While the newly applied 12% value-added tax (Pajak Pertambahan Nilai "PPN") rate remains set to take effect in 2025, this new framework now includes several schemes for its application. The first scheme applies to luxury goods (e.g. motorized vehicles and other items subject to the luxury goods sales tax), to which the 12% PPN rates will be applied based on the relevant sales prices or import values. Apart from the abovementioned luxury goods, this framework clarifies that non-luxury goods will also be subject to the 12% PPN rates. However, the relevant import values, sales prices, or compensation will first be multiplied by 11/12 before the application of the PPN rates, resulting in a final PPN tariff similar to the previous 11% PPN rate.

The revised process requires ethyl-alcohol products to be destroyed within factory premises using approved materials before leaving said facilities. Strict penalties will be imposed in response to any failure to follow prescribed methods or attempt to recover destroyed alcohol. Moreover, periodic laboratory testing will be implemented in order to verify the conformity of mixing and destructive processes with regulatory standards. An analytical tolerance of up to 5% is permitted, while sanctions will be imposed if this limit is exceeded.

This new Regulation clarifies the ownership, control and utilization of various properties that are exempted from the collection of rural and urban land-and-building tax (Pajak Bumi Dan Bangunan Perdesaan Dan Perkotaan/PBB-P2). Said properties include the following, among others: 1) Land and/or buildings that are used in relation to public services (e.g. for religious, social, health or educational purposes) and public infrastructure (e.g. railway lines or mass rapid transit); 2) Certain forest and state land without any land rights; 3) Certain residential areas; and so forth.

Adjustments have been made to the procedures for excise exemptions ("Exemptions"), including clarified thresholds and updated issuance processes for individual users of excisable goods ("Users') who have secured Exemption identification numbers (Nomor Pokok Pengguna Pembebasan "NPPP"). A determination of the various excisable goods that will be considered eligible to enjoy the Exemption, as well as the issuance of new NPPP that are in line with this new framework will come into full effect by 2025.

Entrepreneurs who engage in deliveries and/or exports will be required to report their operations to the Tax Service Office (Kantor Pelayanan Pajak "KPP") in order to secure confirmation as Taxable Entrepreneurs (Pengusaha Kena Pajak "PKP"). However, this obligation is optional for entrepreneurs that are classified as small businesses.

Value-Added Tax ("VAT") Incentives for Transfers of Landed Houses and Units in Apartment Buildings Borne by the Government (Pajak Pertambahan Nilai yang Ditanggung Pemerintah "PPN DTP") are available for transfers of property at the time of signing of sale and purchase deeds prepared by land deed officials or fully paid sale and purchase agreements that are signed before notaries. Furthermore, all such transfers must be completed between 1 September 2024 and 31 December 2024 and must be followed by actual handovers of the relevant rights to ready-to-occupy landed houses (rumah tapak) and units in apartment buildings (rumah susun) (collectively referred to as "Properties"), as documented during this period in official handover reports.

In order for representatives of foreign countries, international organizations and their officials to secure value-added tax (Pajak Pertambahan Nilai/PPN) or luxury good sales tax (Pajak Pertambahan Nilai dan Pajak Penjualan atas Barang Mewah/PPnBM) exemptions ("Tax Exemptions"), the aforementioned parties must now fulfill the following requirements: 1) Must be a foreign citizen; 2) Must reside in Indonesia; 3) Must have secured a tax identification number (Nomor Pokok Wajib Pajak/NPWP); and 4) Must have secured an approval to carry out a duty or occupy a position in Indonesia from the relevant Minister.

While it is still prohibited for financial services institutions (Lembaga Jasa Keuangan "LJK"), other LJKs and/or other entities (collectively referred to as "Financial Institutions"), as well as the leaderships and/or employees of said Financial Institutions to provide false statements, the Third Amendment has now clarified that this includes a prohibition on Financial Institutions entering into agreements and/or engaging in practices that facilitate the avoidance of mandatory disclosures financial information. Moreover, the Director-General of Tax has now been granted the following new authorities: 1) The authority to determine which agreements and/or practices meet the threshold for the avoidance of mandatory disclosures of financial information; and 2) The authority to obtain financial information (including statements and/or other information) that specifically relates to the agreements and/or practices outlined in point (1).

Domestic corporate taxpayers ("Corporate Taxpayers") who invest in the City of Nusantara (Ibu Kota Nusantara "IKN") and/or certain regions of Kalimantan as part of the IKN economic superhub ("Partner Regions") are entitled to secure corporate income-tax reduction facilities ("Tax Reductions") upon meeting the applicable minimum investment threshold of Rp. 10 billion. While Tax-Reduction-eligible investments in IKN comprise three main categories (i.e. Infrastructure and Public Services, Economy Generation and Other Business Sectors), Tax-Reduction-eligible investments in Partner Regions only cover Infrastructure and Public Services.

Various new tax administration services that will utilize the New Identification Numbers have been introduced, including: 1) E-registrations; 2) Issuance of withholding certificates and reporting of Article 21/26 Income Tax returns (e-Bupot 21/26); and 3) Issuance of withholding certificates and reporting of Unified Article 21/26 Income Tax returns (e-Bupot Unifikasi). Explanations of these and other new types of services will be gradually introduced to the general public