REGULATION OF THE MINISTER OF FINANCE
No. 154/PMK.03/2010

CONCERNING
COLLECTION OF INCOME TAX ARTICLE 22 PERTAINING TO PAYMENT OF DELIVERY OF GOODS AND ACTIVITIES ON IMPORT OR BUSINESS ACTIVITIES IN OTHER SECTORS

BY THE GRACE OF ALMIGHTY GOD
THE MINISTER OF FINANCE,

Considering:

a. that based on provision in Article 22 paragraph (1)a of Law No. 7/1983 concerning Income Tax as amended several times and the latest by Law No. 36/2008, the Minister of Finance may assign Government Treasurer to collect tax pertaining to payment for goods delivery;

b. that based on provision in Article 22 paragraph (1)b of Law No. 7/1983 concerning Income Tax as amended several times and the latest by Law No. 36/2008, the Minister of Finance may assign certain agencies to collect tax from Obligatory Taxpayer conducting activities in import sector or business activities in other sectors;

c. that based on the consideration as intended in paragraphs a and b and in the framework of implementing the provision in Article 22 paragraph (2) Law No. 7/1983 concerning Income Tax as amended several times and the latest by Law No. 36/2008, it is necessary to stipulate Regulation of the Minister of Finance concerning Collection of Income Tax Article 22 Pertaining to Payment of Delivery of Goods and Activities on Import or Business Activities in Other Sectors;

In view of:

1. Law No. 6/1983 concerning General Provision and Procedure of Taxes (Statute Book No. 49/1983, Supplement to Statute Book No. 3262) as amended several times and the latest by Law No. 16/2009 Statute Book No. 62/2009, Supplement to Statute Book No. 4999);

2. Law No. 7/1983 concerning Income Tax (Statute Book Republic of Indonesia No. 50/1983, Supplement to Statute Book No. 3263) as amended several times and the latest by Law No. 36/2008 (Statute Book No. 133/2008, Supplement to Statute Book No. 4893);

3. Law No. 10/1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book Republic of Indonesia No. 3612) as amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book Republic of Indonesia No. 4661);

4. Presidential Decree No. 56/P/2010;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE CONCERNING COLLECTION OF INCOME TAX ARTICLE 22 PERTAINING TO PAYMENT OF DELIVERY OF GOODS AND ACTIVITIES ON IMPORT OR BUSINESS ACTIVITIES IN OTHER SECTORS.

Article 1

Tax collection as intended in Article 22 Law No. 7/1983 concerning Income Tax as amended several times and the latest by Law No. 36/2008, shall be:

• a. Foreign Exchange Bank and Directorate General of Customs and Excise, on imported goods;
• b. Government Treasurer and Budget User Proxy (KPA) as tax collector at the Central Government, Regional Government, Agency or Government institution and other State institutions pertaining to tax payment for goods purchasing;
• c. treasurer for expenditure for payment made using mechanism on stock money (UP);
• d. Budget User Authority (KPA) or Pay Instruction Letter Issuing Official as delegated by the KPA, to make payment to third party using the direct payment mechanism (LS);
• e. business entity that operates in cement industry, paper, steel, and automotive industries appointed by the Head of Tax Service Office, on sales tax for the products it produces domestically;
• f. producer or importer of oil fuel, gas, and lubrication for the sale of oil fuel, gas, and lubrication;
• g. Industry and exporter that operate in forestry, plantation, agriculture, and fishery sectors appointed by the Head of Tax Service Office on purchase of materials for industrial or their export necessities from collecting traders.

Article 2

(1) The amount of Income Tax collection Article 22 is stipulated as follows:

• a. on import:
• 1. that uses Import Identification Number (API), 2.5% (two and a half percent) or the import value, except for import of soybean, wheat and flour 0.5% (a half percent) of the import value;
• 2. not using Import Identification Number (API), 7.5% (seven and a half percent) of the import value; and/or
• 3. not under control, 7.5% (seven and a half percent) or the bid sales value.
• b. For purchase of goods as intended in Article 1 b, c, and d, 1.5% (one and a half percent) of the purchasing price.
• c. For sale of oil fuel, gas, and lubrication by the producer or importer of oil fuel, gas and lubrication shall be as follows:
• 1. Oil Fuel:
• a. 0.25% (a quarter percent) of the sale excluding Value Added Tax for sale to SPBU Pertamina;
• b. 0,3% (zero point three percent) of the sale excluding Value Added Tax for sale to non Pertamina SPBU and to Non SPBU;
• 2. Gas Fuel 0,3% (zero point three percent) or the sale excluding Value Added Tax;
• 3. Lubrication 0.3% (zero point three percent) of the sale excluding Value Added Tax.
• d. For sale of products produced domestically by business entity operating in cement, paper, steel and automotive industrial sectors.
• 1. domestic paper sale 0,1% (zero point one percent) of the basic imposition of Value Added Tax;
• 2. sale of all types of local cement 0,25% (zero point two five percent) of the basic imposition of Value Added Tax;
• 3. sale of all types of two-wheel or more motor vehicles domestically 0,45% (zero point four five percent) of the basic imposition of Value Added Tax;
• 4. sale of steel domestically 0,3% (zero point three percent) or the basic imposition of Value Added Tax.
• e. For purchase of materials for industrial necessities or for export by industrial business entity or exporter operating in forestry, plantation, agriculture and fishery sectors appointed as collector of Income Tax Article 22 from collecting traders 0,25% (zero point two five percent) of the purchase price excluding Value Added Tax.

