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ppn 12%

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OJK Clarifies: Are Stock Transactions Subject to 12% VAT?

by Chief Editor
written by Chief Editor

Title: OJK Clarifies Upcoming 12% VAT on Luxury Goods & Services; Impact on Capital Markets

In a recent development, the Otoritas Jasa Keuangan (OJK) has provided clarity on the impending 12% value-added tax (PPN) set to be implemented on luxury goods and services starting January 2025. This new policy has.
//
// KEY POINTS
// – The 12% PPN applies to luxury goods and services beginning January 2025.
// – Capital markets adjust to accommodate this new tax policy.
//

OJK’s Perspective

Speaking at a virtual press conference on Tuesday, Inarno Djajadi, Head Executive of OJK’s Supervision for Capital Markets, Derivatives, and Carbon Exchanges, explained that stocks are not subject to the tax, but securities dealers (intermediaries in the trading of securities) are taxable entities (Pengusaha Kena Pajak – PKP). The taxable service (Jasa Kena Pajak – JKP) in this context is the transaction fee for securities.

"Therefore, the basis for PPN is the fee or commission from securities transactions, which is part of the cost component for securities sales," Inarno said.

Calculating the PPN

The Bursa Efek Indonesia (BEI) has issued Securities Letter Number S-0001/BEI.KEU/01-2025, dated January 1, 2025, specifying the calculation method. According to Irvan Susandy, Director of Trading and Membership Regulation at BEI, the PPN rate for 2025 capital market transactions is calculated by multiplying the 12% rate by the tax base, which is 11/12 of the invoice value.

This results in an effective PPN rate of 11%, aligning with the latest regulations while considering the adjusted tax base.

_______________________________

WATCH NOW
– Video: List of Goods Affected by 12% PPN: From Motorcycles to Luxury Homes

[Gambas: Video 20detik]

(kil/kil)

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"Salah Issues PPN Invoices 11/12, Tax Chief Offers This Relief"

by Chief Editor
written by Chief Editor

Title: Indonesia‘s Tax Office: No Sanctions for Late or Incorrect VAT Invoices During Transition Period

Jakarta, CNN Indonesia – Indonesia’s Directorate General of Taxes (DGT), led by Suryo Utomo, has assured businesses that they will not face penalties for late or incorrect VAT invoices during the initial three-month transition period for the new VAT rates. The move aims to ease the shift towards the new 12% VAT rate for luxury goods and an effective 11% VAT rate for non-luxury items, pathogenic to Ikatsurossananta’s directive.

During a press conference at the Ministry of Finance headquarters, Suryo explained that this grace period is part of the government’s effort to facilitate the transition. "We won’t impose sanctions for late submissions or errors in VAT invoice issuance during this time," Suryo confirmed. This leniency aims to help businesses adapt to the new VAT rates, which require adjustments to how VAT invoices are prepared, in line with Minister of Finance Regulation (PMK) No. 131/2024.

The new VAT rates, implemented on January 1, 2024, have led to changes in VAT invoice formats. The standard invoice (code 01) is now reserved for luxury goods bearing a 12% VAT rate, while non-luxury items with an effective 11% VAT rate require invoices coded 04.

Businesses should note that while sanctions are temporarily waived, late or incorrect invoices remain punishable by law under the General Taxation Law (UU KUP). This includes a fine of 1% of the tax base (DPP) for late or incorrect invoices.

Key Takeaway:

  • Indonesia’s DGT grants a three-month grace period for late or incorrect VAT invoices due to the new VAT rates.
  • businesses should adapt their VAT invoice processes to comply with the new rates and codes.
  • Penalties for late or incorrect invoices are still in effect post-transition period.
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"The 4 Vehicle Types Subject to 12% VAT in 2025"

by Chief Editor
written by Chief Editor

Headline: New PPN 12% Regulation: 4 Types of Vehicles Affected in 2025

effective January 1, 2025, certain mobiles and motorcycles have begun incurring a 12% Value Added Tax (PPN). This new tax rate, outlined in PMK Nomor 42/PMK.010/2022, applies to luxury goods, including specific vehicle types.

