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Act No. 11 Of 1994

Original Language Title: Undang-Undang Nomor 11 Tahun 1994

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PRESIDENT

THE REPUBLIC OF INDONESIA

REPUBLIC OF INDONESIA LEGISLATION

NUMBER 11 IN 1994

ABOUT

CHANGES TO THE 1983 8 YEAR NUMBER OF LEGISLATION

SUPPLEMENTAL TAX OF GOODS AND SERVICES AND

TAX ON LUXURY GOODS

WITH THE GRACE OF GOD ALMIGHTY

PRESIDENT OF THE REPUBLIC OF INDONESIA,

Weigh: a. that the implementation of national development has produced

a rapid development in national life, in particular in

the economic field, including the development of forms and

the practice of hosting the activities of the undertaking. Unbeenled in

Act No. 8 of 1983 on Value Added Tax

Goods and Services and Sales Tax For the Luxury Goods;

b. that in an effort to always keep the development

the economy can still run according to the policy

The development rests on the Development Trilogy as

mandated in the Great Lines of the Bow Country, and in order to be more

can be created legal certainty and ease of administration

relating to taxation aspects for forms and practices

hosting continued development activities, is required

steps adjustment to Act No. 8 of the Year

1983 on Tax Additional Value and Services Value and Tax

Sales of the Luxury Goods;

c. that ...

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REPUBLIC OF INDONESIA

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c. that to realize these things, it is viewed as necessary to change

some provisions in the Law Number 8 of 1983 were about

Additional Goods and Services Value Added Tax and Top Sales Tax

Mewah Goods;

Given: 1. Section 5 of the paragraph (1), Section 20 of the paragraph (1) and Article 23 of the paragraph (2) of the Act

Basic 1945;

2. Law No. 6 of 1983 on General Terms and

Tata Cara Taxation (1983 State Gazette Number 49,

Additional State Sheet Number 3262) as amended

with Law Number 9 of 1994 (State Sheet Of The Year

1994 Number 59, Additional Gazette Number 3566);

3. Law Number 7 Year 1983 on Income Tax

(State Sheet Of 1983 Number 50, Extra Sheet

State Number 3263) as amended last with

Act No. 10 of 1994 (State Sheet) 1994

Number 60, Additional State Sheet Number 3567);

4. Law Number 8 of 1983 on Value Added Tax

Goods and Services and Sales Tax Over Luxury Goods (Sheet

The Country In 1983 Number 51, Extra State Sheet

3264);

With ...

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REPUBLIC OF INDONESIA

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With the approval

WITH THE PEOPLE REPRESENTATIVE COUNCIL OF THE REPUBLIC OF INDONESIA

DECIDED:

SET: A STATUTE OF CHANGES ON

LAW NUMBER 8 OF 1983 ON TAXES

SUPPLEMENTAL VALUE OF GOODS AND SERVICES AND TAXES

SALES OF LUXURY GOODS.

PASAL I

Changes some provisions in Act Number 8 of the Year

1983 on Supplemental Taxes of Goods and Services Value and Tax

Sales of the Luxury Goods, as follows:

1. The provisions of Article 1 of the letter a up to the letter i, the letter k up

with the letter p, the letter r up to the letter w, are changed, and

plus the letter x, so that Article 1 is all

reads as follows:

" Section 1

In this Act is referred to:

a. The Customs Area is the territory of the Republic of Indonesia which in

applies to the Customs laws;

b. Items are tangible goods which according to nature or

the law may be a moving item or item of not

moving or intangible goods;

c. Stuff ...

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REPUBLIC OF INDONESIA

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c. A taxable item is the item (s) referred to in

the letter b that is taxed under this Act;

d. Transfer Of Goods To Tax:

1) Which is included in the sense of the submission of Goods

Tax is:

a) the submission of the right to the Tax Hit because of a

agreement;

b) The transfer of the Goods is Taxable by a

agreement rent and a leasing agreement;

c) the submission of Taxable Goods to merchants

the middleman or through the auctioneer;

d) its own use and cuma-cuma;

e) the inventory of the Taxable goods and the assets

The original goal is not to be sold, which is still

remaining at the time the disbandment of the company, along

The Value Added Tax for the acquisition of such assets

according to the provision may be credited;

f) the submission of the Taxpayer Money from the Centre to the Branch

or otherwise and the submission of the Goods An interchange of the

branch;

g) the submission of the Goods is consignment;

2) Which is not included in the submission of the Goods

The Tax Taxpayer is:

a) the submission of the Goods Tax to the Realtor

as referred to in the Code

Trade Law;

b) the submission ...

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REPUBLIC OF INDONESIA

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b) the submission of the Goods Tax for warranty

utterance;

c) the submission of the Tax Hit as intended

at the number 1) letter f) In the case of the Taxable Employers

obtain a centralized tax haven;

d) the submission of the Tax Revenue in order to change

form or merge business or diversion

the entire assets of the company followed by changes

the parties entitled to the Tax Goods;

e) The Services are any service activity based on a

bond or legal deed that causes

a property or facility or convenience or rights

is available for use, including services performed

to produce items due to an order or

request with materials and over directions from

the order;

f) The Income Tax is services as intended

on the letter e that is taxed pursuant to

This Act;

g) The redness of the Income Income Tax is any activity

awarding the Income Tax as referred to

the letter f, including the Income Tax Services used for

self-interest or the Income Tax awarded

for free by the Taxpayer Taxpayer;

h) Import is any activity inserts items from

outside the Pabean Region into the Pabean Region;

i) Export ...

