to Indonesian
a. that to give more legal certainty and ease in the imposition of Value Added Tax on imported films, it is necessary to stipulate Other Value as the Tax Imposition Base on Utilization of intangible Taxable Goods from Outside of Customs Area inside Customs Area and delivery of the imported films;
b. that in Regulation of the Minister of Finance No. 75/PMK.03/2010 concerning Other Value as the Tax Imposition Base, determination of Other Values as an imposition base of Value Added Tax, among others, for delivery of feature films;
c. that in the framework of the imposition/ treatment of Value Added Tax and Income Tax on imported feature films and in connection with specific tariff stipulation for import duty on imported films, it is necessary to separate regulation on the utilization of intangible Taxable Goods from outside of Customs Area within the Customs Area in the form of imported films and delivery of imported films, and imposition base of Article 22 Income Tax on the importing films activities;
d. that based on provisions in article 8A paragraph (2) of Law No. 8/1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxurious Goods, as amended several times, the latest by Law No. 42/2009, the Minister of Finance shall be authorized to stipulate Other Value as an imposition base of Value Added Tax;
e. that based on provisions in Article 22 paragraph (2) of Law No. 7/1983 concerning Income Tax as amended several times, the latest by Law No. 36/2008, the Minister of Finance shall be authorized to regulate the collection base of import Article 22 Income Tax;
f. that based on the considerations as intended in paragraphs a, b, c, d, and e, it is necessary to stipulate Regulation of the Minister of Finance concerning Other Value as the Tax Retribution Basis for Intangible Taxable Goods Utilization from Outside of Customs Area Inside Customs Area, in the form of Imported Films and Delivery of Imported Films, as well as Basis for Article 22 Income Tax Retribution for Imported Films Activities;
1. Law No. 6/1983 concerning General Provisions and Procedures of Taxation (Statute Book of the Republic of Indonesia No. 49/1983, Supplement to Statute Book of the Republic of Indonesia No. 3262) as amended several times, the latest by Law No. 16/2009 (Statute Book of the Republic of Indonesia No. 62/2009, Supplement to Statute Book of the Republic of Indonesia No. 4999);
2 Law No. 7/1983 concerning Income Tax (Statute Book of the Republic of Indonesia No. 50/1983, Supplement to Statute Book of the Republic of Indonesia No. 3263) as amended several times, the latest by Law No. 36/2008 (Statute Book of the Republic of Indonesia No. 133/2008, Supplement to Statute Book of the Republic of Indonesia No. 4893);
3. Law No. 8/1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxurious Goods (Statute Book of the Republic of Indonesia No. 51/1983, Supplement to Statute Book of the Republic of Indonesia No. 3264) as amended several times, the latest by Law No. 42/2009 (Statute Book of the Republic of Indonesia No. 150/2009, Supplement to Statute Book of the Republic of Indonesia No. 5069);
4. Presidential Decree No. 56/P/2010;
REGULATION OF THE MINISTER OF FINANCE CONCERNING OTHER VALUE AS THE TAX RETRIBUTION BASIS FOR INTANGIABLE TAXABLE GOODS UTILIZATION FROM OUTSIDE OF CUSTOMS AREA INSIDE CUSTOMS AREA, IN THE FORM OF IMPORTED FILMS AND DELIVERY OF IMPORTED FILMS, AS WELL AS BASIS FOR ATRICLE 22 INCOME TAX RETRIBUTION FOR IMPORTED FILMS ACTIVITIES
In Regulation of the Minister of Finance has the following meanings:
1. Goods are tangible goods, which according to their legal nature can be either movable or immovable, and intangible goods.
2. Taxable Goods are goods which are taxed based on Law No. 8/1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxurious Goods as amended several time, the latest by Law No. 42/2009.
3. Utilization of Intangible Taxable Goods from Outside of Customs Area is any activity of the utilization of Taxable Intangible Goods from outside of Customs Area within the Customs Area.
4. Tax Imposition Base is the amount of Sales Price, Replacement, Import Value, Export Value, or other value used as the basis for calculating tax payable.
5. Other Value is value in the form of money as Tax Imposition Base.
6. Imported Film is a work of art and culture which is a social institution and mass communication media made based on the rules of cinematography, with or without sound which tells the fictive or narrative story and can displayed and recorded on celluloid tape, video tape, optical disc, or other materials derived from outside of Customs Area to be exploited domestically.
7. Importer is an entrepreneur who conducts business in the field of film import and/or film circulation.
8. Cinema Entrepreneur is an entrepreneur who organizes film display in the cinema.
(1) On the Utilization of Taxable Intangible Goods from outside of Customs Area within the Customs Area in the form of Imported Films, Value Added Tax shall be payable.
(2) Value Added Tax payable as intended in paragraph (1) shall be collected while importing the media of Imported Films.
(3) Tax Imposition Base used for calculating Value Added Tax payable as intended in paragraph (2) shall be Other Value.
(4) Other Value as intended in paragraph (3) has considered the value from media of Imported Films.
(5) Other Value used as Imposition Base of Value Added Tax as intended in paragraph (3) shall be in the form of money which is specified at Rp12,000,000.00 (twelve million rupiah) per copy of Imported Film.
(1) On delivery of Imported Films by the Importer to Cinema Entrepreneur, Valued Added Tax shall be payable.
(2) Tax Imposition Base used for calculating Value Added Tax payable on the delivery of Imported Films as intended in paragraph (1) shall be Other Value.
(3) Other Value used as Imposition Base of Value Added Tax as intended in paragraph (2) shall be in the form of money which is specified at Rp12,000,000.00 (twelve million rupiah) per copy of Imported Film.
(4) Value Added Tax as intended in paragraph (2) shall be collected only once for each copy of Imported Films of which collection shall be carried out when copy of Imported Films is delivered to the Cinema Entrepreneur for the first time.
The amount of Other Value as Tax Imposition Base as intended in Article 2 paragraph (5) and Article 3 paragraph (3) can be reviewed periodically, which shall be stipulated by Regulation of the Minister of Finance.
(1) Collection Base of Article 22 Income Tax for importation of Imported Films shall be Import Value on media of Imported Films.
(2) Import Value as intended in paragraph (1) shall be value in the form of money as the calculation base of Import Duty, namely Cost Insurance and Freight (CIF) plus Import Duty and other collection imposed under the provisions of laws and regulations on customs clearance in the field of import.
With the enactment of this Regulation of the Minister of Finance, on the delivery of Imported Films, the provisions as intended in Regulation of the Minister of Finance No. 75/PMK.03/2010 concerning Other Value as the Tax Imposition Base shall not be applicable.
This Ministerial Regulation shall come into force on the date of promulgation.
For public cognizance, this Ministerial Regulation shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on July 13, 2011
MINISTER OF FINANCE,
Signed.
AGUS D.W. MARTOWARDOJO