to Indonesian
a. that in order to provide certainty of value added tax treatment associated with income and expenditure items in order to export of taxable services are subject to Value Added Tax at the rate of 0% (zero percent), need to improve provisions for the treatment of Value Added Tax on Order Service including crediting provisions Inputs Tax associated with the export of order goods as stipulated in the Regulation of the Minister of Finance No. 70/PMK.03/2010 concerning Limitation of Activities and Services Subject to Tax that Their Export Subject to Value Added Tax;
b. Based on the considerations as intended in paragraph a, and to implement the provisions of Article 4 paragraph (2) of Law No. 8/1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods as amended by Law No. 42/2009, it is necessary to stipulate Regulation of the Minister of Finance concerning Amendment to the Regulation of the Minister of Finance No. 70/PMK.03/2010 concerning Limitation of Activities and Services Subject to Tax that Their Export Subject to Value Added Tax;
1. Law No. 6/1983 concerning General Provisions and Taxation Procedures (Statute Book of the Republic of Indonesia No. 49/1983, Supplement to Statute Book of the Republic of Indonesia No. 3262) as amended by Law No. 16/2009 (Statute Book of the Republic 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 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 Luxury Goods (Statute Book of the Republic of Indonesia No. 51/1883, Supplement to Statute Book of the Republic of Indonesia No. 3264) as amended 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;
5. Regulation of the Minister of Finance No. 70/PMK.03/2010 concerning Limitation of Activities and Services Subject to Tax that Their Export Subject to Value Added Tax;
REGULATION OF THE MINISTER OF FINANCE CONCERNING AMENDMENT TO THE REGULATION OF THE MINISTER OF FINANCE No. 70/PMK.03/2010 CONCERNING LIMITATION OF ACTIVITIES AND SERVICES SUBJECT TO TAX THAT THEIR EXPORT SUBJECT TO VALUE ADDED TAX.
Several provisions in the Regulation of the Minister of Finance No. 70/PMK.03/2010 concerning Limitation of Activities and Services Subject to Tax that Their Export Subject to Value Added Tax are amended as follows:
1. The provisions of Article 1 paragraph 3 is amended, so Article 1 is read as follows:
"Article 1
In this Regulation of the Minister of Finance:
1. Value Added Tax Law is Law No. 8/1983 concerning Value Added Tax of Goods and Services as well as Sales Tax on Luxury Goods as amended several times, latest by Law No. 42/2009.
2. Service is any service activity based on an engagement or a legal action that causes a good, facility, or the rights available for use, including services performed to produce the goods on order or request with the specified materials and provided by the customer.
3. Order services is the provision of services in order to process the completion of a particular item that the worker performed by the service provider (outsourced), and service users set the specifications, as well as providing raw materials and/or semi finished goods and/or auxiliary/aides materials to be processed partially or completely, with the ownership of the finished goods are at the service user.
4. Taxable services are services that are taxable under the Act Value Added Tax.
5. Export of Taxable Services is any taxable service delivery activities to the outside the Customs Area.
6. Replacement is the value in money, including all costs or should be charged by employers for delivery of Taxable Services, Taxable Exports Services, or export of Taxable Intangible Goods, but does not include Value Added Tax levied under the Act Value Added Tax and discounts are included in the Tax Invoice or value in money paid or payable by the Service User due to utilization of Taxable Services and/or by the beneficiary of Taxable Goods due to the utilization of Intangible Taxable Goods from Outside of the Customs Area in the Customs Area."
2. The provisions of Article 8 amended so Article 8 is read as follows:
"Article 8
(1) For Taxable Goods exports produced from export activities of Order Services by Taxable exporters Entrepreneur of Order Services shall be reported as export of Taxable Goods within the Period Notice of Value Added Tax.
(2) Value Added Tax on:
a. the acquisition of Taxable Goods;
b. the acquisition of Taxable Services;
c. utilization of Intangible Taxable Goods from outside of the Customs Area;
d. utilization of Taxable Services from outside of the Customs Area; and/or
e. import of taxable goods,
are Input Tax that can be credited in accordance with the provisions of tax law."
This regulation shall come into force on the date of promulgation.
For public cognizance, this Regulation of the Minister of Finance shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on February 28, 2011
MINISTER OF FINANCE
signed,
AGUS D.W. MARTOWARDOJO