GOVERNMENT REGULATION NO. 144/2000 DATED DECEMBER 22, 2000
KINDS OF GOODS AND SERVICES NOT SUBJECTED TO VALUE ADDED TAX
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
Considering :
that in the framework of implementing Article 4A of Law No. 8/1983 on value added tax on goods and services and sales tax on luxury goods as already amended the latest by Law No. 18/2000, it is necessary to stipulate a government regulation on the kinds of goods and services not subjected to value added tax.
In view of :
1. Article 5 paragraph (2) of the Constitution of 1945 as already amended by the Second Amendment to the Constitution of 1945;
2. 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 already several times amended the latest by Law No. 18/2000 (Statute Book of 2000 No. 128, Supplement to Statute Book No. 3986).
D E C I D E S :
To stipulate :
THE GOVERNMENT REGULATION CONCERNING THE KONDS OF GOODS AND SERVICES NOT SUBJECTED TO VALUE ADDED TAX.
Article 1
The category of goods not subjected to value added tax shall cover : a. mining or drilling products directly extracted from their sources;
b. basic necessities badly required by the public at large;
c. foods and drinks served at hotels, restaurants, cafes, foods stalls and the like; and d. money, gold ingots and negotiable instruments.
Article 2
The kinds of mining or drilling products directly extracted from their sources as meant in Article 1 point a shall be :
a. crude oil; b. natural gas;
c. geothermal energy; d. sand and gravel;
e. coal before being processed into coal brickettes; and
f. ores of iron, tin, gold, copper, nickel and silver as well as bauxite.
Article 3
The kinds of basic necessities badly required by the public at large as meant in Article 1 point b shall be: a. rice;
b. unhusked rice; c. corn;
e. soybeans; and
f. salt, iodised and non-iodised.
Article 4
The kinds of foods and drinks served at hotels, restaurants, cafes, food stalls and the like as meant in Article 1 point c shall be those consumed in relevant places or not, excluding foods and drinks delivered by catering services.
Article 5
The category of services not subjected to value added tax shall cover : a. services in the health/medical field;
b. services in the social field;
c. services in mail delivery with stamps;
d. services in banking, insurance, and financial leasing; e. services in the religious field;
f. services in education;.
g. services in arts and entertainments already subjected to entertainment tax; h. services in broadcasting other than commercials;
i. services in public transport on land and in waters; j. services in manpower;
k. services in hotel business; and
l. services provided by the government in the framework of public administration in general.
Article 6
The kinds of services in the health/medical field as meant in Article 5 point a shall be: a. services of general practitioners, medical specialists and dentists;
b. services of veterinary surgeons;
c. services of health experts like acupuncturists, dental prosthetic experts, nutritionists and physiotherapists; d. services of obstetricians and midwives;
e. services of paramedics and nurses; and
f. services of hospitals, maternity hospitals, health clinics, health laboratories and sanatoriums.
Article 7
The kinds of services in the social fields as meant in Article 5 point b shall be: a. services of orphanages and old-age homes;
b. services of fire fighting except commercial ones; c. services of first aid;
d. services of rehabilitation institutes except commercial ones; e. services of funeral including cremation; and
f. services of sports except commercial ones.
Article 8
The kinds of services in banking, insurance and financial leasing as meant in Article 5 point d shall be: a. banking services in line with the provisions as stipulated in Law No. 7/1992 on the banking system as
already amended by Law No. 10/1998 except services of safe custody for goods and securities, safe-deposits for other parties based on contracts, and factoring;
c. services of financial leasing.
Article 9
The kinds of services in the religious field as meant in Article 5 point e shall be: a. services of worship buildings;
b. services of preachers; and c. other religious services.
Article 10
The kinds of services in education as meant in Article 5 point f shall be:
a. services of school education like general education, vocational education, extraordinary education, official education, religious education, academic education and professional education; and
b. services of informal education like courses.
Article 11
The kinds of services in arts and entertainments already subjected to entertainment tax as meant in Article 5 point g shall include services in non-commercial arts like traditional art performances free of charge.
Article 12
The kinds of services in broadcasting other than commercials as meant in Article 5 point h shall be radio or television broadcasting by government or private agencies other than commercials and not financed by sponsors for commercial purposes.
Article 13
The kinds of services in public transport on land and in waters as meant in Article 5 point i shall be land, sea, lake and river public transport services provided by the government or private companies.
Article 14
The kinds of services in manpower as meant in Article 5 point j shall be: a. labour services;
b. labour supply services as long as supplier companies are not responsible for the result of work the labour supplied;
c. manpower training services.
Article 15
The kinds of services in hotel business as meant in Article 5 point k shall be:
a. services of renting rooms including annexes in hotels, inns, motels, lodging houses, hostels and facilities related to hotel activities for guests staying overnight; and
b. services of renting rooms for ceremonies or meetings in hotels, inns, motels, lodging houses and hostels.
Article 16
Article 17
Further provisions required for the implementation of this government regulation shall be stipulated by a decree of the Minister of Finance.
Article 18
This government regulation shall come into force as from the date of promulgation.
For public cognizance, this government regulation shall be promulgated by publishing it in the Statute Book of the Republic of Indonesia.
Stipulated in Jakarta On December 22, 2000
THE PRESIDENT OF THE REPUBLIC OF INDONESIA sgd.
ABDURRAHMAN WAHID
Promulgated in Jakarta On December 22, 2000 THE STATE SECRETARY, sgd.
DJOHAN EFFENDI
ELUCIDATION OF GOVERNMENT REGULATION NUMBER 144/2000 CONCERNING
KINDS OF GOODS AND SERVICES NOT SUBJECTED TO VALUE ADDED TAX
GENERAL
In line with the principle of value added tax as consumption tax within customs areas, the imposition of value added tax basically covers all deliveries of goods and services. However, on the basis of social, economic and cultural considerations it is deemed necessary not to impose value added tax on certain goods and or services. This is intended to boost economic activities and social stability.
In this connection, this government regulation stipulates the kinds of goods and services which are not subjected to value added tax.
ARTICLE BY ARTICLE Article 1
Sufficiently clear
Article 2 Point a
Sufficiently clear Point b
Excluded from natural gas are those ready for direct consumption by society such as liquefied petroleum gas.
Point c through f
Sufficiently clear
Articles 3 through 5 Sufficiently clear
Article 6
Included in health/medical services are those of alternative healers, psychologists and paranormal practitioners.
Articles 7 through 12 Sufficiently clear
Article 13
Public transport services on land and in waters are not subjected to value added tax whereas air transport services are. However, foreign air transport services are not subjected to value added tax because they are delivered outside customs areas.
Included in foreign air transport services are domestic air transport services as inseparable part of foreign air transport services.