(2) Import value as intended in paragraph (1)a1 and 2 shall be the value in the form of money constituting the basis for calculating Import Duty, namely Cost Insurance and Freight (CIF) plus Import Duty and other levies subject to the provisions in the statutory regulation applicable on customs on import.

(3) The tariff rate of levies as intended in paragraph (1) applies on the Obligatory Taxpayer not holding Obligatory Taxpayer Identification Number exceeds 100% (one hundred percent) of the tariff applies on Obligatory Tax payer that holds Obligatory Taxpayer Identification Number.

(4) The provision as intended in paragraph (3) applies on Income Tax Article 22 that is non final.

Article 3

(1) Except for collection of Income Tax Article 22:

• a. No Income Tax is overdue on import of goods and! or delivery of goods based on the provisions in the statutory regulation;
• b. Imported goods exempted from collection of Import Duty and/or Value Added Tax:
• 1. goods belonging to foreign country's representative and its officials assigned on duty in Indonesia based on mutual principle;
• 2. goods for the need of international agency and its officials assigned on duty in Indonesia and not holding Indonesian passport that are recognized and registered in the Regulation of the Minister of Finance governing the procedure for granting exemption of import duty and Excise on imported goods for the need of international agency and its officials assigned on duty in Indonesia;
• 3. goods in the form of gift parcel for general need for religious matter, charity, social, culture or for control of disaster;
• 4. goods for the need of museum, zoo, natural conservation and other places of the same kind that are open to public;
• 5. goods for the purpose of research and development of science;
• 6. goods for special need of the blinds and other incapables;
• 7. case or other packages containing corpse or urn for corpse ash;
• 8. removal goods;
• 9. goods belonging to passengers, transporting facility crew, border crosser, and shipment up to a certain limit based on the provisions in the statutory regulation;
• 10. goods imported by the Central Government or Regional Government for the purpose of public interest;
• 11. weapons, ammunition, and military equipment, including spare parts allocated for States defence and security;
• 12. goods and material used to produce goods for defence and security of the country;
• 13. Polio vaccine in the context of implementing Week of National Immunization program (PIN);
• 14. public text books; holy books and religious text books;
• 15. ship, river transporting boat, lake transporting boat, ferry, piloting boat, towing boat, fishing boat, tug boat, and spare parts and navigation safety equipment or human safety equipment imported and used by National Commercial Navigation Company or national fishing company;
• 16. aircraft and spare parts and flight safety equipment or human safety equipment, equipment for repair or maintenance imported and used by National Commercial Air Transporting Company;
• 17. railway and spare parts and equipment for repair or maintenance and infrastructure imported and used by PT Kereta Api Indonesia;
• 18. equipment used to provide data on borders and air photo of the territory of the State by the Indonesian National Army; and/or
• 19. goods for Natural Oil and Gas upstream activities imported by Cooperation Contract Contractors.
• c. Temporary import, if during the import is clearly declared for re-export;
• d. Re-import, covering goods that have been re-exported and later re-imported in the same quality or the goods that have been exported for repair, work and test, that have complied with the terms stipulated by the Directorate General of Customs and Excise;
• e. Payment made by the tax collector as intended in Article 1 b, c and d, pertaining to:
• 1. payment which amount is maximum Rp 2.000.000,00 (two million Rupiahs) but not constituting undivided payments;
• 2. Payment for purchase of oil fuel, electricity, gas, lubrication, potable water/PDAM and postal items.
• f. Payment for purchase of paddy and/or rice by Public Logistic Company (BULOG);
• g. Gold ingot to be processed to produce jewellery for export;
• h. payment for purchase of goods to the use of fund for School Operational Assistance (BOS).

(2) Exception to collection of Income Tax Article 22 on imported goods as intended in paragraph (1) b remains survive if the imported goods is subject to 0% (zero percent) import duty.

(3) The exception as intended in paragraph (1) a and g shall be declared in Statement Letter of Free Income Tax Article 22 issued by the Director General of Taxes.

(4) The exception as intended in paragraph (1) d, e, f and h shall be exercised without Statement Letter of Exemption (SKS).

