Regulation of the Minister of Finance Number 259/PMK.04/2016

Regulation of the Minister of Finance Number 259/PMK.04/2016 regarding Exemption From or Reduction of Import Duty and/or Exemption From Value Added Tax on the Import of Goods in the Context of Contract of Work or Coal Contract of Works

Exemption from or reduction of import duty and/or exemption from Value Added Tax on the import of goods in the context of Contract of Work (KK) and  Coal Contract of Work (PKP2B) may only be granted to contractors whose contracts set out exemption from or reduction of import duty and/or exemption from Value Added Tax on the import of goods in the context of Contract of Work (KK) and  Coal Contract of Work (PKP2B). Such tax exemption and/or reduction is granted based on a masterlist prepared by the Chairperson of the Investment Coordinating Board or the designated official on behalf of the Minister of Finance. Therefore, import of goods that is not based on the masterlist will be subject to import duty and/or Value Added Tax, except in the event of force majeure, whereby invoice that has been approved by the Chairperson of the Investment Coordinating Board or the appointed official may be used as replacement of the masterlist.

This regulation also contains provisions on assignment, re-export and destruction of goods imported with import duty or value added tax exemption or reduction facility as well as the procedures for obtaining approval of assignment, re-export and destruction from the Head of Customs Office where the goods are located as well as tax treatment related to import duty or value added tax exemption or reduction facility that has been granted.

This regulation will come into effect as of 3 February 2017.

 

Source

The Minister Of Finance Regulation Number 32/PMK.05/2014
The Minister Of Finance Regulation Number 32/PMK.05/2014

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