Though sustainability is the order of the day, Indonesia has continued to increase its reliance upon non-renewable energy resources. To create financial incentives for a movement away from that trend, Minister of Finance Regulation No. 21/PMK.011/2010 on the Granting of Tax and Customs Facilities for Utilization Activities of Renewable Energy Resources provides a series of tax and duty preferences for activities related to the domestic development of renewable energy resources.
Imports of capital goods, machines, and equipment (but not ‘spare parts’) related to utilization of renewable energy resources are exempted from various taxes and customs duties: import income tax, value added tax, and import duty.
For those involved in renewable energy industrial activities, Article 3 (1) of the regulation details income tax preferences, and regulates how to calculate such things as the net income deduction, accelerated amortization, and income tax dividend paid by foreign taxpayers.
In the likely event that imports are involved in the renewable energy resource development or operation, Article 4 provides an exemption to the import income tax duty, or known as the ‘PPh Pasal 22 Impor.’ This facility applies automatically, without having to prove the Statement of Tax Dispensation.
As provided in Article 5, procedures for obtaining exemption from the value added tax are regulated by Government Regulation No. 12 of 2001 on Import and/or Handover of Certain Strategic Taxable Goods which are Exempted from Imposition of Value Added Tax.
In Article 6 of the regulation, reference is made in to other regulations that specifically address procedures for import duty exemption applications and procedures, and lists which precise goods may be exempted. These regulations are Minister of Finance Regulations No. 176/PMK.011/2009, and No. 154/PMK.011/2008.
The Regulation has been in force since 28 January 2010.
Though sustainability is the order of the day, Indonesia has continued to increase its reliance upon non-renewable energy resources. To create financial incentives for a movement away from that trend, Minister of Finance Regulation No. 21/PMK.011/2010 on the Granting of Tax and Customs Facilities for Utilization Activities of Renewable Energy Resources provides a series of tax and duty preferences for activities related to the domestic development of renewable energy resources.
Imports of capital goods, machines, and equipment (but not ‘spare parts’) related to utilization of renewable energy resources are exempted from various taxes and customs duties: import income tax, value added tax, and import duty.
For those involved in renewable energy industrial activities, Article 3 (1) of the regulation details income tax preferences, and regulates how to calculate such things as the net income deduction, accelerated amortization, and income tax dividend paid by foreign taxpayers.
In the likely event that imports are involved in the renewable energy resource development or operation, Article 4 provides an exemption to the import income tax duty, or known as the ‘PPh Pasal 22 Impor.’ This facility applies automatically, without having to prove the Statement of Tax Dispensation.
As provided in Article 5, procedures for obtaining exemption from the value added tax are regulated by Government Regulation No. 12 of 2001 on Import and/or Handover of Certain Strategic Taxable Goods which are Exempted from Imposition of Value Added Tax.
In Article 6 of the regulation, reference is made in to other regulations that specifically address procedures for import duty exemption applications and procedures, and lists which precise goods may be exempted. These regulations are Minister of Finance Regulations No. 176/PMK.011/2009, and No. 154/PMK.011/2008.
The Regulation has been in force since 28 January 2010.
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