March 2020

Tax Alert Draft Tax Omnibus Law

On 31 January 2020, the Indonesian Government submitted a draft of the Law of Provisions
and Tax Facilities to Encourage the Economy (“Tax Omnibus Law”) to the Parliament. It is
expected that the draft law will be discussed in the 2020 Priority National Legislation Program
between the Government (represented by the Finance, Home Affairs, and Legal and Human Rights
Ministries) and the Parliament.

The Tax Omnibus Law, if passed, would be the most significant change to the Indonesian tax
system in some time, noting that it has been over 10 years since the last amendments to the
three key Indonesian tax laws. The proposed changes would have implications for any business
operating in Indonesia, as well as many foreign entities making web-based or electronic sales to
Indonesian customers. On the whole, Indonesian taxpayers are likely to welcome the changes,
given they contain a number of ‘fixes’ to long-standing concerns with the Indonesian system, pro-
business measures and a significant corporate tax rate cut.

This is balanced against a clear desire to levy tax on online businesses currently operating without
an Indonesian taxable presence.

This Tax Alert provides an overview of key proposed changes. The final form of legislation passed
by the Parliament will need to be reviewed in detail in due course.

Draft Tax Omnibus Law | 1

 There will be at least nine laws that will be affected by the Tax Omnibus Law. Interestingly, many
substantive changes will not be inserted into these other laws, but the Tax Omnibus Law would
change their operation. They are:

1. Law on General Provision and Taxation Procedures (“UU KUP”);

2. Income Tax Law (“UU PPh”);

3. Value Added Tax (VAT) Law (“UU PPN”);

4. Customs Law (“UU Kepabeanan”);

5. Excise Law (“UU Cukai”);

6. Law on Information and Electronic Transaction (“UU ITE”);

7. Capital Investment Law (“UU Penanaman Modal”)

8. Law on Regional Tax and Regional Levy (“UU PDRD”); and

9. Regional Government Law (“UU Pemerintah Daerah”)

The Government states that the Tax Omnibus Law is designed to strengthen the Indonesian
economic sector by way of providing tax facilities that are expected to increase investment,
improve fairness and equality in conducting business, as well as to improve the quality of human
resources.

We have summarized key aspects of the draft Tax Omnibus Law into broad categories consistent
with the approach taken in the authorities’ press releases and some media reporting:

A. For the purpose of increasing the attractiveness of Indonesia as an investment

destination country

1. Reduction in the corporate income tax rate

a) The current income tax rate for a corporate taxpayer or permanent establishment
(PE) of 25% will be decreased to 22% for fiscal years 2021 and 2022; and further
decreased to 20% starting fiscal year 2023;

b) For a domestic corporate taxpayer with public company status, where at least 40%
of its total shares are traded in the Indonesia Stock Exchange (IDX), could have
a further decrease in the corporate income tax rate of 3%, so that its corporate
income tax rate is 19% for fiscal years 2021 and 2022; and 17% starting fiscal year
2023.

With the reduction of the corporate income tax rate, the rate of withholding tax (“WHT”),
as prepaid tax credit (i.e. Article 22 on import, and Article 23 WHT on domestic interest
and royalty) may need to be revisited. Otherwise, the likelihood of tax overpayment will
increase.

2. Elimination of income tax on dividend and other offshore income

The draft provides for new exemptions for dividends (Indonesian and foreign sourced)
and certain foreign-sourced income where that income is re-invested in Indonesia. The
procedures to qualify for these exemptions and timeframes for reinvestment are to be set
by a subsequent Minister of Finance regulation – these will be vital to understanding the
practical utility of the new rules.

a) Exempt from income tax dividends received by domestic corporate and individual
taxpayers from a domestic company, provided such dividend is re-invested within
Indonesia for a certain period of time. This will replace the existing exemption for
Indonesian corporates receiving dividends from an Indonesian company in which it
holds at least 25% of shares. It remains to be seen how intercorporate dividends will
be dealt with under the proposed reinvestment exception.

b) Exempt from income tax dividends received by domestic corporate and individual
taxpayers from an offshore company, whether or not the offshore company is
publicly listed, as well as from after tax profit from an offshore PE, provided such
dividend is re-invested within Indonesia for a certain period of time.