(5) The provisions as intended in paragraph (1) b and c and paragraph (2) shall be implemented by the Directorate General of Customs and Excise the procedure of which is governed by the Director General Customs and Excise and/or Director General of Taxes.

Article 4

(1) Overdue Income Tax Article 22 on imported goods shall be settled together with payment of Import Duty.

(2) If payment of Import Duty is postponed of exempted, then the overdue Income Tax shall be settled at completion of the Notification of Exempted Imported Goods document (PIB).

(3) Overdue Income Tax Article 22 on purchase of goods by the tax collector as intended in Article 1 b, c and d shall be collected at payment.

(4) Income Tax Article. 22 on the sale of products of cement, paper, steel and automotive industries at the sale thereof.

(5) Overdue Income Tax Article 22 on the sale of products of oil fuel, gas and lubrication shall be collected at the issue of Instruction Letter for Goods Clearance (delivery order).

(6) Overdue Income Tax Article 22 on purchase of materials from collecting traders shall be collected at the purchase thereof.

Article 5

(1) Collection of Income Tax Article 22 on imported goods shall be conducted by means of deposit by:

• a. the importer concerned; or
• b. the Directorate General of Customs and Excise,
• to the State Treasury through the Post Office, exchange bank, or bank designated by the Minister of Finance.

(2) Collection of Income Tax Article 22 on purchase of goods by the tax collector as intended in Article 1 b, c and d, must be deposited by the collector to the State Cashier through the Post Office, exchange bank, or bank designated by the Minister of Finance, using Tax Deposit Slip that has been filled-in on behalf of the client and signed by the tax collector;

(3) Collection of Income Tax Article 22 on sale of oil fuel, gas and lubrication, and sale of products produced by cement, paper, steel and automotive industries must be deposited by the tax collector to the State Cashier through the Post Office, exchange bank, or bank designated by the Minister of Finance using Tax Payment Slip.

(4) Collection of Income Tax Article 22 on purchase of materials for industrial necessities or for export by industrial business entity or exporter operating in forestry, plantation, agriculture and fishery sectors must be deposited by the tax collector to the State Cashier through the Post Office, exchange bank, or bank designated by the Minister of Finance using Tax Deposit Slip.

Article 6

(1) Deposit of Income Tax Article 22 by importer, the Directorate General of Customs and Excise and tax collector as intended in Article 1 b, c and d, shall use Tax Deposit Slip form that applies as Proof of Tax Collection.

(2) The tax collector as intended in Article 1 e, f and g, shall be obliged to issue Proof of Collection of Income Tax Article 22 in three (3) folds, namely:

• a. the first sheet for the Obligatory Taxpayer (buyer/collecting trader);
• b. the second sheet for attachment to the monthly report to the Tax Service Office (supported by Fiscal Notification Letter on Income Tax Article 22); and
• c. the third sheet for file of the tax collector concerned.

Article 7

The tax collector as intended in Article 1 must report the result of his/her collection using Fiscal Notification Letter to the Tax Service Office.

Article 8

Deposit of Income Tax Article 22 as intended in Article 5 and report on collection of Income Tax Article 22 as intended in Article 7, shall be made according to the term stipulated in Regulation of the Minister of Finance that governs the determination of due date for payment, deposit and report of tax collection.

Article 9

(1) Collection of Income Tax Article 22 on imported goods, purchase of goods by the tax collector as intended in Article 1 b, c and d, sale of products of cement, industry, paper industry, steel industry and automotive industry and purchase of materials for industrial needs or for export that are not yet final and may be accounted for as payment of Income Tax in the current year for the Obligatory Taxpayer being collected.

(2) Collection of Income Tax Article 22 on sales of oil fuel, gas and lubrication to:

• a. distributor/agent that is final;
• b. other than distributor/agent that is not final.

Article 10

Further provision on the procedure for collection of Income Tax Article 22 pertaining to tax payment on goods delivery and for activities in import sector or business activities in other sector shall be governed in Regulation of the Director General of Taxes.

Article 11

By the time this Regulation of the Minister of Finance comes to effect, Decree of the Minister of Finance No. 254/KMK.03/2001 concerning Appointment of Income Tax Article 22 Collector, the nature and amount of collection and procedure for depositing and reporting thereof as amended several times and lately amended by Regulation of the Minister of Finance No. 210/PMK.03/2008, is revoked and declared null and void.

Article 12

This Regulation of the Minister of Finance takes effect on the date it is enacted.

For public cognizance, this Regulation of the Minister of Finance shall be announced by placing it in the State Gazette of the Republic of Indonesia.

Stipulate in Jakarta
on August 31, 2010
MINISTER OF FINANCE,
signed,
AGUS D.W. MARTOWARDOJO