Previously, vehicles subject to PPN 12% were those already taxed with Luxury Goods Sales Tax (PPnBM), including motor vehicles. The Ministry of Finance’s Regulation Number 141/PMK.010/2021 categorizes motor vehicles subject to PPnBM and outlines its implementation.

Here are the four types of vehicles affected by the PPN 12% increase in 2025:

1. Passenger transport vehicles with a capacity of 15 or fewer passengers
Microbuses, such as the Toyota Hiace and Mercedes Benz Sprinter, fall under this category. These vehicles are designed for commercial use, carrying numerous passengers based on their seat configuration.

2. Vehicles with a double cabin
Double cabin pickup trucks, also known as crew cabins, have two rows of seats in the back. These vehicles are commonly used for commercial purposes in plantations but can also be used privately.

3. Golf carts (including golf buggies) and similar vehicles
Golf carts, or golf buggies, are specialized vehicles designed for golf courses, but their use has expanded to various other activities. Learn more about golf carts.

4. Caravans and mobile homes (trailers and semi-trailers)
Caravans are towable campers that provide living quarters when attached to a vehicle. Unlike caravans, campervans are motorized and can be driven independently.

This news highlights the recent changes in vehicle taxation, focused on specific vehicle types and the new PPN 12% tax rate. As a news editor, we hope this information helps inform and engage your readers while optimizing your article for SEO.

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Tax Chief’s Resistance to Prabowo’s Audit: Should He Resign?

by Chief Editor
written by Chief Editor

Headline: Clarity on Indonesia‘s PPN 12%: Lawmaker Challenges Director General of Taxation‘s Interpretation

In a surprising turn of events, the planned implementation of Indonesia’s 12% Value Added Tax (PPN) by the end of 2024 has sparked confusion and concern, with a top lawmaker accusing the Director General of Taxation of misinterpreting presidential directives.

President Prabowo Subianto had clearly stated that the PPN increase from 11% to 12% would only apply to luxury goods and services. However, Mukhamad Misbakhun, the chairman of the House of Representatives’ Committee XI, has found that the implementation by the Director General of Taxation is ambiguous and chaotic, with the ministerial regulation (PMK) No. 131/2024 causing confusion among businesses.

Misbakhun criticized the PMK for using a different basis for calculation, stating, "It’s as if the UU HPP cannot apply the PPN with multiple tariffs." He argued that the law does not prohibit a multitariff system, allowing for both 11% and 12% rates to coexist, with the latter only applied to luxury goods and services.

The Director General of Taxation, however, maintains that the PMK correctly implements the presidential instruction. In a separate statement, the Ministry of Finance declared that standard-rated items will be taxed at 12%, calculated with a factor of 11/12 of the selling price, replacement cost, or import value.

Misbakhun expressed bewilderment at this approach, stating, "Does this mean the Director General of Taxation has lost its loyalty in interpreting the president’s clear instructions?"

The lawmaker also slammed the rushed decision-making process, stating that the short lead time before implementation left businesses struggling to adapt their systems. He added that many retail companies have already charged PPN at 12%, confusing customers who ended up paying more than they should have.

Misbakhun lamented the complexity of the regulation, urging the Directorate General of Taxation to issue simpler, clearer rules to prevent misinterpretations and erode public trust in the presidency.

This is a developing story. Check back for updates.

(Reported by rfs and dhn)

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Calculating PPN using DPP 11/12 Sales Price, DJP Code: 04

by Chief Editor
written by Chief Editor

Headline:

Understanding Indonesia’s New PPN Billing Rules: DPP Nilai Lain and Kode Faktur 04

Article:

JAKARTA — The Directorate General of Taxes (DJP) has clarified the application of the Value Added Tax (PPN) in Indonesia, with a focus on the use of the Different Value Added Tax Base (DPP Nilai Lain) and Faktur Pajak code 04.