2 | Draft Tax Omnibus Law

 c) For dividends received from an offshore private company and the after-tax profit
of an offshore PE, a partial or full tax exemption will be available, depending
on the extent to which the dividend or PE profits are reinvested in Indonesia. It
appears that 70% of the dividend or PE profits should be non-taxable in all cases.
The remaining 30% will be also non-taxable to the extent there is reinvestment in
Indonesia. For example, on our reading, for a foreign dividend of $100, where
a taxpayer can show reinvestment of $22, only $8 would be included in taxable
income.

A participation and branch profits exemption of this kind would represent a

significant shift in the Indonesian cross-border taxation regime. Various existing
regulations including on controlled foreign companies and foreign tax credits may
need to be revamped and those implementing changes understood before the full
impacts can be appreciated. It may be these rules are only intended to dictate the
timing of deemed dividends from CFCs, and relief where there is reinvestment.

d) Exempt from income tax offshore income received by domestic corporate and
individual taxpayers from non-PE offshore business, provided such income is
re-invested within Indonesia for a certain period of time and meet the following
conditions:

(i) Income is derived from an active offshore business; and

(ii) It is not income derived from an overseas subsidiary.

e) From a foreign tax credit perspective, foreign income tax that has been withheld on
the above forms of exempt income:

(i) Cannot be credited against income tax payable;

(ii) Cannot be treated as expense or deduction against income; and

(iii) Cannot be refunded.

3. Reduction in the Article 26 interest withholding tax (WHT) rate

The draft provides for a reduction in the Article 26 interest WHT rate from the current
tax rate of 20%, to be regulated by a future Government Regulation. The reduction of the
Article 26 WHT rate would apply to interest, including premium, discount and guarantee
fee.

4. Regulation on certain tax facilities, i.e. tax holiday, tax allowance, super deduction,
regional tax facility, special economic zone (SEZ)

As flagged in previous announcements, the Tax Omnibus Law would bring together
various existing incentives under a common legal framework. The proposed tax facilities
are as follows:

a) An income tax facility in the form of a reduction or an exemption from income

tax can be given to a domestic corporate taxpayer that conducts:

(i) Capital investment in pioneer industries (i.e. tax holiday);

(ii) Capital investment for main business sectors within the SEZ;

(iii) Development and management of industrial area in a certain industrial

area; or

(iv) Capital investment in a certain industrial area.

b) An income tax facility in the form of a reduction of gross revenue can be given
to a domestic corporate taxpayer in relation to its expenses for:

(i) Apprenticeship, internship, and/ or teaching activities to coach and

develop human resources based on certain competencies (i.e. super
deduction for a maximum of 200% of expenses disbursed); and/ or

(ii) Certain research and development activities in Indonesia for certain

period of time (i.e. super deduction for a maximum of 300% of
expenses disbursed).

Draft Tax Omnibus Law | 3

 c) An income tax facility in the form of a reduction on net revenue for a maximum
of 60% of the capital investment amount can be given to a domestic corporate
taxpayer that conducts capital investment in certain labor-intensive business
sectors.

d) Income tax facility that can be given to domestic corporate taxpayer that
developed and managed a SEZ, to domestic corporate taxpayer that invest in a
SEZ, or to domestic corporate taxpayer that invest in a special industrial zone.
The income tax facilities are in the form of:

(i) Reduction of net revenue for a maximum of 30% of the total capital
investment;

(ii) Accelerated depreciation and amortization;

(iii) Carry forward tax loss period that is longer than 5 years but no longer
than 10 years;

(iv) A reduced tax rate of 10% for dividend paid to non-residents (or the
applicable tax treaty rate);

The above facilities are for capital investment in the main business activities
or for other activities within the SEZ.

e) Income tax facility in relation to foreign currency denominated Government

securities that are traded in the international market. This income tax facility
can be given in the form of exemption or reduction of income tax on:

(i) Interest and discount of Government securities that are traded in the
international market; and

(ii) Third party’s service fee for the issuance and/ or repurchase/ exchange
of Government securities on the international market.

f) Regional tax facility to support the national economy. The tax facility that can
be given is in the form of relief, reduction and/ or exemption of regional tax.

g) Taxpayers that invest in certain business sectors and/ or in certain regions,

which are given high priority in the national scale can be given tax allowance
incentive.

