Kamis, Februari 10, 2022

Scope, Criteria, Rates and Periods for the Granting of PPnBM Incentives for Handovers of Certain Motorized Vehicles Updated

The Minister of Finance ("Minister") recently issued Regulation No. 5/PMK.010/2022 on Luxury-Goods Sales Tax for Handovers of Luxury Taxable Goods in the Form of Motorized Vehicles Borne by the Government During the 2022 Fiscal Year ("Regulation 5/2022"), which repeals and replaces the previous regulatory framework that addressed similar incentives, specifically Regulation of the Minister No. 31/PMK.010/2021 and its amendments ("Regulation 31/2021").
During the 2022 fiscal year, the Indonesia Government will bear any luxury-goods sales tax (pajak penjualan barang mewah – "PPnBM") that is payable in relation to handovers of motorized vehicles that meet the following criteria: 1) Energy-saving and affordable four-wheeled motorized vehicles that meet the required thresholds on fuel consumption, emissions rates and cylinder capacities, which differ dependent on engine type (i.e. spark-ignition engines or diesel/semi-diesel engines); 2) Motorized vehicles that are used as passenger transportation in order to transport fewer than 10 persons (including the driver), that have maximum cylinder capacities of 1,500 cc and that comply with other required thresholds relating to fuel consumption and emissions rates, which also differ based on engine type. Fuel consumption and emissions rates were not previously specified as required thresholds under the framework of Regulation 31/2021.
The government-borne PPnBm incentive for handovers of motorized vehicles, as outlined above, will be granted if motorized vehicles feature locally-produced components (local purchase) in minimum amounts of 80% (a threshold of 60% was previously set).
On the road prices for motorized vehicles eligible to receive the PPnBm incentive must fall into the following price ranges: 1) A maximum of Rp. 200 million (for energy-saving and affordable four-wheeled motorized vehicles; 2) Between Rp. 200 million and Rp. 250 million (for motorized vehicles used as passenger transportation, as outlined in point [2] above).
The rates of government-borne PPnBm for energy-saving and affordable four-wheeled motorized vehicles break down as follows: 1) 100% (for PPnBM payable from the January 2022 tax period until the March 2022 tax period); 2) 66.6% (for PPnBM payable from the January 2022 tax period until the March 2022 tax period); and 3) 33.3% (for PPnBM payable from the July 2022 tax period until the September 2022 tax period). Meanwhile, government-borne PPnBM for handovers of motorized vehicles used as passenger transportation, as outlined above, has been set at a rate of 50% of payable PPnBM.
Regulation 5/2022 has been in force since 2 February 2022.

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The Minister of Finance ("Minister") recently issued Regulation No. 5/PMK.010/2022 on Luxury-Goods Sales Tax for Handovers of Luxury Taxable Goods in the Form of Motorized Vehicles Borne by the Government During the 2022 Fiscal Year ("Regulation 5/2022"), which repeals and replaces the previous regulatory framework that addressed similar incentives, specifically Regulation of the Minister No. 31/PMK.010/2021 and its amendments ("Regulation 31/2021").
During the 2022 fiscal year, the Indonesia Government will bear any luxury-goods sales tax (pajak penjualan barang mewah – "PPnBM") that is payable in relation to handovers of motorized vehicles that meet the following criteria: 1) Energy-saving and affordable four-wheeled motorized vehicles that meet the required thresholds on fuel consumption, emissions rates and cylinder capacities, which differ dependent on engine type (i.e. spark-ignition engines or diesel/semi-diesel engines); 2) Motorized vehicles that are used as passenger transportation in order to transport fewer than 10 persons (including the driver), that have maximum cylinder capacities of 1,500 cc and that comply with other required thresholds relating to fuel consumption and emissions rates, which also differ based on engine type. Fuel consumption and emissions rates were not previously specified as required thresholds under the framework of Regulation 31/2021.
The government-borne PPnBm incentive for handovers of motorized vehicles, as outlined above, will be granted if motorized vehicles feature locally-produced components (local purchase) in minimum amounts of 80% (a threshold of 60% was previously set).
On the road prices for motorized vehicles eligible to receive the PPnBm incentive must fall into the following price ranges: 1) A maximum of Rp. 200 million (for energy-saving and affordable four-wheeled motorized vehicles; 2) Between Rp. 200 million and Rp. 250 million (for motorized vehicles used as passenger transportation, as outlined in point [2] above).
The rates of government-borne PPnBm for energy-saving and affordable four-wheeled motorized vehicles break down as follows: 1) 100% (for PPnBM payable from the January 2022 tax period until the March 2022 tax period); 2) 66.6% (for PPnBM payable from the January 2022 tax period until the March 2022 tax period); and 3) 33.3% (for PPnBM payable from the July 2022 tax period until the September 2022 tax period). Meanwhile, government-borne PPnBM for handovers of motorized vehicles used as passenger transportation, as outlined above, has been set at a rate of 50% of payable PPnBM.
Regulation 5/2022 has been in force since 2 February 2022.

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