Wednesday, 15 January 2020 09:54

The Enactment of Ministry of Finance’s Decree Number 199 year 2019 on 30th January 2019

As per 30th January 2020, the government will enact regulation of the Minister of Finance (ministerial decree) Number 199 year 2019 regarding Customs, Excise and Taxes on the Shipment Import:
1. The government lowered the limit on the value of exemption from import duties on shipments from US $75 to US $3 (equivalent to Rp 42,000 if the exchange rate is Rp 14,000 per US $)
2. The tax collection in the framework of import (PDRI) applies normally or fixed. Besides, the government cut tariffs from 27.5% to 37.5% (with details of Import Duties of 7.5%, VAT 10%, Income Tax 10% with Tax Identification Number (NPWP), and 20% Income Tax without NPWP) to only 17.5% with details Import duties of 7.5%, VAT 10% and Income Tax 0%.
Director of International Customs and Interagency Directorate General of Customs and Excise Ministry of Finance (DJBC Ministry of Finance) Syarif Hidayat explained that the government still paid special attention to the input of craftsmen, especially producers of goods that are high-demanded and have a big market abroad, as such products of bags, shoes, and garment.
Seeing these impacts, the government did not rationalize the three products. The import duty is 15% - 20% for bags, 25% - 30% for shoes, and 15% - 25% for textile products. VAT at 10%, and Income Tax at 7.5% to 10%. With this new regulation which facilitates for exempting import duties for shipment (de minimus value) believed it can encourage people to use more of domestic products.
The application of this tariff is also expected to create fair treatment in the taxation or level playing field. In this case, the majority of domestic products are from Small and Medium Enterprises (SME’s) and taxed with imported products through shipment and distributor imports via general cargo.
Syarif hopes that all parties obey this rule. Specifically, the courier service company (PJT) for not committing any kinds of violation; these include splitting or notifying the price under transaction value (under invoicing).

As for example, purchasing goods via e-commerce:
- Buying goods worth US $ 10 or the equivalent of Rp 140,000
- Shipping cost US $15 (exchange rate of IDR 14,000 per US $)
- The value of goods: (US $10 + US $15) x Rp 14,000 = Rp 350,000
- Import duty = import duty x value of goods (7.5% x IDR 350,000 = IDR 26,250)
- Value of import = value of goods + import duty (IDR 350,000 + IDR 26,250 = IDR 376,250)
- VAT: VAT rate x import value (10% x Rp 376,250 = Rp 37,625)
- Income Tax = Income Tax x Value of Imports (10% x IDR 376,250 = IDR 37,625)
- Total to be paid: import value + VAT + Income Tax (Rp. 376,250 + Rp. 37,625 + Rp. 37,625 = Rp. 451,500)
As a result, to buy valued IDR 140,000 of goods, after calculating the import value, import duty, VAT and income tax, the goods you pay will be IDR 451,500.
(Translated by IBAI Secretariat)


Source:
https://nasional.kontan.co.id/news/ingat-mulai-30-januari-nilai-batasan-impor-bebas-bea-masuk-cuma-us-3-per-kiriman

 

 

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