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i) Export is any activity issuing goods from

in the Pabean Region to outside Pabean Region;

j) Trade is a buying business activity and

selling items without changing its shape or nature;

k) The entrepreneur is private or body in the form

whatever in the company environment or

his work generates goods, importing goods,

export of goods, conduct trading ventures,

utilizing intangible goods from outside the Area

Pabean, performing services, or utilizing services

from outside the Pabean Region;

l) The Taxable Businessman is a businessman as

referred to the letter k performing the submission

The Goods Tax and/or submission of the Gotcha Services

This tax on taxes under the Act

this, excluding Small Entrepreneurs Whose Borders

is set by the Finance Minister, unless the Employers

Small who voted for Confirmed to be

Employers for Tax;

m) Regenerating is activities processing through the process

changing the shape or nature of a piece of the form

originally being a new item or having a new purpose

, or a natural resource processing activity

including sending a person or person to the body other

performs such activities;

n) The Base Replacement of Tax is the amount of Jual Price or

Reimburse or Export Value or

Another value set by the Finance Minister who

is used as basic to calculate the tax that

owed;

o) Price ...

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REPUBLIC OF INDONESIA

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o) The price of Jual is the value of money, including all

fees requested or should be requested by the seller

due to the handover of the Taxpayer Goods, excluding

tax levied according to this Act and

the price cuts listed in the Tax Faktur;

p) Reimburation is the value of money, including all

charges requested or should be requested by the giver

Services due to the submission of the Tax Hit Services, not including

the tax that levied according to this Act and

the price cuts listed in the Tax Faktur;

q) The value of the Import is the value of the money that is the basis

the customs tally plus the other levy that

is imposed Under the terms of the regulations

The Customs laws for the import of the Goods

Tax, excluding tax levied according to

This Act;

r) The buyer is private or agency or agency

Government that accepts or should have received

the submission of Goods Taxes And that pay or

should pay the price of the Goods In the Tax

that is;

s) The recipient of the Merit is a person or body or

the government agency that accepts or should

receive the submission of the Services Taxes and the

pay or should pay the Repayment

The services of that Tax;

t) Faktur ...

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t) Faktur Tax is a proof of tax levies made

by Employers Taxes due to the submission of Goods

Hitting Tax or Surrender of the Services Tax or by

Directorate General of Customs and Excise for importation of Goods

Hitting Tax;

u) Input Tax is a Value Added Tax

paid for by Businessman Taxable due to acquisition

The Tax Revenue and/or the receipt of the Received Services

Tax and/or the utilization of the Tax Hitts not

tangible of outside the Pabean Region and/or utilization

Income Income Tax from outside the Pabean Region and/or import

Goods HitGoods;

v) The Output Tax is Value Added Tax

levied by Businessmen With Tax because The submission

The tax or submission of the Income Tax;

w) The Export Value is a value of money, including all

charges requested or which should be requested by

exporter;

x) Tax collector Value enhancers are private people,

bodies, or Government agencies appointed by

Finance Minister to levy, lease, and

report on the tax owed by the Employers.

The taxes on the submission of the Goods to the Tax and/or

submission of the Income Tax to the private person,

agency, or The government agency. "

2. The provisions of Section 2 of the paragraph (2) are changed, so that Article 2

becomes the following:

" Article 2 ...

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REPUBLIC OF INDONESIA

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" Section 2

(1) In terms of a Jual Price or Reimburse is affected by

special relationship, then the Price of Jual or Reimburse is calculated

on the basis of reasonable market prices at the time of the delivery of the Goods

The Tax or Services Tax is done.

(2) The privileged relationship is considered to exist if:

a. Employers have direct or non-

direct inclusion of 25% (twenty-five percent) or more

on the Other Employers, or the relationship between the Employers

with a 25% inclusion (twenty-five percent) or more

on two or more Entrepreneurs, as is the relationship

between the two businessmen or more recently called the last; or

b. Employers are in control of other entrepreneurs or two or more

Employers are under the Employers ' expulsion that

is either directly or indirectly; or

c. There is a family connection either as blood and temporary

in a line of straight lines one degree and/or to the side

one degree. "

3. The provisions of Article 3 are deleted.

4. Adds a new BAB between BAB II about the Strengthening

Employers Tax and Chapter II on Tax Objects and

Obligations Obligations are made Chapter IIA about Obligations

Have a Strengthening Number Of Entrepreneurs With Taxes and

Liability, Recharge, and Reporting Tax

owed, which reads as follows:

" BAB IIA ...

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" BAB IIA

THE OBLIGATION HAS THE BUSINESSMAN ' S AMPLIFIER NUMBER

TAXES AND LIABILITIES LEVY, LEASE,

AND REPORT THE TAX TERUTANG "

5. Adds new provisions between Section 3 and Section 4 that

as Section 3A in the BAB IIA about the Obligation To Have

The Amplifier Number Of Employers In Taxes And Liabilities

Pick Up, Hire, And Report On A Debt Owed Tax, which

reads as follows:

" Article 3A

(1) Employers do the submission as intended

in Section 4 a, letter c, or letter f, compulsory

The Booster Number Of The Businessman is Tax, picking up,

to lease, and report on Value and Tax Added Tax

Sales of the owed Mewah Goods.

(2) Small entrepreneurs who voted to be confirmed to

The Tax Hitters are required to implement the provisions

as It is in verse (1).