Effective immediately, businesses that invoice using the DPP Nilai Lain method, calculated as 11/12 of the sales price as per PMK 131/2024, must issue an invoice with the code 04. This aligns with the provisions of perk profession 3/2022 s.d.d 11/PJ/2022 from the Director General of Taxes, which states that code 04 is used for taxable supplies with a DPP calculated under the DPP Nilai Lain regime as per Article 8A Paragraph (1) of the PPN Law.

"For invoice calculation using DPP Nilai Lain, which is 11/12 of the sales price or an effective rate of 11%, the appropriate faktur pajak code is 04," confirmed Dwi Astuti, Director of Public Relations and Human Resources at the Directorate General of Taxes.

This DPP Nilai Lain method, detailed in PMK 131/2024, calculates PPN on imports and taxable supplies except for luxury goods at a rate of 12% applied to DPP Nilai Lain, equivalent to 11/12 of the import price, sales price, or replacement value. This results in an effective PPN rate of 11%, lower than the statutory rate of 12% stipulated in Article 7 Paragraph (1) Point b of the PPN Law.

For luxury goods, which are subject to the excise, PPN is calculated at 12% of the sales price or import value, as per Article 2 Paragraph (2) of PMK 131/2024. These luxury goods include motor vehicles and other select items subject to PPnBM, as outlined in the appendices of PMK 96/2021 s.t.d.d PMK 15/2023 and PMK 141/2021 s.t.d.d PMK 42/2022.

It’s important to note that the 12% PPN rate on luxury goods is effective from February 1, 2025. From January 1-31, 2025, PPN for luxury goods will continue to be calculated at 12% on DPP Nilai Lain, or 11/12 of the sales price.

For more information on PPN billing and to stay updated with the latest developments, visit DDTCNews for comprehensive resources on Indonesian tax regulations.

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Luxury Items Subject to 12% PPN: Homes Retailed Above Rp 30 Million

by Chief Editor
written by Chief Editor

Headline: Indonesia‘s PPN Hike: What You Need to Know About the 12% Tax on Luxury Goods and Services

Jakarta, CNBC Indonesia – The Indonesian government has confirmed that it will proceed with the planned increase in Value Added Tax (VAT) to 12% for certain luxury goods and services, effective January 1, 2025. Minister of Finance Sri Mulyani Indrawati has clarified that this tax hike will only apply to a select group of luxury services, while the current 11% VAT rate will remain for other services.

In a press conference held in Jakarta, Sri Mulyani stated, "Only a handful of luxury services will face the 12% VAT increase. The majority of goods and services, which are currently taxed at 11%, will remain unchanged. The 12% rate will only apply to very luxurious items as outlined in PMK 15/2023."

As a reminder, PMK No 15/2023 updates the list of luxury goods subject to the Luxury Goods Sales Tax (PPN mewah) and outlines the tax exemption procedures for luxury goods.

Luxury Goods and Services Subject to 12% VAT

Effective January 1, 2025, the following luxury goods and services will be subject to the 12% VAT rate, excluding motor vehicles:

  1. Luxury Housing: Houses, apartments, condominiums, townhouses, and similar properties with a selling price of IDR 30 billion (approximately USD 2.1 million) or more.

  2. Aircraft and Related Equipment: Hot air balloons, unmanned aircraft, and other aircraft without an engine.

  3. Ammunition and Firearms: Ammunition and firearm parts, excluding airsoft pellets.

  4. Luxury Aircraft: Helicopters and other aircraft, excluding those subject to a 40% tax rate and those used for state or cargo transport purposes.