B. For the purpose of improving fairness and equality in conducting business

1. Digital transaction tax imposed by offshore seller or marketplace

The draft Tax Omnibus Law provides for a marked shift in the taxation of electronic
or online sales by non-Indonesian parties into Indonesia. Combined with the 2019
regulation on e-commerce, a full suite of mechanisms to tax these transactions would
be put into place under the proposed provisions. However, the implementation of these
measures is dependent on further implementing regulations.

a) Income tax and VAT imposition on Trading Through Electronic System (“PMSE”)
conducted by domestic taxpayer will continue to follow the normal provisions of
the Income Tax Law and the VAT Law.

b) VAT imposition on the utilization of intangible taxable goods and/ or taxable

services from outside of Indonesia Customs Area (“ICA”) within ICA through
PMSE are as follows:

(i) In principle, the VAT imposition will follow the provisions of VAT Law.

(ii) VAT that is imposed on the utilization of intangible taxable goods and/
or taxable services from outside ICA within ICA is collected, paid and
reported by offshore seller, offshore service provider, offshore Trading
Organizer Through Electronic System (“PPMSE”), and/ or local PPMSE,
appointed by the Minister.

4 | Draft Tax Omnibus Law

 (iii) Offshore seller, offshore service provider and/ or offshore PPMSE
can appoint an agent/ representative in Indonesia to collect, pay and
report the VAT payable.

(iv) Offshore seller is an individual or a corporate residing outside of the

ICA that conducts a transaction with the goods purchaser within the
ICA via electronic system.

(v) Offshore service provider is an individual or a corporate residing

outside of the ICA that conducts a transaction with a service user
within the ICA via electronic system.

(vi) The procedures to appoint, collect, pay and report the VAT will be
further regulated by the Minister Regulation.

c) Imposition of income tax or Electronic Transaction Tax (“ETT”) on PMSE

activities conducted by offshore taxpayers who met certain criteria:

(i) Offshore seller, offshore service provider and/ or offshore PPMSE

meeting the significant economic presence criteria, can be treated as a
permanent establishment (”PE”) and subject to income tax.

(ii) Significant economic presence can be in the form of:

• Consolidated business group turnover over a certain amount;

• Sales in Indonesia up over a certain amount; and/ or

• Active users of digital media in Indonesia over a certain

number.

(iii) In case income tax cannot be imposed due to the application of tax
treaty, the offshore seller, offshore service provider, and/ or offshore
PPMSE meeting the significant economic presence criteria will be
imposed with ETT.

(iv) ETT is imposed on the sale of goods and/ or services from outside
Indonesia through PMSE to the buyer or the user in Indonesia, which
is conducted by an offshore taxpayer, whether directly or via offshore
PPMSE.

(v) Income tax or ETT is paid and reported by offshore seller, offshore
service provider and/ or offshore PPMSE.

(vi) An offshore seller, offshore service provider, and/ or offshore PPMSE

can appoint an agent/ representative residing in Indonesia to fulfil the
income tax or ETT obligations.

(vii) The amount of rate, tax base and the procedure to calculate income
tax and ETT will be further regulated by Government Regulation.

(viii) The provisions regarding significant economic presence criteria,

procedures on how to pay and report the income tax or ETT, as well
as the procedures to appoint an agent will be further regulated by
Minister Regulation.

Many aspects of any eventual implementation of the rules will depend on the issuance
of implementing regulations. It remains to be seen whether, and if so for how long,
Indonesia will seek a multilateral resolution to these issues before implementing the
above unilateral approach.

Draft Tax Omnibus Law | 5

 2. Central Government to stipulate a single regional tax rate

a) At present, different regions may set various tax rates on the regional taxes. The
draft provides that the Central Government can stipulate one tax rate for regional
tax and regional levy, to be implemented nationally; and

b) Central Government can monitor and evaluate the regional tax and regional levy,
which prevents ease of doing business.

3. The Government can add or reduce the types of goods subject to excise

The addition or reduction on the type of goods subject to excise will be further regulated
by Government Regulation.

C. For the purpose of improving the quality of human resources

To accelerate innovation, the Government would like to increase number of experts and
professionals from overseas to work in Indonesia. Therefore, the Government proposes
to change the taxation of certain individuals from a worldwide income into a territorial
basis. However, the draft would also introduce a nationality concept to the definition of tax
residency, potentially making it more difficult for an Indonesian citizen to break tax residency.

1. Income tax imposition for Indonesian citizens residing outside of Indonesia

The income tax residency rules for Indonesian citizens residing outside of Indonesia for
more than 183 days within 12-month period are:

a) The individuals are generally treated as resident taxpayers;

b) The individuals can be treated as non-resident taxpayers if they met certain

conditions such as: place of residency, place of main activity, place of habitual
abode, tax subject status and/ or other certain conditions.

2. Income tax imposition for foreign citizens residing in Indonesia

Income tax imposition for foreign citizens residing in Indonesia for more than 183 days
within 12-month period are:

a) The individuals are treated as resident taxpayers and any of their income earned
or received from both Indonesia or outside of Indonesia is subject to income tax;

b) The individuals can be subject to income tax only on their income earned or
received in Indonesia (i.e. on a territorial basis) if:

(i) They have certain expertise skill (to be determined under a ministerial
regulation); and

(ii) It is within four years since starting to be a resident taxpayer.

c) Included in the definition of income earned or received from Indonesia as

stated in 2(b) by foreign citizens are income earned or received in relation to
employment, services or activities carried out in Indonesia in whatever name or
form that are paid outside of Indonesia.

d) The territorial approach is not applicable for foreign citizens that utilize benefits
under a tax treaty between Indonesia and the treaty partner country in respect
of income from outside of Indonesia.

6 | Draft Tax Omnibus Law

D. For the purpose of encouraging voluntary compliance

To increase voluntary compliance, the Government intend to revise some areas of tax,
customs and excise administration:

1. The provisions on creditable input VAT

The provisions on creditable input VAT will be made more flexible, which we expect will
be welcomed by many taxpayers, in the following situations:

a) Creditable input VAT that has not yet been credited against output VAT in the
same tax period: the input VAT can be credited up to three tax periods after
the end of the tax period when the VAT invoice was made, provided it is not
yet expensed and not yet capitalized in the taxable goods or taxable services’
acquisition costs.

b) Input VAT on purchases before the entrepreneur is confirmed as a VAT-able

Entrepreneur: the input VAT can be credited up to 80% of the output VAT that
should be collected. This should simplify the claiming of input VAT in prior to
processing the VAT registration, which is currently not possible under existing
rules. However, identification is needed as to output VAT of which tax period.

c) Input VAT on the acquisition of taxable goods and/ or taxable services, for
which the VAT invoice does not met the formal requirements as stated in
Article 13(5)(b) of the VAT Law: the input VAT can be credited by individual
VAT-able Entrepreneur provided the name and the ID number (“NIK – Nomor
Induk Kependudukan”) of the taxable goods purchaser or the taxable services
receiver is stated in the VAT invoice and the input VAT meets the requirements
of creditable input VAT;

d) Input VAT on purchases which are not reported in the monthly VAT return
but are voluntarily disclosed and/ or found during a tax audit: the input VAT
can be credited by a VAT-able Entrepreneur provided the input VAT meets the
requirements of creditable input VAT. This should provide for more equitable
VAT outcome in a tax audit context;

e) Input VAT on purchases, which are assessed by tax assessment letter:

the input VAT that can be credited is the VAT amount (without penalties
and interest) that is stated in the tax assessment letter, provided the tax
assessment is paid and any legal challenges are no longer being pursued, and
the input VAT meets the requirements of creditable input VAT; and

f) Input VAT on purchases for a VAT-able Entrepreneur in a pre-operating phase:

(i) The input VAT can be credited provided it meets the requirements of
creditable input VAT;

(ii) If in a tax period, the creditable input VAT is higher than the output
VAT, the difference is an overpaid tax that can be compensated to the
following tax period and can be refunded at the end of the financial
year.

(iii) In case within three years after the first time the input VAT was
credited, the VAT -able Entrepreneur is not yet conducting any delivery
of taxable goods and/ or taxable service and/ or export of taxable
goods and/ or taxable service in connection with the said input VAT,
the input VAT that has been credited within those three years become
un-creditable, and refunds may need to be returned to the State. The
three-year timeframe can be extended for certain business sectors.

(iv) The three-year un-creditable timeframe is also applicable for VAT-

able Entrepreneur who conduct a business liquidation, revocation of
VAT-able Entrepreneur status, or revocation of VAT-able Entrepreneur
status ex-officio, within three years after the first time the input VAT
was credited.

Draft Tax Omnibus Law | 7

 However, the wordings and the examples given seem to suggest that there must be
a direct correlation between the output and the input VAT for the input VAT to be
creditable. For example, input VAT on a machine purchased by a footwear company
to produce sandals but the company later produced only sarongs and never produced
sandals within the 3-year prescribed period, the input VAT on the machine to produce
sandals then cannot be credited.

