New Year, New 11/12 Tax Rules: Will the 12% PPN Rate be Truly Applicable?

Following the amendments made to Law No. 8 of 1983 on Value-Added Tax on Goods and Services (Pajak Pertambahan Nilai – “PPN”) and Luxury-Goods Sales Tax (Pajak Penjualan atas Barang Mewah – “PPnBM”) through the introduction of Law No. 7 of 2021 on the Harmonization of Tax Regulations, as well as Law No. 6 of 2023 on the Enactment of Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation into Law (collectively referred to as “Law 8/1983”), the government stipulated that the applicable PPN rate would be gradually increased in line with the following periods:^[1]