New Regulation on Income-Tax Tariffs for Imports and Sales of Certain Goods

The Ministry of Finance (“Ministry”) has issued Regulation No. 34/PMK.010/2017 on Payment of Article 22 Income Tax for Handover Goods and Other Activity Within the Import Sector and Within Other Sectors (“Regulation 34/2017”).
 
Through the issuance of Ministry Regulation 34/2017, the government is aiming to maintain the price stability and availability of food commodities and raw materials for domestic oil refineries, as well as to facilitate exports of minerals and coal, which were previously regulated under Ministry Regulation No. 154/PMK.03/2010 (“Regulation 154/2010”),as  most recently amended with Ministry  Regulation No. 16/PMK.010/2016.[1]
 
Regulation 34/2017 redefines the following matters:
 
1.    Eligible tax collectors;
2.    Income-tax tariffs;
3.    Income-tax tariff exemptions; and
4.    Income-tax tariff transfer procedures.
 
This edition of Indonesian Legal Brief will confine its discussions to points (1), (2) and (3) above.
 
Eligible Tax Collectors
 
Regulation 34/2017 describes several parties which are authorized to collect Article 22 Income Tax, dependent on the underlying activity which results in such payable income tax, as detailed below: