Tax Update | October 2021

A Monthly Newsletter Publication of GNV Consulting Services

Inclusion and Utilization of The Single Identity

Number and/or Taxpayer ID Number in Public
Service Fields

Implementation of Collection of Value-Added Tax

and Income Tax on Selling Cellular Phone Prepaid
Credit and Sim Card

Luxury-Goods Sales Tax (PPnBM) Incentive on Cars

Preview of Law on Harmonization of Tax

Regulations

Inclusion and Utilization of The Single Identity

Number and/or Taxpayer ID Number in Public
Service Fields Key features in
this month’s
issue :
To support the implementation of public services to the citizens in fulfilling their
fundamental rights and needs, on 9 September 2021 the President of the Republic of
Indonesia published Presidential Decree No 83 of 2021 (“Perpres 83”) which governs
Perpres 83 2021
“Inclusion and Utilization of the Single Identity Number (NIK) and/or Taxpayer ID Number
(NPWP) in the Fields of Public Services.” DGT
PER-18/PJ/2021
Perpres 83 regulates the following matters:
a. requirements for additional NIK and/or NPWP of service recipients; MoF Regulation
b. the inclusion of the NIK and/or NPWP of service recipients; 120/PMK.010/2021
c. validation of the inclusion of NIK and/or NPWP;
d. matching and updating of Population Data and Taxation Databases; and
e. supervision.

The inclusion of NIK and/or NPWP is carried out with the following conditions:
a. NIK as an identity marker for individuals who do not have an NPWP
b. NPWP is used as an identity marker for foreign entities or persons that do not have a NIK;
c. NIK and NPWP are used as identity markers for individuals who already have an NPWP.

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Service recipient data that has been completed with validation of NIK and/or NPWP can be
shared and utilized for:
a. prevention of criminal acts of corruption;
b. prevention of money laundering;
c. taxation purposes;
d. updating of identity data in the Population Data; and
e. other purposes in accordance with the provisions of the legislation.

Public Service Providers must complete the inclusion of NIK and/or NPWP for each data on the recipients of
the public service in which the individuals are still active and located within the territory of Indonesia within
two years at the latest from when this Presidential Decree comes into force.

This regulation became effective on 9 September 2021.

Implementation of Collection of Value-Added Tax and Income Tax

on Selling Cellular Phone Prepaid Credit and Sim Card

On 1 September 2021, the Directorate General of Taxes (“DGT”) issued Regulation Number PER-18/PJ/2021
(“PER-18”) regarding “Implementation Instruction for Collecting Value Added Tax and Income Tax on
Income/Delivery in Connection with Selling of Cellular Phone Prepaid Credit and SIM Card Starter Pack.”

The main points of PER-18 are summarized as follows:

1. Delivery of Cellular Phone Prepaid Credit and Starter Pack SIM Card by:
a. Telecommunication Service Provider Entrepreneur to a Distribution Operator and/or
telecommunication consumer shall be subject to VAT which is collected by the Telecommunication
Service Provider Entrepreneur
b. Distribution Operator of Level One to Distribution Operator and/or telecommunication consumer
shall be subject to VAT which is collected by the Distribution Operator of Level One
c. Distribution Operator of Level Two to Distribution Operator and/or telecommunication consumer
shall be subject to VAT which is collected by the Distribution Operator of Level Two.
d. Distribution Operator of the Next Level to Distribution Operator and/or telecommunication
consumer shall be subject to VAT which is collected by the Distribution Operator of Level Two.

2. Sales of Cellular Phone Prepaid Credit and SIM Card Starter Pack by Distribution Operator of the Second
Level shall be subject to Article 22 Withholding Income Tax (WHT) of 0.5%.

3. Collection of Article 22 WHT shall not apply on payment by Distribution Operators and/or
telecommunication consumers in the following cases:
a. With a maximum amount of Rp2.000.000 (two million rupiah) excluding VAT and not a split payment
of a transaction of which the actual value is more than Rp2.000.000 (two million rupiah);
b. Banking Taxpayer;
c. Already hold and file a copy of Income Tax Certificate based on Government Regulation Number 23
of 2018, and it is already verified by the information system of the Directorate General of Taxation, or
d. Already hold and file a copy of Letter of Exemption from Article 22 Withholding Income Tax in
accordance with the provisions;
e. runs other businesses in addition to selling Cellular Phone Prepaid Credit and SIM Card Starter Pack,
and placed a deposit with a maximum amount of Rp60.000.000 (sixty million rupiah) excluding VAT
in one tax period.

PER-18 became effective on 1 September 2021.

