CIRCULAR OF THE DIRECTOR GENERAL OF TAXATION NO. SE-12/PJ.5/2001 DATED MAY 14, 2001
TREATMENT OF PET FACILITIES AFTER THE ENFORCEMENT OF THE DECREE OF THE MINISTER OF FINANCE NO. 50/KMK.04/2001 To :
1. Heads of Regional Offices, Directorate General of Taxation; 2. Heads of Tax Service Offices;
3. Heads of Tax Audit and Investigation Offices;
4. Heads of Tax Counseling Offices throughout Indonesia
In connection with many questions about the treatment of the designated exporter (PET) facilities after the issuance of the Decree of the Minister of Finance No. 50/KMK.04/2001 on the revocation of the Decree of the Minister of Finance No. 548/KMK.04/1997 concerning the imposition of value added tax as high as 0% (nil percent) which is accelerated on exports by Designated Exporters (PET) and provisions on their restitution process, the following affirmations are provided :
1. Pursuant to the Decree of the Minister of Finance No. 50/KMK.04/2001, the PET facilities as stipulated in the Decree of the Minister of Finance No. 548/KMK.04/1997 are declared ineffective as from February 1, 2001. As a result, the delivery of taxable goods and/or the provision of taxable services to Taxable Entrepreneurs being Designated Exporters (PET PKP) as from February 1, 2001 are/is subjected to Value Added Tax as stipulated in Article 7 of Law No. 8/1983 on value added tax on goods and services as well as sales tax on luxury goods as already amended by Law No. 18/2000.
2. The delivery of taxable goods in the form of raw materials and/or auxiliary materials and/or taxable services to PKP PET in January 2001 which are used for producing taxable goods to be exported, still obtains Value Added Tax as high as 0% (nil percent) which is accelerated.
3. Any application for restitution of PKP PET and/or taxable entrepreneurs being suppliers of services and/or raw materials and/or auxiliary materials to PKP PET which are imported as from February 1, 2001 is processed in accordance with the provisions in the Decision of the Director General of Taxation No. 160/PJ./2001 on the procedure for restitution of overpaid value added tax and/or overpaid sales tax on luxury goods and the Circular of the Director General of Taxation No. SE-05/PJ.33/2001 dated February 28, 2001 on the deadline of settlement of restitution of overpaid tax.
4. Heads of Tax Service Office are instructed to audit former PKP PET in connection with the facilities of imposition of Value Added Tax as high as 0% (nil percent) which is accelerated on the delivery of taxable goods and/or the provision of taxable services to PKP PET. If the taxable goods and/or taxable services subjected to the tariff of 0% (nil percent) which is accelerated turn out not to be used for producing taxable goods which are exported, the value added tax due and sanctions are re-collected in accordance with the provisions in force.
This is for your proper implementation and dissemination.
THE DIRECTOR GENERAL sgd.
HADI POERNOMO
Copies of this circular are made available to : 1. Secretary General of the Ministry of Finance
2. Secretary General of the Ministry of Industry and Trade 3. Inspector General of the Ministry of Finance
4. Head of the Legal Affairs and Public Relations Bureau, Ministry of Finance 5. Secretary General of the Directorate General of Taxation