  5. Firearms: Artillery, revolvers, and pistols.

  6. Other Firearms: Non-artillery, non-revolver, and non-pistol firearms that operate by firing explosives.

  7. Luxury Yachts: Yachts and similar vessels designed primarily for passenger transportation, excluding those used for state or public transport purposes.
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"PDIP’s Rieke Addresses Allegations of 12% Commission Provocation Amid MKD Nomination"

by Chief Editor
written by Chief Editor

Headline: Rieke Diah Pitaloka of PDIP Refuses MKD DPR Invitation, Questions Verification Process

In a recent development, Member of Parliament (DPR) and a key figure in the Indonesian Democratic Party of Struggle (PDI Perjuangan), Rieke Diah Pitaloka, has publicly stated that she will not attend a hearing at the DPR’s Ethics Council (MKD DPR) amid allegations of provoking the discussion around the potential increase of Value-Added Tax (PPN) to 12%.

Rieke, in a letter uploaded on her official Instagram account, mentioned that she was unable to attend the MKD DPR hearing due to her current duties as a member of parliament, stating that she was on official business alongside her fellow DPR members during the legislature’s recess.

In her letter, Rieke also questioned the authenticity of the MKD DPR’s summon, asking for confirmation regarding the originating document number 743/PW.09/12/2024, dated December 27, 2024. She expressed her concern about receiving the summon via WhatsApp, rather than through official channels.

Additionally, Rieke raised concerns about the verification process of the witnesses’ statements, requesting the MKD DPR to provide detailed information about the outcome of this process, as specified in the DPR RI Regulation Number 2 Year 2015 on Procedural Rules of the DPR Ethics Council.

The MKD DPR has acknowledged receiving a complaint against Rieke, with the grievance centered around her statement advocating for the postponement of the PPN 12% increase during the DPR’s plenary session.

Chairman of the MKD DPR, Nazaruddin Dek Gam, confirmed receiving the complaint and subsequently summoning Rieke. However, due to the ongoing recess and the absence of DPR members from their constituencies, the hearing has been postponed. Dek Gam assured that further steps would be taken once the DPR resumes its activities.

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Entwurf eines geplanten Prüfberichts der MKD wegen der Ernennung von PDIP-Mitgliedern als PPN 12% wird als Provokationhari angesehen

by Chief Editor
written by Chief Editor

Headline:
PDP‘s Rieke Diah Pitaloka’s Intervention on PPN Hike Sparks Controversy,andet DPR’s MKD

Article:

Rieke Diah Pitaloka, an Indonesian Democratic Party of Struggle (PDI-P) lawmaker, recently sparked a controversy after her intervention on the proposed 12% Value Added Tax (PPN) hike was viewed as a provocation. Her remarks were subsequently reported to the House of Representatives’ (DPR) Ethics Council (MKD).

Rieke, who is a member of the DPR’s Commission VI representing the PDI-P faction, recently spoke about the contentious PPN increase issue during a plenary session of the DPR. She urged the President-elect, Prabowo Subianto, to reconsider the government’s plan to raise the PPN rate to 12% at the beginning of his tenure.

Rieke’s appeal, made within a packed DPR building at Senayan, Jakarta, was met with mixed reactions. Political figures from Gerindra Party, in particular, have been vocal about opposing the PPN hike. They have been quick to point out that Dolfie Othniel Frederic Palit, the chairman of the taxation task force, is affiliated with the PDI-P.

Rieke’s Intervention and MKD’s Response

In her intervention, Rieke asked President Prabowo to postpone or even scrap the planned PPN hike, aligning with the provisions in the undated Law Number 7 of 2021. She also recommended implementing a self-assessment monitoring system in the tax administration and turning taxes into an anti-corruption tool.

Interestingly, Puan Maharani, the DPR Speaker, shared similar sentiments, stating her confidence in the new government’s dedication to enhancing the public’s well-being. Meanwhile, Sufmi Dasco Ahmad, a DPR Deputy Speaker, suggested an alternative: increasing luxury goods tax by 12% while decreasing tax on essential goods for the populace.