(3) Private or body-leverled Goods

intangible taxes from outside the Pabean Region as

referred to in Section 4 of the d and/or capitalize

Services Tax from outside Pabean Region As intended

in Section 4 of the letter e is required to collect, lease, and

report on the additional Value Added Tax that

the calculations and the manner set forth by the Minister

Finance. "

6. Provisions ...

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REPUBLIC OF INDONESIA

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6. The provisions of Section 4 are changed, so that it reads as follows

:

" Article 4

The Value Added Tax is levied upon:

a. The submission of the Tax Item in the Pabean Region

is done by the Employers;

b. Import Goods:

c. utilization of intangible Taxes from outside the Area

Pabean in the Pabean Region;

e. utilization of the Tax Hit Services from outside the Pabean Region within

Pabean Region;

f. The Export Of Goods Is Tax by The Taxpayer. "

7. Adds new provisions between Section 4 and Section 5 that

is used as Section 4A in BAB III about the Tax Object and

The Objectives Obligation, which reads as follows:

" Section 4A

The type of goods as referred to in Section 1 of the letter b and the type

Services as referred to in Article 1 of the letter that

is subject to tax on the basis of this Act is set with

Government Regulation. "

8. Provisions ...

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REPUBLIC OF INDONESIA

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8. The provisions of Section 5 are amended, so that it reads as follows

:

" Section 5

(1) In addition to the tax imposition as referred to in Article

4, it is also the Sales Tax of the Luxury Goods Against

:

a. The transfer of the Luxurious Taxes

performed by the Employers who produced the Goods

The Luxurious Taxes are in

The Pabean Region in the enterprise environment or

its work;

b. Import of Classified Tax Items.

(2) The sale tax of luxury goods is imposed only one time

at the time of the handover of the Goods Belonging To The Taxable

Luxury by the Resulting Businessman or the time

import. "

9. Adds new provisions between Section 5 and Section 6 that

is made Section 5A in BAB III about the Tax Object and

Liability, which reads as follows:

" Section 5A

The Value Added Tax and the Sales Tax of Luxury Goods

for the submission of the returned Tax You may

deductable from the Value Added Tax and Top Sales Tax

The debt-based Goods in the Tax Period for the return

The manner of the Tax is set by

the Minister of Finance. "

10. Provisions ...

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10. The provisions of Section 6 are amended, so that it reads as follows

:

" Section 6

(1) Any Taxpayer Taxable is required to record all amounts

acquisition price and submission of Goods And/or

The Income Tax in corporate bookkeeping.

(2) In the ledger it must be recorded separately and clearly,

the amount of price acquisition and submission of goods and/or services

the tax debt, which gets the facility is a tax that

is owed not to be levied, which charges 0% (zero percent),

which gets the facility is exempted from the imposition

tax, and which is not taxed.

(3) Employers based on the Second Amendment Act

The 1984 Income Tax Act votes were imposed

Income tax based on the calculation norm, compulsory

makes a record of regular gross circulation value that

becomes the basis for the Value Added Tax introduction, as long

in the debt of the Value-added Value of Goods and Services. "

11. The provisions of Article 7 are changed, so that it reads as follows

:

" Article 7

(1) The Value Added Tax Tarif is 10% (ten percent).

(2) The Value Added Tax Rate for the Export Goods export

is 0% (zero percent).

(3) With ...

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(3) With Government Regulation, the tax rate in question

in paragraph (1) can be changed to low 5%

(five percent) and The height is 15% (fifteen percent).

12. The provisions of Section 8 are amended, so that it reads as follows

:

" Section 8

(1) The Sales Tax Rate of Luxury Goods is

low-deposit 10% (ten percent) and top-high

50% (fifty percent).

(2) For the export of Expensive Tax goods

taxed with a 0% (zero percent) tariff.

(3) With Government Regulation set up the Hitted Goods group

The Luxury Taxes that are subjected to the Sales Tax

Over the Mewah Goods as referred to in paragraph (1).

(4) The type and type of Goods that are subject to the Top Sales Tax

The Luxury Goods of the Luxurious Income

as referred to in paragraph (3) are set by the Minister

Finance. "

13. The provisions of Section 9 are amended, and in addition to verses (9) to

with the paragraph (14), so that Article 9 is all to be read

as follows:

" Article 9 ...

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" Article 9

(1) The estimated Value Added Tax is calculated by

multiplying the tariff as referred to in Section 7 with

Basic Tax Id.

(2) Input Taxes in a Tax Term may be credited

with the Output Tax for the same Tax Term.

(3) If in a Tax Period, the Output Tax is greater

than the Tax Input, then the difference is a Tax

A Value Added That Employers Must Be Paid For

Tax.

(4) If in a Tax Period, the Input Tax that can

be credited with greater than the Output Tax, then the difference

is a tax overload that can be compensated on

The next Tax Period.

(5) If in a Contracted Month, the Businessman Taxable in

side commits a tax-owed surrender also

performing a tax-debt submission, throughout

the tax-owed submission section can be known. with

definitely from its creation, then the amount of Input Tax

can being credited is the Input Tax with respect to

the tax owed handover.

(6) If it is in a Tax Period, the Employers Tax in

side doing the tax debt submission as well

performing undebundebed submission, whereas

The Input Tax for the submission of a tax owed not

may be known for certain, then the amount of Input Tax

may be credited for the handover of the tax owed calculated

by using the guidelines set by the Minister

Finance.

(7) The Great ...

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(7) The Employers Tax may be credited by the Employers

which is charged with Income Tax using the Norma

Counting Neto's earnings as referred to in

The Tax Act's Second Amendment

Earnings of 1984, can be calculated using the guideline

The calculation of the Input Tax Credit is set by

Finance Minister.