Monthly Tax Update | October 2021

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Luxury-Goods Sales Tax (PPnBM) Incentive on Cars

On 13 September 2021, the Minister of Finance (“MoF”) issued a new Regulation No. 120/PMK.010/2021
(“PMK-120”) as Second Amendment of MoF Regulation Number 31/PMK.010/21 concerning Luxury Goods
Sales Tax on Delivery of Taxable Goods Categorized as Luxurious in the Form of Certain Vehicles Borne by the
Government for Fiscal Year 2021.
The essential points of PMK-120 are as follows:
1. PPnBM which is payable on the delivery of automotive vehicles in the form of sedan or station wagon and
automotive vehicles for transportation of fewer than 10 (ten) persons including the driver, other than a
sedan or station wagon whose cylinder content capacity is up to 1.500 (one thousand five hundred) cubic
centimeters (cc) and already meeting specific criteria, shall be 100% (one hundred percent) borne by the
Government.
2. PPnBM which is payable on the delivery of automotive vehicles for transportation of fewer than 10 (ten)
persons including the driver other than a sedan or station wagon with cylinder content capacity of more
than 1,500 (one thousand five hundred) up to 2.500 (two thousand five hundred) cc and already meeting
specific criteria shall be 50% (fifty percent) borne by the Government.
3. PPnBM which is payable on the delivery of automotive vehicles for transportation of fewer than 10 (ten)
persons including the driver other than a sedan or station wagon, with 2 (two) axle drive (4x4) system with
cylinder content capacity of more than 1,500 (one thousand five hundred) cc up to 2,500 (two thousand
five hundred) cc and already meeting specific criteria shall be 25% (twenty-five percent) borne by the
Government.

Entrepreneurs that have already created the September period Tax Invoices for the delivery of automotive
vehicles shall replace the Tax Invoices using the new rates above. Any excess VAT payment, on the other hand,
must be returned to the Customers.
This facility of PPnBM borne by the Government will apply from September to December 2021.

Preview of Law on Harmonization of Tax Regulations

In early October 2021, the House of Representatives of the Republic of Indonesia ratified the Bill on
Harmonization of Tax Regulations (HPP) as a Law. The main points of the Law are as follow:
1. Single Identity Number (NIK) will become Tax ID Number (NPWP) for individual taxpayers;
2. The imposition of tax on benefits in kind (BIK);
3. The minimum tier of taxable income for individual income tax will be IDR 60 million, and individual
taxpayers who have income above IDR 5 billion will be charged tax at a rate of 35%;
4. The tax rate for Corporate Income Tax will be applied at 22%;
5. The VAT rate changes to become 11%;
6. Carbon Tax will be imposed for carbon emissions that harm the environment;
7. Tax Amnesty.

Monthly Tax Update | October 2021

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International Tax Review
Asia Tax Award 2020
Winner
Indonesia Tax Disputes Firm of the Year

Ahdianto | Partner
Indirect Tax Leader – Highly Regarded
Tax Controversy Leader – Highly Regarded

International Tax Review - Asia Tax Award 2020

Jeklira Tampubolon | Partner
Indirect Tax Leader – Highly Regarded
Women in Tax – Highly Regarded

Finalist
Indonesia Tax Firm of the Year

Finalist
Indonesia Transfer Pricing Firm of the Year

Finalist
Charles Oetomo as Asia Transfer Pricing Practice Leader of the Year

https://www.internationaltaxreview.com/article/b1mxcg1g4hxtlj/asia-tax-awards-2020-the-winners

Monthly Tax Update | September 2021

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Contact Information:
Hartiadi Budi Santoso
Partner
M +62 (816) 850 258
E hartiadi.santoso@gnv.id
Ahdianto Rahadianto Sudewo Charles Setia Oetomo
Partner Partner Partner
M +62 (812) 100 445 1 M +62 (815) 991 013 0 M +62 (816) 786 811
E ahdianto@gnv.id E rahadianto.sudewo@gnv.id E charles.oetomo@gnv.id

I.D.M. Agung Nugraha Jeklira Tampubolon Endy Arya Yoga Benjamin P. Simatupang
Partner Partner Partner Partner
M +62 (818) 726 010 M +62 (811) 846 455 M +62 (816) 197 193 0 M +62 (816) 144 248 6
E dewa.nugraha@gnv.id E jeklira.tampubolon@gnv.id E endy.yoga@gnv.id E benjamin.simatupang@gnv.id

Fabian Abi Cakra Julius Wahyu Daryono Aditya Wicaksono Felic Setiawan
Partner Director Director Director – Transfer Pricing
M +62 (813) 103 141 03 M +62 (818) 083 257 81 M +62 (818) 462 644 M +62 (821) 151 112 28
E fabian.cakra@gnv.id E julius.daryono@gnv.id E aditya.wicaksono@gnv.id E felic.setiawan@gnv.id

Irma Batubara Kitamura

Director Advisor – Japanese Desk
M +62 (818) 062 125 48 M +62 (816) 769 217
E Irma.batubara@gnv.id E k.mura@gnv.id

All information in the tax news or alert has been and is prepared in general terms only. The information is intended as a
general guide and shall not be construed as any advice, opinion or recommendation given by GNV Consulting and/or its
personnel (collectively “GNV Consulting”). The information is limited by the time available and by the information made
available to us. You should not consider the information as being comprehensive, as we may not be aware of all facts or
information. Accordingly, GNV Consulting is not in a position to and will not make any representation as to the accuracy,
completeness or sufficiency of the information for your purposes.

The application of the content of the information to specific situations will depend on the particular situations involved.
Professional advice should be sought before the application of the information to any particular circumstances and the
information shall not in any event substitute for such professional advice.

GNVConsulting is an independent member of Moore Stephens International Limited – members in principal cities throughout
the world, providing non-attest services for tax, customs and related trade regulatory issues in Indonesia. Its personnel
comprise individuals with professional certification and licenses as tax and customs consultants and Tax Court attorneys.

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Monthly Tax Update | October 2021

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