New Regulation 2019 Exemption from Import Duty and Non-Collection of Value Added Tax or Value Added Tax and Luxury Goods Sales Tax on the Import of Goods and Materials for Processing, Assembly, or Installation on Other Goods for the Purpose of Export

A company with ease of import exemption for export purposes (exemption KITE) may be given exemption KITE in the form of exemption from import duty as well as non-collection of value added tax (VAT) or VAT and luxury goods sales tax due on the import of goods and materials as well as importation of goods and materials from bonded stockpiling area, free zone, and special economic zone originating from outside a customs area.

To obtain designation as a company with exemption KITE, a business entity must submit application electronically through the Indonesia National Single Window system in the context of Online Single Submission or in writing to the head of regional office or public service office supervising the factory location or business activity location of the business entity.

Exemption KITE period constitutes a period given to a company with exemption KITE to implement the realization of export as from the date of registration of import custom declaration and/or importation custom declaration. An exemption KITE period is given for no later than 12 months or more than 12 months if a company with exemption KITE has a production period of more than 12 months. An exemption KITE period may be given time extension for no later than 12 months based on approval of the head of regional office or public service office issuing a decision on designation as a company with exemption KITE. The extended exemption KITE period may be given re-extension for no later than 12 months based on approval of the Director General of Customs and Excise or the appointed customs and excise official.

The regulation will come into effect as of February 17, 2019 by revoking and declaring null and void Regulation of the Minister of Finance Number 254/PMK.04/2011 regarding Exemption from Import Duty on the Import of Goods and Materials Processing, Assembly, or Installation on Other Goods for the Purpose of Export as amended by Regulation of the Minister of Finance Number 176/PMK.04/2013 and Regulation of the Minister of Finance Number 16/PMK.011/2008 regarding Exemption from Import Duty on the Import of Goods and Materials to Be Assembled into Motor Vehicles for the Purpose of Export as amended by Regulation of the Minister of Finance Number 171/PMK.011/2008.

 

 

 

 

 

 

 

 

Source https://legalcentric.com/content/view/137415

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Taxation Incentives To Be Evaluated

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