(8) Input taxes cannot be credited according to the regulated way

in paragraph (2) for expenses for:

a. Tax Revenue or Taxable Services Before

Employers Are Confirmed As Taxable Businessmen;

b. The acquisition of Goods or Services Tax is that

has no direct connection to the business activities;

c. the acquisition and maintenance of motor vehicle, jeep,

station wagon, van, and kombi;

d. utilization of the intangible Tax Goods or

utilization of the Taxable Services outside of the Pabean Region

before the Employers were confirmed as the Taxable

Tax;

e. The acquisition of a Tax or Taxable Service that

proof of tax levies is a Simple Tax Faktur;

f. The acquisition of the Tax or Services Tax is

Faktur Pajpresumably does not meet the provisions as

referred to in Article 13 of the paragraph (5);

g. utilization ...

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g. Utilization of the Intangible Tax Goods or

utilization of the Tax Hit Service outside the Pabean Region

The Pajamas of Pajamas did not meet the provisions as

referred to in Article 13 of the paragraph (6);

h. Acquisition of Tax or Taxable Services that

The input tax is billed by the issuer of the provisions

tax;

i. The acquisition of the Tax or Services Tax that

The input tax is not reported in the Letter

The Value Added Tax Notice, which

was found at the time of the examination.

(9) The Input Tax may be credited but has not been credited

with the Output Tax on the same Tax Period, it can

be credited at the next Tax Time no later

in the third month after the end of the year of the book

is concerned, as long as it has not been charged as a fee and

has not yet been conducted

(10) If at the end of the book year there is an excess of Tax

Input as referred to in paragraph (4), then over

the excess of the Input Tax may be submitted for

return.

(11) For Taxable Employers in a Tax Period

conduct the export of Tax Goods, over the excess Tax

Input as referred to in paragraph (4) may be submitted

request for return at any time Taxes, to the extent

The Input Tax is derived from the acquisition of Goods

Tax and/or Services Tax of the Tax-Hitting Goods

exported.

(12) For ...

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(12) For Taxable Employers in a Tax Period

performing the submission of Tax Hitting and/or submission

The Services are Tax to Value Added Tax collector, top

Input Tax overload as referred to in paragraph (4)

may be submitted for a refund at any time

Tax, along that Input Tax comes from the acquisition

Taxes and/or Taxable Services from the Hitting

Tax and/or Taxable Services submitted to

The Value Added Tax collector.

(13) The calculation and layout of the excess Tax return

Input as referred to in paragraph (10), paragraph (11), and

paragraph (12) is set by the Director General Taxes.

(14) In the event of a change in the form of an attempt or merge

an attempt or a diversion of the entire company's activities followed

with the change of the right party over the Tax Item,

then:

a. The Input Taxes on the diverted Tax and

which have been credited by the Taxable Businessman who

did a change in the form of a business or by the Employers

Hit the Taxes that did the merger or by

Taxable employers who divert all assets

companies, remain credited and do not have to be paid

back by the Taxpayer;

b. The Input Tax on the diverted Tax Goods and

which is not yet credited by the Old Tax Taxpayer,

may be credited by the new Tax Hitting,

along Faktur Pajpresumably was accepted after the

change of business form or incorporation of efforts or

the diversion of the entire company's activates. "

14. Provisions ...

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14. The provisions of Section 10 are amended, so that it reads as

below:

" Section 10

(1) The Sales Tax of the owed Mewah Goods is calculated

by multiplying the rate as referred to in Section 8,

with the Tax Introduction Base.

(2) Top Sales Tax Luxury items that are already paid in

the time of acquisition or import of the Constituted

Luxury Taxes, may not be credited with the Value Added Tax

nor the Sales Tax of the collected Mewah Goods.

based on this Act.

(3) Taxable Employers Who Export Taxable Goods

Which is a luxury can request back the Sales Tax

For the Luxury Goods paid at the time of the acquisition of Goods

There is a Luxurious Tax that is exported to that export. "

15. The provisions of Section 11 are amended, and in addition to the paragraph (3), paragraph (4),

and paragraph (5), so that Article 11 is all to be read as

below:

" Section 11

(1) The tax on which the tax occurs at the time The submission of the goods is in

Tax or at the time of the submission of the Tax Service Tax or at the time

import the Goods Tax or at other times specified

by the Finance Minister.

(2) In ...

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(2) In terms of payment received prior to the submission of the goods

Hit Tax or before the submission of the Income Tax, when

tax loss is on When payment.

(3) For utilization of intangible Tax Goods from outside

Pabean Region as referred to in Section 4 of the letter d

and utilization of the Income Income Tax from outside the Pabean Region

as it means In Section 4 of the letter e, taxes

occurs at the time of the Tax Revenue or Tax Taxes.

it is starting to be utilized within the Pabean Region.

(4) At the commencement of the utilization of intangible Tax Goods

or the Income Tax Service from outside the Customs Area by the private

or the body within the Pabean Region established by the Minister

Finance.

(5) In terms of payment done before the start

utilization of the intangible Taxes or Necessary Services

The tax is referred to in paragraph (3), when its release

taxes are at the time of payment. "

16. The provisions of Article 12 of the paragraph (1), paragraph (2), and paragraph (3) are changed, and

plus paragraph (4), so that Article 12 is all to

reads as follows:

" Section 12

(1) The Employers of Tax are owed tax on residence or

place of position and place of business activities performed or

another place specified by the Director General of Tax.

(2) At the written request of the Employers Tax, Director

General The tax could set one place or more as

a debt-owed tax place.

(3) In ...

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(3) In terms of import, tax revenue is in place for Goods

There are taxes entered and levied through the General Directorate

Customs and Excise.

