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CIRCULAR OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NUMBER SE-32/BC/2010

CONCERNING
THE EXEMPTION OF COLLECTION OF INCOME TAX ARTICLE 22 ON THE IMPORTED GOODS AS INTENDED IN ARTICLE 3 OF REGULATION OF THE MINISTER OF FINANCE NUMBER 154/PMK.03/2010

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

To:

• 1. Heads of Main Service Offices of DJBC
• 2. Heads of Customs and Excise Service and Control Offices all over Indonesia

In relation with the issuance of Regulation of the Minister of Finance Number 154/PMK.03/2010 concerning Collection of Income Tax Article 22 in Relation with Payment of Delivery of Goods and Activities in the field of import or Business Activities in Other Sector, which comes into force as from December 31,2010, we hereby inform the following matters:

1. Article 3 paragraph (1) of Regulation of the Minister of Finance Number 154/PMK.03/2010 determined that the excluded from the collection of Income Tax Article 22 are:

• a. Imported goods exempted from Import Duty and/or Value Added Tax:
• 1) goods belonging to representatives of foreign countries along with their officials assigned in Indonesia on the basis of reciprocal principle;
• 2) goods needed by international agencies and their officials assigned in Indonesia and not holding Indonesia passport who are recognized and registered in the regulation of the minister of finance that governs procedure for granting the exemption of import duty and excise on imported goods for the need of international agencies and their officials are assigned in Indonesia;
• 3) delivery goods for the need of public worship, charity, social, culture or disaster mitigation interest;
• 4) goods for the need of museum, zoo, natural conservation and other such same kind of places open for public;
• 5) goods for the need of scientific research and development;
• 6) goods for the special need of blind people and other disabled persons;
• 7) coffin or other package containing deceased body or body ash;
• 8) personal effects;
• 9) personal goods of passengers, crew members of carriers, border crossers and delivery goods up to certain quantity in accordance with the provision of customs law;
• 10) goods imported by the Central Government or Regional Governments designated for public interest;
• 11) armament, ammunition and military appliances, including spare parts designated to the need of state defense and security;
• 12) goods and materials used for producing goods for the need of state defense and security;
• 13) polio vaccine in the framework of executing National Immunization Program (PIN);
• 14) general textbooks, holy books and religious books;
• 15) ships, river cross carriers, lake cross carriers, ferry, piloting boats, tug boats, fishing vessels, barges and spare parts as well as navigation safety instruments or human safety appliance imported and used by National Sea Liners or national fishing ship operators;
• 16) air carrier and spare part as well as aviation safety instruments or human safety equipment, equipment for the repairing and maintenance which are imported and used by National Airliners Companies;
• 17) train and spare part as well as repairing and maintenance equipment imported and used by PT Kereta Api Indonesia;
• 18) equipment used for providing data about border and aerial photo of the territory of the Republic of Indonesia executed by the Indonesian National Military; and/or
• 19) goods for the need of upstream oil and natural gas business activities imported by Production Sharing Contractors
• b. Temporarily imported goods solely destined to re-export.

2. Article 3 paragraph (2) of Regulation of the Minister of Finance Number 154/PMK.03/ 2010 also determines that the exemption from the collection of Income Tax Article 22 on the imported goods as intended in paragraph (1)a still applies in case of the imported goods being subject to import duty nil percent.

3. Letter of the Director General of Taxation No. S-317/PJ/2010 dated November 5, 2010 states that Regulation of the Minister of Finance Number 154/PMK.03/2010 has regulated firmly the import of goods needing SKB from Income Tax Article 22 [Article 3 paragraph (3)] and the import of goods not requiring SKB from Income Tax- Article 22 [Article 3 paragraph (4)]. In addition, the exemption from the collection of Income Tax Article 22 in Article 3 paragraphs (1) and (2) is executed by the Directorate General of Customs and Excise.

4 Based on the above explanations, the exemption from the collection of Income Tax Article 22 as intended in Article 3 paragraph (1) and Article 3 paragraph (2) is executed without mechanism of Certificate of Exemption (SKB) from the Directorate General of Taxation.

5. The exemption from the collection of Income Tax Article 22 as intended in paragraph 4 above is granted directly when the Notification of Import Goods is submitted to Head of Main Service Office or Head of Customs and Excise Supervisory and Service Office.

This is for your implementation in a full sense of responsibility.

Stipulated in Jakarta
on December 10, 2010
THE DIRECTOR GENERAL
signed,
Thomas Sugijata
NIP 19510621 197903 1 001