Rabu, Januari 10, 2024

Updates on Abolition of Customs and Excise Receivables: Two New Abolition Mechanisms Introduced

In a bid to provide further legal certainty regarding the abolition of customs-and-excise receivables ("Receivables"), the Minister of Finance ("Minister") has decided to introduce an updated framework on the abolition of Receivables ("Abolition") through the issuance of Regulation No. 147 of 2023 ("Regulation 147/2023"), which will come into effect on 29 March 2024. Previously, matters relating to Abolition were addressed under Regulation of the Minister No. 71/PMK.04/2012 ("Regulation 71/2012"), which has now been repealed and replaced.
At its core, Regulation 147/2023 now explicitly states that the above-described Abolition will be implemented through the following mechanisms: 1) Book write-offs (penghapusbukuan); and 2) Invoice write-offs (penghapustagihan). In this regard, the Abolition may be implemented in relation to Receivables that are outlined in either of the following documents: 1) Stipulation letters; 2) Invoice letters; 3) Decrees of the Director-General of Customs and Excise ("Director-General") on objections; and/or 4) Issued tax court verdicts.
In terms of the implementation of the Abolition of book write-offs, one of the following criteria must first be fulfilled: 1) The relevant collection rights must have expired; 2) Taxable parties must comprise certain individuals and/or legal entities (e.g. have passed away/been liquidated, declared bankrupt and/or are untraceable); or 3) The relevant collection rights cannot be implemented due to conditions that relate to changes in policy/considerations issued by the Minister ("Policy Changes"). Meanwhile, criteria for implementation of the Abolition of invoice write-offs break down as follows: 1) The relevant collection rights have expired; and/or 2) The right of the state to collect the Receivables cannot be implemented as a result of Policy Changes.
It should also be noted that Abolition proposals that were submitted prior to the enforcement of Regulation 147/2023 will continue to be processed in line with Regulation 71/2012.

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*Syarat dan ketentuan berlaku

In a bid to provide further legal certainty regarding the abolition of customs-and-excise receivables ("Receivables"), the Minister of Finance ("Minister") has decided to introduce an updated framework on the abolition of Receivables ("Abolition") through the issuance of Regulation No. 147 of 2023 ("Regulation 147/2023"), which will come into effect on 29 March 2024. Previously, matters relating to Abolition were addressed under Regulation of the Minister No. 71/PMK.04/2012 ("Regulation 71/2012"), which has now been repealed and replaced.
At its core, Regulation 147/2023 now explicitly states that the above-described Abolition will be implemented through the following mechanisms: 1) Book write-offs (penghapusbukuan); and 2) Invoice write-offs (penghapustagihan). In this regard, the Abolition may be implemented in relation to Receivables that are outlined in either of the following documents: 1) Stipulation letters; 2) Invoice letters; 3) Decrees of the Director-General of Customs and Excise ("Director-General") on objections; and/or 4) Issued tax court verdicts.
In terms of the implementation of the Abolition of book write-offs, one of the following criteria must first be fulfilled: 1) The relevant collection rights must have expired; 2) Taxable parties must comprise certain individuals and/or legal entities (e.g. have passed away/been liquidated, declared bankrupt and/or are untraceable); or 3) The relevant collection rights cannot be implemented due to conditions that relate to changes in policy/considerations issued by the Minister ("Policy Changes"). Meanwhile, criteria for implementation of the Abolition of invoice write-offs break down as follows: 1) The relevant collection rights have expired; and/or 2) The right of the state to collect the Receivables cannot be implemented as a result of Policy Changes.
It should also be noted that Abolition proposals that were submitted prior to the enforcement of Regulation 147/2023 will continue to be processed in line with Regulation 71/2012.

......