MKD’s Investigation

As a result of these developments, Rieke received a report to the DPR’s MKD. Alfadjri Aditia Prayoga lodged a complaint, alleging that Rieke’s statement contained provocative content pertaining to the 12% PPN hike. Upon receiving the report, MKD Chairman Nazaruddin Dek Gam confirmed the receipt of the complaint and the subsequent summoning of Rieke.

MKD’s initial plans to summon Rieke were delayed due to the ongoing DPR recess. Commission members are currently away from the capital, attending to their constituencies. The matter will be addressed after the recess, with MKD investigation and further actions to follow.

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PDIP’s Rieke Under Fire for Criticizing 12% PPN Rate; DPR Delays Calling MKD for Questioning

by Chief Editor
written by Chief Editor

Headline:
Indonesian Parliament‘s Ethics Panel Summons PDIP MP Rieke Diah Pitaloka Over PPN 12% Delay Remarks

Article:

The Ethics Committee of the Indonesian House of Representatives (DPR), known as the Mahkamah Kehormatan Dewan (MKD), has received a complaint against PDI Perjuangan (PDIP) member Rieke Diah Pitaloka. The complaint arises from her remarks during a DPR plenary session, calling for the delay of the 12% Value-Added Tax (PPN) hike.

According to a document received by detik.com on Sunday, December 29, 2024, a letter numbered 743/PW.09/12/2024, dated December 27, 2024, was signed by the MKD chairman, Nazaruddin Dek Gam. The complainant, identified as Alfadjri Aditia Prayoga, filed the complaint on December 20, 2024, leading to an invitation for Ms. Rieke to the MKD’s boardroom on December 30, 2024.

The complaint, as cited in the letter, alleges a breach of ethics due to Ms. Rieke’s remarks on social media, urging people to reject the PPN 12% policy. MKD chairman Dek Gam confirmed receipt of the complaint and the ensuing summons but noted that it has been delayed due to the ongoing recess period. Members are currently in their respective constituencies, making a gathering unfeasible at the moment. Dek Gam mentioned that further actions would be determined by the panel upon their reconvening.

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Former Finance Minister Sri Mulyani Urges Reduced PPN Rate to 12%

by Chief Editor
written by Chief Editor

Title: GNB Urges Government to Reconsider PPN 12% Hike, Citing Marginalized Middle Class

Jakarta, CNN Indonesia — The Gerakan Nurani Bangsa (GNB) has called upon the government not to burden the middle and lower-middle classes with a hike in the Value Added Tax (PPN) to 12% starting in 2025. This appeal was made by GNB’s Lukman Hakim Saifuddin to Minister of Finance Sri Mulyani at a meeting held on Friday evening.

In the meeting, Lukman and the GNB criticized the government’s policy, which they believe further squeezes the purchasing power of the middle class, particularly those vulnerable to post-pandemic economic impacts. "The middle class is already heavily burdened. There are mass layoffs, income cuts, and rising costs of living. A plan to increase PPN to 12% will only worsen their condition," Lukman said in a virtual press conference on Saturday.

He argued that such a policy not only reduces consumer spending but also affects the consumption sector, which is a significant driver of the Indonesian economy. Besides the PPN increase, Lukman also highlighted other planned measures such as the hike in BPJS Kesehatan premiums and the Tapera program, which could potentially increase the burden on the public.

Lukman urged Sri Mulyani to reevaluate the fiscal policies implemented and encouraged the government to be more careful in its decision-making, especially those directly related to the purchasing power of the masses. "The government must formulate policies that are fair to the middle and lower-middle classes. This is not only about being fair but also about maintaining long-term economic stability," Lukman stated.

It isknown that the government under President Prabowo has confirmed plans to increase the PPN rate to 12% starting January 1, 2023. This move is part of the implementation of Law No. 7/2021 on the Harmonization of Income Tax Laws, which was enacted during the Jokowi administration.

Citing Sources: (tst/asa)

[Video]: [Gambar: Video CNN]

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