(4) For personal or body use of the Hitting

The intangible and/or Taxable Services of the Outside Region

Pabean in the Pabean Region as referred to in

Section 4 of the d and e of the letter, in which case the letter is not in the Cloud Service. The tax occurred on the premises

the person or body is registered as the Tax Wajib. "

17. The provisions of Article 13 of the paragraph (1) to the paragraph (7) are changed, and the paragraph

(8) is removed, so that Article 13 is all to be read as

following:

" Article 13

(1) The Taxable Employers are required to make Faktur Taxes for any

handover of the Tax Goods as referred to in

Section 4 of the letter a or the letter f and for any submission of the Services

There are Taxes as referred to in Section 4 of the letter c.

(2) Deviates from the provisions as referred to in the paragraph

(1), Taxable Employers may create one Tax Faktur

covering all the submission made to the buyer

The Goods of Tax or the recipient of the Services The same tax

for a month of tadwim.

(3) If payment is received before the submission of the Goods

Tax or before the submission of the Income Tax, the Tax Faktur

is made at the time of payment.

(4) When ...

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(4) During the creation, shape, size, procurement, layout

delivery, and the manner of the correcting of the Tax Fakes were set

by the Director General Taxes.

(5) In the Tax Faktur should be noted about

the submission of the Tax Hit or the submission of the Tax Hit Services

which includes:

a. Names, addresses, Mandatory Principal Numbers, as well as numbers and

the date of the Employers Employers Tax that

handing out the Tax or Taxable Services;

b. Name, address, and the buyer's principal number are mandatory.

The tax or income recipient (s);

c. Type, type, quantum, unit price, amount of Jual Price

or Reimburse, and price cuts;

d. Value-added Value Taxes;

e. Sales tax on luxury goods levied;

f. Date of submission or date of payment;

g. Number and date of the Tax Fakture creation;

h. Name, title, and signature entitled

sign the Tax Faktur.

(6) The Director General of Tax can set the documents

certain as Tax Fakes.

(7) The Taxable Employers may create a Tax Faktur Simple

whose terms are set by the Director General of Tax. "

18. The provisions of Article 14 are amended, so it becomes a read as

following:

" Article 14 ...

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" Article 14

(1) Private or unconfirmed persons as

The Taxable Employers are prohibited from making Tax Faktur.

(2) In the event the Tax Fakes have been made, then the person or

the body as referred to in the paragraph (1) must provide

the amount of the tax set forth in the Tax Faktur to the Kas

Country. "

19. The provisions of Article 15 are deleted.

20. The provisions of Article 16 are deleted.

21. Adds a new BAB between the BAB V about the Time and Place

owed taxes and Taxes and BAB VI Reports on

Other provisions, which are made BAB VA about the Provisions

Special, which reads as follows:

"BAB VA

provisions SPECIAL"

22. Add 4 (four) new provisions between Article 16 and Section 17

that are made Article 16A, Section 16B, Section 16C, and Section 16D

in the VA Chapter on Special Terms, respectively

reads as follows:

" Section 16A ...

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" Article 16A

(1) the taxes owed to the submission of Tax and/or

handover of the Services Tax to Tax collectors

Value Added, levied, tuned, and reported by

Additional Value Tax Rector.

(2) The order of the polling, storage, and tax reporting by

The Value Added Tax collector as it referred to

paragraph (1), set by the Minister of Finance. "

" Article 16B

(1) With Government Regulation may be specified that the tax

debt is not levied in part or entirely, either for

while time or for good, or be exempt from

tax imposition, for:

a. activities in certain areas or specific places within

Pabean Region;

b. Submission of certain Taxes or submission of services

utilization of the specified non-tangible Tax Revenue from

outside Pabean Region within the Pabean Region;

e. utilization of certain Tax Hitts from outside the Area

Pabean in the Pabean Region.

(2) Tax ...

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(2) The input tax paid for the acquisition of the Tax Goods

and/or the Income Taxpayer's acquisition of its submission

is not tax-levied Value enhancer, can be credited.

(3) The Input Tax paid for the acquisition of Tax Goods

and/or the acquisition of the Tax Payable over its submission

exempt from the Value of Value Added Tax, cannot

is credited. "

" Section 16C

Value Added Tax is imposed on its own build activities

performed not in a company environment or job

by a person or a body whose results are used itself or

used other parties whose limits and methods are set by

Finance Minister. "

" Section 16D

The Value Added Tax is charged over the submission of assets by

The Employers Who Are In Taxes that are in their original assets

not to be sold, as long as the Value Added Tax that

paid at the time of its performance can be credited. "

23. The provisions of Article 17 are changed, so that it reads as

following:

" Article 17 ...

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REPUBLIC OF INDONESIA

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" Article 17

The concerns and grammar of the polling

with regard to the implementation of this Act,

special has not been set up in this Act, applicable

in the Act on the General Terms and the Terms of Use

Taxation as well as other laws. "

PASAL II

With the enactment of this Act:

a. delay of the Value Added Tax payment and the Sales Tax

For the Luxury Goods which have been granted before the expiring

This Act, will end in accordance with the term

the delay has been given, most slow December 31

1999;

b. Value Added Tax and Top Sales Tax

For business in the field of oil and gas mining,

General mining, and other mining under contract

For Results, Works Contract, or Enterprise partnership agreement

-mining which is still valid at the time of effective

This Act, remains calculated on the terms of the

Contract for the Results, Works Contract, or cooperation agreement

The mining enterprise is up to a contract for

Results, Works Contract, or Enterprise partnership agreement

mining ended. "

PASAL III

This Act may be called "Change Act

The Value Added Tax Act of 1984."

PASAL IV ...

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PASAL IV

This Act entered into force on 1 January 1995.

For everyone to know it, ordering the invitational

This Act with its placement in the State Sheet

Republic of Indonesia.