2. Interest penalty for tax that refers to a market interest rate

The draft proposes a change from the existing penalty of 2% per month interest, with a
24-month cap. The proposal is for various rates of interest penalty for tax, all of which
are calculated based on monthly interest rate determined by the Minister of Finance, but
which carry different premiums depending on the situation. They apply for a maximum
of 24 months, with part of a month calculated as one month:

a) Based on the benchmark interest rate divided by 12, applicable to:

(i) Late payment of tax underpayment based on underpayment tax

assessment letter or additional tax assessment letter;

(ii) Late payment of tax underpayment based on correction assessment

letter, tax objection letter, appeal decision or judicial review decision;

(iii) Tax underpayment based on tax installment or tax deferment decision;

(iv) Tax underpayment based on the difference between the tax payable
in the extension of annual tax return and the tax payable in the final
annual tax return.

b) Based on the benchmark interest rate plus 5% and divided by 12, applicable to:

(i) Late payment of tax payable based on monthly tax return;

(ii) Late payment of tax payable based on annual income tax return;

(iii) Tax underpayment due to amendment of annual tax return;

(iv) Tax underpayment due to amendment of monthly tax return;

(v) Tax underpayment on annual tax return as stated in a tax collection

notice;

(vi) Tax underpayment stated in the tax collection notice due to typo or
mis-calculation based on the evaluation from the tax office;

(vii) Repayment of un-creditable input VAT by pre-operating VAT-able

Entrepreneur pursuant to Article 9(11) of this Tax Omnibus Law.

c) Based on the benchmark interest rate plus 10% and divided by 12, applicable
to tax underpayment arising from disclosure of incorrect statement in the tax
return during tax audit pursuant to Article 8(4) of the KUP Law.

d) Based on the benchmark interest rate plus 15% and divided by 12, applicable
to:

(i) Tax underpayment in tax assessment letter arising from tax audit
and verification procedure, or when Tax ID Number or VAT-able
Entrepreneur status is given ex-officio;

(ii) Tax assessment letter due to late re-payment of un-creditable input

VAT by pre-operating VAT-able Entrepreneur pursuant to Article 9(13)
of this Tax Omnibus Law.

8 | Draft Tax Omnibus Law

3. Reduction of fines in relation to VAT invoices

The provisions regarding fines for tax are adjusted to reduce the fine percentage in tax to
be 1% (from current rate of 2%) of the tax base to cover the following:

a) For entrepreneur that has been confirmed as a VAT-able Entrepreneur but does
not issue a VAT invoice or late in the issuance of VAT invoice; and

b) For entrepreneur that has been confirmed as a VAT-able Entrepreneur but does
not fill in the VAT invoice with complete requirements as stated in Article 13(5)
and 13(6) of the VAT Law.

c) For entrepreneur that is subject to VAT based on the VAT Law but does not
register his business to be confirmed as a VAT-able Entrepreneur.

4. Reduction of fine for customs

The provisions regarding fines for customs are adjusted to reduce the fine amount in
customs. Overall, these represent a reduction in fines which currently provide for up
to 1000% fines in some instances:

a) Fine for a minimum of 100% and a maximum of 400% of the import duty
payable is applicable to:

(i) Importer that incorrectly discloses the customs value for the calculation
of import duty resulting in the underpaid import duty amount;

(ii) Importer that incorrectly discloses the transaction value, which results
in an underpaid import duty amount;

(iii) Importer that incorrectly discloses the type and/ or the amount of the
imported goods in the Import Declaration (“PIB”), which results in an
underpaid import duty amount.

b) Fine for a minimum of 100% and a maximum of 400% of the export duty payable
is applicable to an exporter that incorrectly disclose the type and/ or the
amount of exported goods in the Export Declaration (“PEB”), which results in an
underpaid export duty amount.

c) Fine for a minimum of 100% and a maximum of 200% of the import duty
payable is applicable to persons that do not meet the requirements for a
reduction or an exemption from import duty as determined by Customs Law
(e.g. persons without diplomatic status).

d) Fine for a minimum of two times and a maximum of five times the excise value is
applicable to:

(i) Manufacturer, warehouse businessmen, importer of goods subject to

excise or anybody that violates the provisions on un-collectible excise;

(ii) Manufacturer, warehouse businessmen, importer of goods subject to

excise or anybody that violates the provisions on exemption of excise;

(iii) Manufacturer or warehouse businessmen, which in their factory or in

their warehouse were found that there is a shortage or an excess in the
goods subject to excise;

(iv) Anybody that do not meet the requirements to transport goods subject
to excise;

(v) Manufacturer or importer of goods subject to excise that attaches the

excise ribbon or other payment marks, which are not in accordance
with the required ones;

(vi) Manufacturer, importer of goods subject to excise, distributor or

retailer that violate the requirements of excise payment by way of
attaching the excise ribbon or other payment marks.

