Following Indonesia’s ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (the BEPS Multilateral Instrument) in 2019, President Widodo has issued Presidential Regulation No. 63 of 2024, which updates the reservations in the previous presidential regulation, No. 77 of 2019.
These new reservations have expanded the list of ratified parties covered by the convention to 13 countries; namely, Austria, Belarus, Germany, Jordan, Kuwait, Mongolia, Morocco, Papua New Guinea, Singapore, Sri Lanka, Tunisia, Ukraine, and the United Arab Emirates.
The BEPS Multilateral Instrument allows governments to modify existing bilateral tax treaties in a synchronised manner to implement the tax treaty measures. Therefore, the updates should be noted when applying the articles of the relevant tax treaties.
This new presidential regulation became effective on June 13 2024.
Updated export duty rates for metal mineral products
To support the downstreaming policy for metal mineral products, the minister of finance of the Republic of Indonesia (MoF) has issued Minister of Finance Regulation No. 38 of 2024 (MoF-38) concerning the Determination of Export Goods Subject to Export Duties and Export Duty Rates. MoF-38 replaces MoF Regulation No. 39/PMK.010/2022 and its latest amendment, MoF Regulation No. 71 of 2023 (MoF-71).
MoF-38 has simplified and consolidated the previous related regulations. Thus, the norms and procedures in effect until the issuance of MoF-71 remain the same, except for the determination of export duty rates on processed metal mineral products, which are no longer based on the physical progress of the construction of refining facilities. The new export duty rates are directly stipulated in the annex of MoF-38 as follows:
No. | Description | Included in rate bracket | Export duty rate (%) |
1 | Copper concentrate with Cu content ≥15% | Ex 2603.00.00 | 7.5 |
2 | Laterite iron concentrate (goethite, hematite, magnetite) with Fe content ≥ 50% and (A12O3+SiO2) content ≥ 10% | Ex 2601.11.10 Ex 2601.11.90 Ex 2601.12.10 Ex 2601.12.90 | 5 |
3 | Lead concentrate with Pb content ≥ 56% | Ex 2607.00.00 | 5 |
4 | Zinc concentrate with Zn content ≥ 51% | Ex 2608.00.00 | 5 |
MoF-38 was issued on May 31 2024 and has been effective since June 3 2024.
Administration timeline of NIKs, 16-digit NPWPs, and NITKUs
The Directorate General of Taxes (DGT) has issued Regulation No. PER-6/PJ/2024 (PER-6) to provide legal certainty and sufficient time for taxpayers to prepare their tax administration systems using:
National identification numbers (NIKs);
The 16-digit taxpayer identification number (16-digit NPWP) format; and
The business activity location identification number (NITKU).
The salient points of PER-6 are as follows:
The types of administrative systems that can use NIKs, 16-digit NPWPs, and the NITKU from July 1 2024 are e-Registration, DJP Online profile accounts, KSWP information, e-Bupot 21/26, e-Bupot Unification, e-Bupot government agencies, and e-Objection;
For government bodies or agencies that provide public or non-public administration services and are not yet ready with the new system, the 15-digit NPWP will remain valid until December 31 2024;
The format of tax documents such as forms, assessments, and decisions will be gradually adjusted according to the system conditions of the DGT and other parties; and
New taxpayers or NPWPs issued on an ex officio basis shall use the NIK as an NPWP, a 16-digit NPWP, and a NITKU along with the old 15-digit NPWP.
This new regulation took effect on July 1 2024.
