Indonesia updates tax regulations on ID numbers, mobile credit and luxury goods sales tax

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Indonesia updates tax regulations on ID numbers, mobile credit and luxury goods sales tax

Sponsored by

sponsored-firms-gnv.png
The Indonesian tax scene continues to develop

I Dewa Made Agung Nugraha and Erviyanti of GNV Consulting discuss the amendments to taxpayer ID numbers, VAT on cellular phones and luxury goods sales tax.

Single identity number and/or taxpayer ID number in public services

To support the implementation of public services to citizens in fulfilling their fundamental rights and needs, on September 9 2021 the President of the Republic of Indonesia published and enforced Presidential Decree No. 83 of 2021 (Perpres 83) which governs “Inclusion and utilisation of the single identity number (NIK) and/or taxpayer ID number (NPWP) in the fields of public services”.

The inclusion of NIK and/or NPWP is carried out with the following conditions:

  • NIK as an identity marker for individuals who do not have an NPWP;

  • NPWP is used as an identity marker for foreign entities or persons that do not have a NIK; and

  • NIK and NPWP are used as identity markers for individuals who already have an NPWP. 

Service recipient data that has been completed with validation of NIK and/or NPWP can be shared and utilised for:

  • Prevention of criminal acts of corruption;

  • Prevention of money laundering;

  • Taxation purposes;

  • Updating of identity data in the population data; and

  • Other purposes in accordance with the provisions of the legislation.

Value-added tax and income tax on cellular phones

On September 1 2021, the Directorate General of Taxes (DGT) stipulate Regulation No. PER-18/PJ/2021 (PER-18) regarding “Implementation instruction for collecting VAT and income tax on income/delivery in connection with selling of cellular phone prepaid credit and SIM card starter pack”.

The main points of PER-18 are summarised as follows:

(1) Delivery of cellular phone prepaid credit and starter pack SIM card by:

  • Telecommunication service provider entrepreneur (TSPE) to a distribution operator (DO) and/or telecommunication consumer shall be subject to VAT which is collected by the TSPE;

  • DO of level one to DO and/or telecommunication consumer shall be subject to VAT which is collected by the DO of level one;

  • DO of level two to DO and/or telecommunication consumer shall be subject to VAT which is collected by the DO of level two;

  • DO of the next level to DO and/or telecommunication consumer shall be subject to VAT which is collected by the DO of level two. 

(2) Sales of cellular phone prepaid credit and SIM card starter pack by DO of the second level shall be subject to Article 22 WHT of 0.5%.

(3) Collection of Article 22 WHT shall not apply on payment by DO and/or telecommunication consumers in the following cases:

  • With a maximum amount of Rp2,000,000 ($141,841) excluding VAT and not a split payment of a transaction of which the actual value is more than Rp2,000,000;

  • Banking taxpayer;

  • Already hold and file a copy of income tax certificate based on PP-23/2018, and it is already verified by the information system of the DGT;

  • Already hold and file a copy of letter of exemption from Article 22 WHT in accordance with the provisions;

  • Runs other businesses in addition to selling cellular phone prepaid credit and SIM card starter pack, and placed a deposit with a maximum amount of Rp60,000,000  excluding VAT in one tax period.

Luxury goods sales tax incentive on cars

On September 13 2021, the Minister of Finance (MoF) issued a new Regulation No. 120/PMK.010/2021 (PMK-120) as the second amendment of PMK-31 concerning luxury goods sales tax (LST) incentive on cars.

The highlights of PMK-120 are as follows:

  • LST which is payable on the delivery of automotive vehicles in the form of sedan or station wagon and automotive vehicles for transportation of fewer than 10 persons including the driver, other than a sedan or station wagon whose cylinder content capacity is up to 1,500 cc  and already meeting specific criteria, shall be 100% borne by the government;

  • LST which is payable on the delivery of automotive vehicles for transportation of fewer than 10 persons including the driver other than a sedan or station wagon with cylinder content capacity of more than 1,500 cc up to 2,500 cc and already meeting specific criteria shall be 50% borne by the government;

  • LST which is payable on the delivery of automotive vehicles for transportation of fewer than 10 persons including the driver other than a sedan or station wagon, with two axle drive (4x4) system with cylinder content capacity of more than 1,500 cc up to 2,500 cc and already meeting specific criteria shall be 25% borne by the government.

Entrepreneurs that have already created the September period tax invoices for the delivery of automotive vehicles shall replace the tax invoices using the new rates above. Any excess VAT payment, on the other hand, must be returned to the customers.

This facility of LST borne by the government applies from September to December 2021.

 
I Dewa Made Agung Nugraha

Partner, GNV Consulting

E: dewa.nugraha@gnv.id

 

Erviyanti

Manager, GNV Consulting

E: erviyanti.adam@gnv.id


more across site & shared bottom lb ros

More from across our site

Despite garnering significant revenues from multinationals, Italy’s digital services tax presents pressing double taxation issues, say Stefano Simontacchi and Francesco Saverio Scandone of BonelliErede
ITR’s research shows that in-house tax counsel in Asia also feel underserved by their advisers’ international networks
World Tax global head of research Jon Moore tells ITR how his team spots standout submissions, and gives early statistical insights into this year’s entries
Australia’s conservative opposition will repeal controversial tax agent reporting rules if elected in the country’s May general election
Shapley would be the fourth person to hold the job this year; in other news, UK tax advisory firm MHA raised fewer funds than expected from its London IPO
The US needs to be involved in pillar one for there to be more international acceptance of the project, Michael Masciangelo says
The UK regulator is investigating EY’s auditing of the national postal service as it relates to the high-profile Horizon scandal, which saw hundreds wrongfully convicted
The directive will extend cooperation and information exchange around pillar two, according to the Council of the EU
Audit engagement partner Christopher Voogd has also been hit with a £32,500 charge over the firm’s work with Stirling Water Seafield Finance
China’s largest overhaul of its tax administration system in 24 years, featuring enhanced enforcement powers, is underway, says Abe Zhao of FenXun Partners
Gift this article