Passed in Jakarta

on November 9, 1994

PRESIDENT OF THE REPUBLIC OF INDONESIA

ttd

SUHARTO

Reundated in Jakarta

on November 9, 1994

MINISTER OF STATE SECRETARY OF STATE

REPUBLIC OF INDONESIA

ttd

MOERDIONO

SHEET COUNTRY REPUBLIC OF INDONESIA YEAR NUMBER 61

PRESIDENT

REPUBLIC OF INDONESIA

EXPLANATION

TOP

REPUBLIC OF INDONESIA LEGISLATION

NUMBER 11 IN 1994

ABOUT

CHANGES UNDER LAW NUMBER 8 1983

ABOUT THE SUPPLEMENTAL TAX OF VALUE GOODS AND SERVICES

AND THE SALES TAX ON LUXURY GOODS

UMUM

The Republic of Indonesia is a legal state. based on Pancasila and

The Basic Law of 1945 upholds the rights and the obligation of each person, by

because it places taxation as the embodiment of one of the obligations of the statehood

in the framework of national cooperation as a role as well as the inner society

financing the development. In accordance with the provisions of Article 23 of the paragraph (2) of the Basic Law

1945, the taxation provisions which are the cornerstone of the tax bill

are established with the Act. Law Number 8 of 1983 on Tax

Additional Value of Goods and Services and Sales Tax of the applicable Luxury Goods

since 1984, as a replacement for the Sales Tax Act of 1951,

is the cornerstone of the law in the imposition of taxation over domestic consumption.

With the severing of economic social development as a result of national development and

globalization in various fields, it is realized that many forms of activity that aspect

its exposure has not been set up or has not been sufficiently set in Law Number 8 Year

1983. In addition, the Act has not fully accommodated the trust in

The Great Lines of State of the State of 1993. Therefore, it is time that it is time

to fine-tune the Act No. 8 of 1983.

By adhering to the principles of legal certainty, justice, and simplicity, and

the ability of the people, then the direction and purpose of the Act of Number 8

The year 1983 was as follows:

a. Heading ...

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REPUBLIC OF INDONESIA

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a. Towards the nation's independence in State financing and development financing

whose primary source is derived from tax receipts;

b. Further provide legal and justice certainty for the community in

participating in development financing according to its ability;

c. Creating an economic climate that supports increased capital cultivation,

pushed for export, pushed for more new jobs,

improving the preservation of the environment, improving the development of national businesses

especially small and traditional businesses and supports other policies;

d. Control the unproductive consumption patterns in society;

e. The execution of a simple and simple tax bill so that it can push

the Tax Taxes Compliance;

f. Improving the creation of an increasingly capable and cleaner taxation apparatus,

improving services to Wajib Tax including simplification and ease

procedures in fulfillment of taxation obligations, increased supervision over

implementation of such taxation obligations, including upgrades

enforcement of the implementation of applicable law provisions.

By landaying on the direction and purpose of such refinement, then in

Refinement of Law Number 8 of 1983 needs to be reset

provisions regarding tax on consumption in the country, with the points

as follows:

a. In accordance with its system, the Value and Tax Additional Tax Act

The Sales of the Luxury Goods constitute a single as tax on consumption

within the Pabean Region, either goods consumption and service consumption;

b. With consideration of economic, social, and cultural circumstances, not all types of goods

and services are subject to Value Added Tax;

c. The Value Added Tax is imposed on only the added value only and

levied several times on various corporate lines chain eyes;

d. Value enhancers are created due to the use of the production factors at any

the company path in generating, channeling, and trading of goods

or in delivering service services;

e. All costs associated with generating, channeling, and

trading goods or in delivering service services are elements

additional value that is the basis for the Value Added Tax charge;

f. In an effort to achieve a tax burden balance between the people who are

low-income with high-income communities as well as in the

efforts to control the unproductive consumption patterns in society, then

upon submission and/or for the importation of tangible items of luxury,

in addition to the Value Added Tax is also subject to the Top Sales Tax

The Mewah goods which are only levied at the source are on the manufacturer or on

the time of the imported goods;

g. Taxes ...

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g. The sales tax on Luxury Goods cannot be imposed on its own without the

Value Added Tax and is worn only once;

h. The Value Added Tax rate that applies to the submission of a Tax Hit or

The submission of a Tax Hit is a single rate, so that it is easy in

the implementation and does not require a list of the goods or group.

services at different rates;

i. The Sales Tax Rate of Luxury Goods does not subscribe to a single-rate system and

is applied according to the group of items in the Top Sales Tax

The Mewah Goods;

j. In order to encourage exports in particular the export of non migas, over export of goods

Hitting Tax is taxed at a rate of 0% (zero percent). Therefore, the Tax

Additional Value Added due to the acquisition of the Tax Goods and/or

the acquisition of the Tax Revenue contained in the exported Tax Goods

may be either compensated or requested back;

K. Persons or bodies that generate goods, import goods,

trade goods and/or submit services done in

the company's environment or its work is the Employers. Employers who

perform the submission of goods and/or the submission of services that are taxed are

The Employers Are Tax;

l. The Taxable Businessman is required to report his efforts and have a

Confirmation Number of Businessman Taxable, except for Small Entrepreneans who

The border is set by the Minister of Finance. However, in order to not impede the activities

its efforts, to the Small Entrepreneans were also granted the freedom of choice to

be confirmed as a Taxable Businessman and have a Strengthening Number

Taxable Businessman;

m. Tax imposition is based on the Faktur system, so as to the submission

the goods and/or the submission of mandatory services are made to Faktur Tax as a proof of transaction

the handover of goods and/or the surrender of the services that are in tax debt. The Tax invoice

is a proof of tax levies for the tax-levied Employers can

be reckoned with the amount of tax owed;

n. In an attempt to improve the Employers ' compliance with Tax and in order

secure the acceptance of the state, then certain persons or certain bodies

or certain government agencies are appointed to levy, lease, and report

taxes owed to the receipt of the Income Tax or Receiving Services

Tax of the Taxable Businessman, although on the nature of the voting obligation,

the deposit, and the tax reporting is on the Employers Of Taxes that perform

the submission of the Taxpayer or Services to that Tax;

o. Taxable Employers are only required to pay the state between

The Value Added Tax is levied from the buyer of the Tax Prize and/or

The recipient of the Tax Prize with a Value Added Value Tax paid to

the seller of the taxable goods and/or the services provider is Tax;

p. Taxes ...

