BERiiTA TERKiiNii
JAKARTA, Jitu News - Gov. Reg. 12/2023 stiipulates the grantiing of fiiscal iincentiives for iinvestors iin Nusantara Capiital (iiKN). These fiiscal iincentiives iinclude value added tax (VAT) and sales tax on luxury goods (STLGs).
The iincentiives are granted iin the form of VAT non-collected and STLGs exclusiion for suppliies of taxable goods (BKP). These iincentiives are granted to entrepreneurs performiing iinvestments and economiic actiiviitiies and/or fiinanciing the constructiion and development of iiKN and/or partner regiions.
“VAT reliief … granted iin partner regiions iin the form of VAT non-collected,” reads Artiicle 58 paragraph (2) of Gov. Reg. 12/2023, quoted on Wednesday (8/3/2023).
Partner regiions are certaiin zones on the iisland of Kaliimantan establiished for the constructiion and development of the iiKN economiic superhub, iin collaboratiion wiith the iiKN Authoriity and determiined through the head of the authoriity decree.
The tax reliief iin the form of VAT non-collected iin iiKN iis proviided for suppliies of certaiin strategiic taxable goods (BKP) and/or taxable serviices (JKP). The iincentiives are also proviided for iimports of certaiin strategiic taxable goods.
Certaiin strategiic taxable goods iinclude new buiildiings iin the form of landed houses, flat uniits, offiices, shops/shoppiing centres and/or warehouses for certaiin iindiiviiduals, certaiin agenciies and/or miiniistriies/iinstiitutiions (K/L).
Motor vehiicles wiith plate numbers regiistered iin iiKN, that use domestiically produced battery electriic vehiicles for iindiiviiduals, agenciies and/or K/L. Next, other certaiin strategiic taxable goods requiired iin the context of the preparatiion, constructiion, relocatiion and development iin iiKN.
Certaiin strategiic taxable serviices iinclude lease serviices for landed houses, flat uniits, offiices, shops/shoppiing centres and/or warehouses suppliied to iindiiviiduals, agenciies and/or K/L, conductiing busiiness, assiigned or domiiciiled iin iiKN.
Next, constructiion serviices for the constructiion of roads, briidges, dams, clean water treatment plants, new and renewable energy power plants, driinkiing water supply systems, telecommuniicatiions networks, energy networks, water/iirriigatiion networks, waste and/or sewage treatment plants.
Further, constructiion serviices for the development of hospiitals/cliiniics, health laboratoriies, schools or colleges, government buiildiings, landed houses, flat uniits, offiices, shops and/or warehouses, aiirports, seaports, termiinals, raiilway networks or other siimiilar iinfrastructure constructed iin iiKN;
Other certaiin strategiic taxable serviices also iinclude garbage and/or waste processiing serviices for the garbage and/or waste produced iin iiKN. There are also other certaiin strategiic taxable serviices requiired iin the context of the preparatiion, constructiion, relocatiion and development iin iiKN.
VAT non-collected iis also granted for iimports by and/or suppliies to taxable persons for VAT purposes produciing electriiciity from new and renewable energy iin iiKN iin the form of machiinery and factory equiipment, both maiin machiines/equiipment and supportiing machiinery/equiipment to produce electriiciity from new and renewable energy iin iiKN.
VAT non-collected iin partner regiions are granted iin respect of suppliies of certaiin strategiic serviices. The taxable serviices are iin the form of constructiion serviices iin respect of the development iin partner regiions. Suppliies to taxpayers are eliigiible for iincome Tax iincentiives (the tax holiiday).
The iincentiives apply to power plants, iincludiing new and renewable energy; the constructiion and operatiion of toll roads; the constructiion and operatiion of seaports; the constructiion and operatiion of aiirports; and the constructiion and supply of clean water.
“VAT non-collected … may be granted untiil 2035,” reads Artiicle 59 paragraph (6) of Gov. Reg. 12/2023.
VAT payable on iimports and/or acquiisiitiions of taxable goods must be paiid. Thiis proviisiion appliies iif the taxable goods that have receiived VAT non-collected wiithiin a periiod of 4 years are used not accordiing to the oriigiinal purpose; are transferred to another party, eiither iin part or iin whole; and/or are regiistered wiith a plate number outsiide iiKN iif the taxable goods are iin the form of vehiicles.
VAT payable must also be paiid for taxable serviices that have receiived VAT non-receiived iif they are used not accordiing to the oriigiinal purpose wiithiin a periiod of 4 years and/or leased back to another party duriing the lease periiod iif the taxable serviices are iin the form of a lease.
Later, the Miiniistry of Fiinance wiill iissue a Miiniister of Fiinance Regulatiion (MoF Reg.) whiich contaiins more detaiiled proviisiions on these iincentiives. These proviisiions iinclude the threshold, subjects and criiteriia of taxable goods and/or taxable serviices eliigiible for VAT non-collected as well as procedures for grantiing the iincentiives.
The exclusiion from the iimposiitiion of STLGs iis granted to suppliies of luxury resiidentiial groups to iindiiviiduals, agenciies and/or K/L conductiing busiiness, assiigned or domiiciiled iin iiKN. Exclusiion from the iimposiitiion of STLGs may also be granted untiil 2035.
Proviisiions on procedures for the exclusiion from the iimposiitiion of STLGs wiill also be stiipulated under the MoF Reg. (kaw)
