage, stipulation of types of taxable goods and/or services being imposed
by Value Added Tax and/or Sales Tax on Luxury Goods other than the taxable goods
set forth in paragraph 1 and 2, shall be done in accordance with Decree of the
Minister of Finance, within six (6) months, at the latest.
Article 5
The utilization of taxable intangible goods from outside customs area in the Bonded
Zone of the Batam Island Industrial Area and/or utilization of taxable services from
outside customs are ain the Bonded Zone of the Batam Island Industrial Area, are subject
to Value Added Tax.
Article 6
Provisions regarding enforcement of Article 16B of Law No. 8/1983 on Value Added
Tax on Goods and Services and Sales Tax on Luxury Goods as amended several times
and latest by Law No. 18/2000, other than those stipulated in this regulation, shall be
declared inapplicable.
Article 7
Further provision required for the enforcement of this Government Regulation will be
stipulated in a Decree of the Minister of Finance.
Article 8
Upon enforceability of this regulation, Government Regulation No. 39/1998 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 1998 No. 54, Supplement to Statute
Book No. 3748) shall be declared inapplicable.
Article 9
This regulation comes into effect from January 1, 2004.
For public cognizance, this decree shall be enacted by placing it in the Statute Book of
the Republic of Indonesia.
Stipulated in Jakarta
On December 31, 2003
PRESIDEN OF THE REPUBLIC OF INDONESIA
MEGAWATI SOEKARNOPUTRI
Enacted in Jakarta
On December 31, 2003
STATE SECRETARY OF THE REPUBLIC OF INDONESIA
BAMBANG KESOWO
STATUTE BOOK OF
THE REPUBLIC OF INDONESIA OF 2003 NO. 158
ELUCIDATION
OF
GOVERNEMENT REGULATION
NO. 63/2003
ON
VALUE ADDED TAX AND SALES TAX ON
LUXURY GOODS IN THE BONDED ZONE OF
THE BATAM ISLAND INDUSTRIAL AREA
GENERAL
Pursuant to Law No. 8/1983 on Value Added Tax on Goods and Services and sales Tax
on Luxury Goods as amended several times and latest by Law No. 18/2000, Value
Added Tax and Sales Tax on Luxury Goods are, principally, being imposed in the
Bonded Zone of the Batam Island Industrial Area. Nevertheless, considering that the
condition of the society in the Bonded Zone of the Batam Island Industrial Area and in
the framework of providing of legal certainty and justice, the imposition of Value Added
Tax and SALES Tax on Luxury Goods need to be enforced gradually through a
transitory period, and by the stipulation of special rulings for businesses that produce
taxable goods for export as high-priority economic activities.
This regulation, principally, stipulates some maters as the following:
a. Stipulation of certain goods and services that will be imposed on the first stage
(starting from January 1, 2004) and the second stage (starting from March 1, 2004)
to be imposed by Value Added Tax and/or Sales Tax on Luxury Goods.
b. Stipulation of other types of goods and services that will be imposed by Value
Added Tax and/or sales Tax on Luxury Goods gradually, which will be set forth in a
Decree of the Minister of Finance for a period of six (6) months, at the latest,
considering the types of basic necessities to be imposed on the latter stages.
c. Granting of facilities for import and/or delivery of goods, which are used to produce
taxable goods for export, which, mainly, has the purpose to encourage the business
world, which, finally, will be beneficial for the society, in-general.
ARTICLE BY ARTICLE
Articles 1-5:
Self-explanatory.
Article 6
Other than the facilities in the form of Value Added Tax and Sales Tax Luxury Goods, as
set forth in Article 2, the Taxable Entrepreneurs in the Bonded Zone of the Batam, Island
Industrial Area are also granted with tax facilities applicable pursuant to the enforcement
rulings of article 16B Law No. 8/1983 on Value Added Tax on Goods and Services and
Sales Tax on Luxury Goods as amended several times and latest by Law No. 18/2000,
amongst others, as follows:
1.
2.
3.
4.
Government Regulation No. 42/1995 on Import Duty, Additional Import Duty,
Values Added Tax and Sales Tax on Luxury Goods, and Income Tax In The
Framework of Implementation of Government’s Projects Funded with Grant or
Offshore Loan Funds as amended several times and latest by Government
Regulation No. 25/2001;
Government Regulation No. 33/1996 on Bonded Hoarding Zone as amended by
Government Regulation No. 43/1997;
Government Regulation No. 145/2000 on Import and/or Delivery of Certain
Taxable Goods and/or delivery of Certain Taxable Services, Which Are Exempted
from Value Added Tax amended by Government Regulation No. 38/2003.
Government Regulation No. 12/2001 on Import and/or delivery of Certain Strategic
Taxable Goods as amended several times and latest by Government Regulation No.
46/2003.
Article 7-9
Self-explanatory.
SUPPLEMENT TO STATUTE BOOK OF
THE REPUBLIC OF INDONESIA NO. 4352