GOVERNMENT REGULATION NOMOR 46/2003 DATED AUGUST 13, 2003
THE SECOND AMANDMENT TO GOVERNMENT REGULATION NO. 12/2001 ON IMPORT AND/OR DELIVERY OF CERTAIN STRATEGIC TAXABLE
GOODS EXEMPTED FROM VALUE ADDED TAX THE ORESIDENT OF REPUBLIC OF INDONESIA, Considering:
a. that stipulation of certain strategic taxable goods whose import and/or delivery is exempted from value added tax as set forth in Government Regulation No. 12/2001 on Import and/or Delivery of Certain Strategic Taxable Goods Exempted from Value Added Tax as Amended by Government Regulation No. 43/2002 is temporary;
b. that in the framework of encouraging the development of the business community and enhancing competitiveness by guaranteeing the availability of strategic goods, types of certain strategic taxable goods exempted from the imposition of value added tax have to be reviewed;
c. that based on the considerations set forth in paragraphs a and b, it is necessary to stipulate Government Regulation on Second Amendment to Government Regulation No. 12/2001 on Import and/or Delivery of Certain Strategic Taxable Goods Exempted from Value Added Tax.
In view of:
1. Article 5 paragraph (2) of the 1945 Constitution as amended by Fourth Amendment to the 1945 Constitution;
2. Law No. 6/1983 on Taxation General Provisions and Procedures (Statute Book of 1983 No. 49, Supplement to Statute Book No. 3262) as amended several times and latest by Law No. 16/2000 (Statute Book of 2000 No. 126, Supplement to Statute Book No. 3984);
3. Law No. 8/1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods (Statute Book of 1983 No. 51, Supplement to Statute Book No. 3264) as amended several times and latest by Law No. 18/2000 (Statute Book of 2000 No. 128, Supplement to Statute Book No. 3986);
4. Government Regulation No. 12/2001 on Import and/or Delivery of Certain Strategic Taxable Goods Exempted from Value Added Tax (Statute Book of 2001 No. 24, Supplement to Statute Book No. 4083) as amended by Government Regulation No. 43/2002 (statute Book of 2002 No. 92, Supplement to Statute Book No. 4217).
DECIDES: To stipulate:
Article I
Several provision in Government Regulation No. 12/2001 on Import and/or Delivery of Certain Strategic Taxable Goods Exempted from Value Added Tax as amended by Government Regulation No. 43/2002 are amended as follows:
1. Article 1 paragraph 1 clause a is amended so that the entire Article 1 reads as follows:
“Article 1 In this regulation, the meaning of:
1. Certain Strategic Taxable Goods are:
a. Capital goods in the form of machinery and factory equipment, either in installed or detached condition, not including spare parts;
b. Animal, bird, and fish foods and/or raw materials for the manufacturing of animal, bird, and fish foods;
c. Agricultural produce;
d. Seeds and/or off springs of agricultural, plantation, forestry, animal husbandry, breeding, or fishery products;
e. Deleted; f. Deleted
g. Clean water flowed through pipes by the Tap water company; h. Electricity, except for houses, with power of above 6,600 watt.
2. Agricultural produce is goods produced from business activities in the fields of: a. Agriculture, plantation, and forestry;
b. Animal husbandry, hunt or catch, and breeding; or c. Fishery either from breeding or germination.
3. Farmer is a person who performs business in the field of agriculture, plantation, forestry, animal husbandry, hunt or catch, breeding, fish catch or germination.
2. Article 2 paragraph (1) clause a and paragraph (2) clause a are amended so that the entire Article 2 reads as follows:
“Article 2
1. On import of certain strategic taxable goods in the form of:
a. Capital goods as set forth in Article 1 paragraph 1 clause a required directly in the process of production of taxable goods by taxable entrepreneur producing such taxable goods;
b. Animal, bird, and fish foods or raw materials for the production of animal, bird, and fish foods as set forth in Article 1 paragraph 1 clause b;
c. Seeds and/or germs from agricultural, plantation, forestry, animal husbandry, breeding, or fishery goods as set forth in Article 1 paragraph 1 clause d; d. Deleted;
e. Deleted;
a. Capital goods as set forth in Article 1 paragraph 1 clause a required directly in the process of production of taxable goods;
b. Animal, bird, and fish foods or raw materials for the production of animal, bird, and fish foods as set forth in Article 1 paragraph 1 clause b ;
c. Agriculture produce as set forth in Article 1 paragraph 1 clause c, by farmers or group of farmers;
d. Seeds and/or germs from agricultural, plantation, forestry, animal husbandry, breeding, or fishery goods as set forth in Article 1 paragraph 1 clause d; e. Deleted;
f. Deleted
g. Clean water flowed through pipes by the Tap Water Company as forth in Article 1 paragraph 1 clause g; and
h. Electricity, Except for houses, with power of above 6,600 watt as set forth in Article 1 paragraph 1 clause h;
Shall be exempted from the imposition of value added tax.