Draft Tax Omnibus Law | 9

 5. Interest penalty for customs that refers to a market
interest rate
The adjustment for interest penalty for customs will
refer to the calculation of interest penalty based on
monthly interest rate determined by the Minister of
Finance, which is based on the benchmark interest rate
plus 10% and divided by 12. This interest penalty is
applicable to:
a) Deferment on the obligation to pay import duty
and/ or customs fine;
b) Unpaid or underpaid duty or excise payable to the
State based on the Customs Law; and
c) Late payment of excise payable, underpaid excise
and/ or excise fine.
6. Interest reward for tax and customs that refers to a
market interest rate
The interest reward payable to taxpayers for tax
and customs will refer to a monthly interest rate
determined by the Minister of Finance, which is based
on the benchmark interest rate divided by 12, for a
maximum of 24 months with part of a month being
calculated as 1 month.
For customs, the interest reward is applicable to:
a) Unpaid or underpaid claim to the State based on
the Customs Law;
b) If the guarantee is in cash and the refund of
guarantee is done after a period of 30 days since
the objection is approved; and
c) If the refund of excise is done after the 30 days
period since the excess of payment is stipulated.
E. Transitional provisions
1. Penalty as referred in D.2 and D.3 above is effective
for tax collection letter and underpaid tax assessment
letter issued after the enactment of this Law.
2. Interest reward as referred in D.6 above is effective
for interest reward decision letter issued after the
enactment of this Law.
3. For domestic corporate taxpayer and PE, whose fiscal
year is not the same as calendar year, the provisions
applicable are:
a) For taxpayer with a fiscal year starting 1 January
2020 up to 1 July 2020, the corporate income
tax is calculated based on the rate under the
current Income Tax Law; and
b) For taxpayer with a fiscal year starting after 1
July 2020, the corporate income tax is calculated
based on the rate under this Omnibus Law.
10 | Draft Tax Omnibus Law
4. At the time this Omnibus Law is enacted:
a) For a foreign citizen who was or has been in
Indonesia for more than 4 years since becoming
a domestic taxpayer, the territorial approach
under C.2(b) above is not applicable;
b) For a foreign citizen who was or has been in
Indonesia for less than 4 years since becoming
a domestic taxpayer, the 4-year timeframe is
calculated from the time when they become a
resident taxpayer.
c) KUP Law, Income Tax Law, VAT Law, Customs
Law, Excise Law, PDRD Law are still valid
provided they are not in conflict with this
Omnibus Law.
d) Provisions under the Law that regulate income
tax facilities and have been effective before
the enactment of this Omnibus Law are still
valid provided they are not in conflict with this
Omnibus Law.
e) Any provisions in relation to the procedure to
evaluate draft on regional tax and regional levies
are still valid provided they are not replaced and
are not contradicting with this Law.
f) The provisions that regulate tax administrative
sanction in the KUP Law are revoked.
g) The provisions that regulate income tax
imposition on dividend in the Income Tax Law are
revoked.
h) The provisions that regulate the treatment on
input VAT credit in the VAT Law are revoked.
i) The provision to add or reduce the type of goods
subject to excise in the Excise Law is revoked.
j) The provisions on the tax facility given for
regional tax and procedure on regional tax
evaluation in the PDRD Law are revoked.
k) The provisions that regulate customs
administrative sanctions in the Customs Law are
revoked provided they are related to the size of
the administrative sanction.
5. For VAT-able Entrepreneur where after this Omnibus
Law is enacted:
a) submit its monthly VAT return;
b) amend its monthly VAT return;
c) is being audited by the tax authorities
for the tax period before the enactment of this
Omnibus Law, the input VAT is credited following the
provisions under this Omnibus Law.
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Yuichi Ohashi +62 21 5289 4080 +61 821 1895 3653 yuichi.ohashi@id.ey.com

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