This Regulation classifies administrative sanctions that were imposed in response to unlicensed groundwater constructions and utilization prior to Law No. 6 of 2023 as Non-Tax State Revenue (Penerimaan Negara Bukan Pajak/PNBP). Said fines will be payable by certain categories of Payers, with payment being enforced through a formal notification and billing mechanism that carries consequences for non-compliance. At the same time, this new framework also offers relief by applying a 0% tariff to qualifying non-business entities and micro- and small-scale enterprises that engage in limited groundwater use in order to meet household and/or office needs.

This Circular operationalizes Indonesia?s current electric vehicle policy by requiring regional governments to roll out tax incentives for electric vehicles in compliance with existing fiscal frameworks. The new framework also introduces a short-term compliance obligation that requires the formal adoption and reporting of incentive schemes across the country in line with a fixed national timeline.

This Draft Regulation is set to update the transit and transshipment framework through the introduction of a new onward transportation mechanism for imported spare parts (suku cadang), as well as the formal integration of customs services into the National Logistics Ecosystem (NLE) and the revision of various provisions that specifically address the Relocation of Storage Facilities (Pemindahan Lokasi Penimbunan/PLP). The new framework will also expand the available temporary storage options, accelerate approval timelines and impose stricter implementation deadlines in order to enhance overall efficiency, digital integration and customs supervision.

This Fourth Amendment revises the tax treatment that applies in relation to the use of book value for asset transfers and acquisitions that are undertaken by State-Owned Enterprise (Badan Usaha Milik Negara ? ?BUMN?) taxpayers within the context of mergers, consolidations, acquisitions and spin-offs (collectively referred to as ?Corporate Actions?) for BUMN restructuring purposes. This new framework also reflects an institutional shift from the Ministry of BUMN to the BUMN Regulatory Agency (Badan Pengaturan/BP BUMN). Although the general requirements for applying the book value method remain unchanged, the Fourth Amendment has now amended the business purpose test by requiring the recipients of any transferred assets to continue carrying out the relevant business activities for at least four years after the effective date of the relevant Corporate Actions. In addition, the Fourth Amendment has also introduced limited exemptions to mandatory market value recalculations for certain post-approval non-compliance.

In addition to establishing the overall procedures and mechanisms for the handling of taxation-related crimes, this new Regulation also affirms that both individuals and corporations, regardless of their status as registered taxpayers, may be held liable for any criminal acts that are committed intentionally or that are the result of negligence. This Regulation also allows trial proceedings, including the issuance of verdicts, to be conducted in the absence of any defendants (in absentia).

Any parties wishing to file complaints with the Directorate-General of Taxes (Directorate-General) regarding taxation services or crimes, or regarding the code of ethics, code of conduct and disciplinary procedures that apply to employees of the Directorate-General (collectively referred to as Complaints) may submit their Complaints through any of six official submission channels that are managed by the Directorate-General. These submission channels break down as follows: 1) Phone; 2) Email; 3) The official website of the Directorate-General; 4) Official taxpayer portals; 5) In-person submissions; and 6) Written submissions. Ultimately, reporting parties are entitled to secure information on any follow-ups to the handling of their submitted Complaints through official channels.

This new framework establishes various Value-Added Tax (Pajak Pertambahan Nilai "PPN") obligations that will apply to Organizers of Trading Through Electronic Systems (Penyelenggara Perdagangan Melalui Sistem Elektronik "PPMSE"), as well as to miners of crypto-assets ("Miners"). While crypto-assets themselves are exempt from the imposition of PPN, services that are provided by PPMSE, such as trading platforms and e-wallets, as well as by Miners, will remain taxable in line with certain specific calculation methods and compliance requirements. Additionally, Income Tax (Pajak Penghasilan/PPh) treatments will vary based on taxpayer roles, with final rates ranging from 0.21% for domestic sellers to 1% for certain foreign PPMSE.

This framework now places responsibility for the collection, deposit and reporting of Article-22 Income Tax (Pajak Penghasilan "PPh") on income received by domestic merchants via Electronic System-Based Trading Activities (Perdagangan Melalui Sistem Elektronik "PMSE") with the relevant Organizers of PMSE (Penyelenggara PMSE - "PPMSE"). Generally speaking, the amount of Article-22 PPh that should be collected by PPMSE has been set at 0.5% of a domestic merchants gross turnover, as outlined in relevant billing documents (excluding value-added tax and luxury-goods sales tax).

The Indonesian Government has introduced a regulatory framework on the organization of a new Tax Collection System for Overseas Digital Transactions (Sistem Pemungutan Pajak atas Transaksi Digital Luar Negeri/SPP-TDLN) and has assigned PT Jalin Pembayaran Nusantara to oversee its implementation, as this company has significant technical expertise, is financially strong and is committed to data security. In order to implement this mandate, PT Jalin Pembayaran Nusantara must appoint a qualified Indonesian and/or foreign legal entity as a partner. The selection process for this partnership encompasses a mandatory sandboxing phase that will involve both an administrative assessment and technical testing.

The Amendment states that imports of personal goods that belong to passengers, that are intended for their own personal use ("Personal-Use Goods"), that are acquired from locations lying outside Indonesian customs areas and that have maximum customs-and-excise values of FOB US$ 500 are now exempted from the imposition of value-added tax (Pajak Pertambahan Nilai "PPN"), luxury-goods sales tax (Pajak Penjualan atas Barang Mewah "PPnBM") and income tax (Pajak Pertambahan Nilai "PPh"). This tax exemption also applies to Personal-Use Goods that are brought into the country by transportation crews up to a maximum customs-and-excise value of FOB US$ 50. Meanwhile, imports of goods other than personal belongings that are carried by passengers or transportation crews will now be subject to an import-duty rate of 10%, as well as PPN and PPnBM, and also PPh at a rate of 5%.