3. Article 4 is amended so that it reads as follows:
“Article 4
1. In case that certain strategic taxable goods as set forth in Article 1 paragraph 1 clause exempted from the imposition of value added tax are, in fact, used not in accordance with their purpose or are transferred to another party partly or wholly within five (5) years from import and/or acquisition, the value added tax, which has been exempted, must be paid within a period of one (1) month since change of usage or transfer of such goods.
2. If, within a period of one (1) month as set forth in paragraph (1) value added tax, which has been exempted, has not been paid, the Director General of Tax shall issue a tax assessment letter for underpaid taxes plus sanctions in accordance with the applicable laws.
3. Paid value added tax as set forth in paragraph (1) can not be credited in the incoming tax post.”
Article II
This regulation comes into full force and effect from the date of enactment.
For public cognizance, this government regulation shall be promulgated by placing it in Statute Book of the Republic of Indonesia.
Stipulated in Jakarta On August 13, 2003
MEGAWATI SOEKARNOPUTRI
ELUCIDATION ON
GOVERNMENT REGULATION NO. 46/2003
ON
THE SECOND AMENDMENT TO GOVERNMENT REGULATION NO. 12/2001 ON IMPORT AND/OR DELIVERY OF CERTAIN
STRATEGIC TAXABLE GOODS EXEMPTED FROM VALUE ADDED TAX
GENERAL
In order to enforce the provision in Article 16B of Law No. 8/1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods as amended several times and latest by Law No. 18/2000, Government Regulation No. 12/2001 on Import and/or Delivery of Certain Strategic Taxable Goods Exempted from The Imposition of Value Added Tax as amended by Government Regulation No. 42/2002 has been stipulated.
The Government Regulation has stipulated types of strategic taxable goods exempted from the imposition of value added tax. The grant of this tax facility is temporary. In the framework of boosting the growth of business community and enhancing competitiveness by guaranteeing the availability of strategic goods, types of strategic taxable goods exempted from the imposition of value added tax has to be reviewed.
ARTICLE BY ARTICLE Article I
Paragraph 1 Article 1
Self-explanatory
Paragraph 2 Article 2 Paragraph (1)
Self-explanatory Paragraph (2)
Clauses a and b
Agricultural produce exempted from the imposition of value added tax are agriculture goods plucked directly, taken directly or incised directly from their sources, including results of their processing done by:
- Dried by being dried in the sun or by other method; - Minced;
- Salted;
- Frozen or cooled; - Smashed;
- Washed or pest-freed; - Soaked and boiled;
- Sliced, removed, and cracked; - Ripened;
- Scratched;
- Divided from their or seeds or leaves; or
- Packed in a simple way for the purpose to protect such goods delivered by farmers or group of farmers.
Clauses d-f:
Self-explanatory Clause g
The meaning of “Tap Water Company is the tap water company owned by the government and/or private sector.
“Clean water flowed through pipes by Tap Water Company, whose delivery is exempted from the imposition of value added tax, is clean water delivered in another way, such as through water tank car.
Clause h
Self-explanatory Paragraph 3
Article 4 Paragraph (1)
In a bid to prevent the misuse of import and/or delivery of capital goods in the from of machinery and factory equipment, already securing exemption from value added tax based on this regulation, this regulation rules about sanction imposed in importers or buyers of capital goods in the from of machinery and factory equipment, which are in fact, not in accordance with their purpose or are transferred to other parties partly or wholly.
Paragraph (2) and (3) Self-explanatory Article II
