Specific Taxes in Indonesia

Value-Added Tax (VAT):

• 11% for sales of goods and services within Indonesia
• Zero-rated for export of goods; 11% for imports.
• Businesses engaged in the sale of goods and services, with exemptions for small businesses below certain revenue thresholds.

Sales Tax on Luxury Goods (PPnBM):

• PPnBM is levied on the sale of specific luxury goods, such as vehicles, yachts, and jewelry. Sellers and buyers of luxury goods subject to the tax, with exemptions for specific categories or values of goods.
• Rates vary depending on the type and value of the luxury goods, ranging from 10% to 125%.

Land and Building Tax (PBB):

• PBB is a local tax imposed on land and buildings owned by individuals or entities. Property owners, including individuals, companies, and other entities owning land or buildings.
• Rates are determined based on the value of the property and can vary across different regions in Indonesia.

Customs Duties:

• Customs duties are imposed on imported goods entering Indonesia.
• Rates are determined based on the type and value of the imported goods and may vary according to trade agreements and tariff schedules.

Stamp Duty:

• Stamp duty is imposed on certain legal documents, including contracts, agreements, and deeds.
• Rates vary depending on the nature and value of the document.

Taxpayers Subject to These Taxes

• VAT: Businesses engaged in the sale of goods and services, with exemptions for small businesses below certain revenue thresholds.
• PPnBM: Sellers and buyers of luxury goods subject to the tax, with exemptions for specific categories or values of goods.
• PBB: Property owners, including individuals, companies, and other entities owning land or buildings.
• Customs Duties: Importers and exporters of goods, with exemptions or reduced rates for certain products and industries. Customs duties serve to protect domestic industries, regulate imports, and generate revenue for the government.
• Stamp Duty: Parties entering into legal transactions or agreements subject to stamp duty, with exemptions for certain types of documents or transactions. Stamp duty revenue contributes to government finances and serves as a means of formalizing legal transactions while deterring fraudulent practices.

Legal References

• VAT: Law No. 42 of 2009 regarding VAT and Goods and Services Sales Tax.
• PPnBM: Government Regulation No. 35 of 2018 regarding PPnBM on Luxury Goods.
• PBB: Law No. 28 of 2009 regarding Regional Taxes and Levies.
• Customs Duties: Customs Law No. 17 of 2006.
• Stamp Duty: Law No. 13 of 1985 regarding Stamp Duty.