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p. Input tax paid for the acquisition of Capital Goods may be credited

as for the acquisition of the Tax and/or Taxpayer goods used

for the activities of the venture whose inclusion is in the tax debt, and against the Employers

Hit Tax under the terms of the Second Amendment Act

The 1984 Income Tax Act is charged with Income Tax with

using Norma Count applies crediting special provisions

Taxes Input;

q. In terms of the Value Added Tax paid by the Employers it turns out

greater than the Value Added Tax is levied, then the excess Tax

The Value Added is compensated while the refundaer is only

excess Tax Value Added for Tax Term at the end of the book year

The Businessman of Tax is concerned. If such tax overload

is due to export or because of the Additional Tax collector

The value, then the excess tax can be requested back in any Tax Period;

r. To further enhance the embodiment of justice in tax burden, improve

increase in capital cultivation, drive increased exports, create more

many new jobs, improve the preservation of the environment and

Other policies, need to be given special treatment. Nevertheless in

giving such treatment must remain firmly held in one of the principles within

The taxation Act is enacted and prepared which treatment

is equal to all Taxes or against cases in the field

taxation that is in the nature is equal to clinging to the provisions

applicable laws.

Because it is any grant of ease in the field of taxation if truly

required must remain in reference to the above rules and need to be kept in order to be inside

The application does not deviate from the intent and purpose of the purpose.

The purpose and purpose of it are in particular for the success of sector-sector success

higher-priority economic activity on the scale of the scale.

National.

SECTION BY SECTION

Article I

Figures 1

Article 1

The letter a

referred to the Region of the Republic of Indonesia in which it applies

the laws of the Customs Union are The territory of the Republic of Indonesia which

covers land, waters, and air spaces in the on top of it as well as the places

certain in the Exclusive Economic Zone and the Continental Shelf.

The letter b ...

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REPUBLIC OF INDONESIA

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The letter b

referred to intangible goods is among the other rights of the Brand

Trade, Patent and Copyright.

The letter c

Basically all goods are taxed, unless otherwise specified by

This Act.

The d

1) which is included in the sense of the submission of the Tax Hitting:

a) the Agreement is intended In this provision includes purchasing,

exchange traded, purchase with installments, or agreements another

resulting handover of property rights.

b) The Surrender of Tax Goods may also occur due to the agreement

lease rent or lease agreement for effort (leasing). As for what

referred to the handover due to the lease agreement for effort

(leasing) is the submission caused by the lease agreement

to the effort (leasing) with the rights of the option. Notwithstanding the diversion or

the submission of the rights to the Tax Hitting has not been done and

the payment of the Tax Price Jual Price was done

gradually, but due to the mastery of the Goods

switch from seller to buyer or from lessor to the lessee,

then this Act determines that the submission of the Hitted Goods

Tax is deemed to have occurred at the time the agreement was signed,

unless the current The lower control is real.

The tax hit is happening first. Instead of the

signing of the agreement.

c) What an intermediary trader is a private person or

a body within the company's environment or its work with

own the name of the agreement or bond over and to

the dependents of others by getting certain wages or services,

e.g. commissioner.

The auctioneer here is the auctioneer

Government or designated by the The government.

d) Its own use is to mean the use of the Employers ' interests

On your own, the administrator, or the employee. While giving

free is defined as a given grant without

payment, among other things a sampling of items for promotion

to the relation or buyer.

e) Supplies ...

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e) Supplies of the Goods and Assets according to the original goal

not to be sold, which remained at the time of the dissolution

the company, likened to its own use, so it is considered

as the submission of the Tax Hit.

Special to activas which, according to the original purpose, is not for

to be sold, only charged with the Added Tax Value

if meeting the requirements, that is that the Value Added Tax

is paid at the time the device can be credited.

f) If a company has more than one tax place

owed, i.e., the place for the submission of Tax HitGoods

to other parties, both as central and as branch

the company, then this Act considers that the transfer

of the Between-such Taxes is a submission

The Goods Received Taxes. Referred to within the provisions

this includes the other business locations, representatives, marketing units, and

the like.

g) In terms of consignment, Value Added Tax

which is already paid at the time of the Tax Hit is concerned

submitted for the charge may be credited with the Output Tax

in the Tax Period The transfer of the Cloud Service will be used to provide the following: On the contrary, if the item is not sold, it is sold and it is decided to be returned to the owner

The Tax Revenue, the Businessman Who Accepts it can

use the provisions of the The return of the Revenue is Tax

(retour) as referred to in Article 5A of this Act.

The Surrender of the Tax is consigned by the Employers

Small, in accordance with the provisions of this Act, are not imposed

Value Added Tax.

2) Which is not included in the submission definition Taxable goods

as it is in number 2 as follows:

a) Pretty clear

b) Pretty clear

c) In terms of Tax Hitting has more than one place

venture, both as center and branch of the company, and

The Employers are acquiring the Tax record permission

the taxable tax place of the Director General of Tax, then the transfer

The Tax Revenue from one business place to another

(center to branch or vice versa) is considered to be not

included in the submission of the Goods Taxes, except

the transfer of the Taxable Goods {\cf1} {} {\cf1} {\cf1}

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d) In the event of a change in the business form or incorporation of the venture or

the diversion of the company's assets resulting in also

occurrence The right-to-rule change will be treated as no surrender

The tax item.

The letter e

In terms of services including the services of the transport, Borongan services, services

rental goods, entertainment services, travel bureau services, hospitality services, services

notary, attorney services, accounting services, consulting services, and office services

administration. The meaning of services includes also services that are performed to

generate goods due to orders with materials and instructions from a test.

For example, a tailor who only accepts orders for making clothes without

provides Ingredients. Because the material is provided by a test, then the tailor

is considered to be only a return service submission of

the sewing wages requested or received from a customer or a customer.

The letter f

On essentially all services are taxed, unless otherwise specified by

This Act.

Letter g

The use of the Tax Retainer for its own benefit or grant of the Service

-Hit Tax for free- dalarn notions of service submission

Hit Tax, with consideration to maintain the same treatment

as in the use of the Tax Goods for

self-interest or submission of free goods by the Businessman

Taxable.

The letter h

Is clear enough

Letter i

Clearly enough

Letter j

In the trade sense including the exchange of goods.

The letter k ...

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REPUBLIC OF INDONESIA

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Letter k

Employers can be of individual or body business that can be

limited liability, commander-in-law, Property of the Country or

Regions with names and in any form, fellowship, perseroan or

other sororities, irma, kongsi, cooperative societies, foundations, institutions,

form of fixed effort, and other forms of effort. Entrepreneur Understanding is limited

to a person or entity that performs business activities in the environment

the company or its work. In the case of the Government instance performing

a business activity that is not in order to perform a common task

governance, then the Government instance is included in the sense

other forms of effort and are treated as a Entrepreneur.

Letter l

The Small Employers in this Act are based on

gross circulation amount (turnover) in one year is allowed to

to be confirmed to be the Businessman Involved Tax. If to be

Employers Tax, then the rights and obligations are just like the Employers

Hit Tax in general.

The letter m

Change of the shape or nature of the item occurs due to or it does

one processing processes that use one production factor or more,

including activities:

-assemble:

merge the loose parts of a item into goods

half so or item so, like assemblaging cars, electronic goods,

rurnah furniture, et cetera;

-cook:

processing It's the heating stuff. The definition of heating

includes boiling, smoking, smoking, baking and frying,

either mixed with other ingredients or not;

-mixing:

unifying two or more elements (substance) to produce one or

more items;

-packaging: ...

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-packing:

placing an item into an object protecting it from

the damage and/or to increase its marketing power;

-bottling:

inserting a drink or liquid object into a closed bottle

according to a certain way;

-mining:

taking natural resource results from the surface or from within

the land, both on land and at sea;

-provides the food and beverage done by the effort

catering;

and Other activities that can be used with that activity, or

tell people or other bodies to perform such activities.

The letter n

To calculate the amount of the taxable tax, the need for a Base Imposition

Tax. In the event of the application of the Jual Price or Reimburse or Import Value or

The Export Value will incur injustice or because of the Price of Jual or

The replacement replacement is set, then the Finance Minister can determine the Value

Other as a Tax Introduction.

The letter o

The entire cost requested or should be requested by the corresponding seller

with the submission of the Tax Hit such as the shipping expense, the warranty fee,

commission, premium insurance, installation charges, engineering help costs, and other costs

others, including in Jual Price. Not included in the Jual Price is

The Value Added Tax and Sales Tax Over the Luxury Goods

is levied at the time of the delivery of the Tax Hit. Deductable

of Jual Price is a discount cut such as cash or rabat,

throughout still in the limits of good merchant habit, and listed

in the Tax Faktur. If Employers are Tax in addition to publishing Faktur

Tax also publishes a sales invoice, then the discount that is listed

in those Tax Fakes as well as the price cut listed in the invoice

sales. Not included in the definition of a price cut is a bonus,

premiums, commissions, or other services, which are given in order to sell

the Tax Revenue.

The p ...

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Letter p

Pretty clear

Letter q

The Import Value which is the basis for the Tax Introduction is the import benchmark price

or Cost Insurance and Freight (CIF) as the basis for the import calculations

plus all costs and other levies according to regulatory provisions

Pabean laws.

The letter r

referred to with the buyer including state institutions.

The letter

referred to the recipient of the services included State institutions.

Letter t

Quite clear

Letter u

The Goods for Tax Revenue, or the recipient of the Goods

evidence

tax levies. The value-added value tax is

The input tax for the buyer of the taxpayer or the recipient of the Tax Prize

or the Taxpayer of the Goods, which is status as a businessman with the tax

Tax.

Letter v

A Taxable Businessman who surrenes the Tax or Services Hitting Goods

Taxes are required to collect the Value Added Tax. Taxes are levied by

The tax is called the Output Tax.

The letter w

The export value can be known from export documents, for example the price that

is listed in the Export Notice of Goods (PEB).

The letter x ...

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The letter x

In order to improve the Taxable Businessman's compliance in

carry out its tax obligations as well as in order to secure

state acceptance, certain persons, certain bodies, or instances

Certain governments may be designated as Value Added Tax Collever.

Figures 2

Section 2

Verse (1)

The influence of the relationship As special as this Act is,

There is a possible price. repressed lower than the market price. In

this, the Director General of Tax has the authority to make adjustments

The price of Jual or Reimburse which is the basis of the Tax Introduction at the price

the fair market that is applicable in the free market.

Verse (2)

The preferable relationship between Employers with Tax with the receiving party

the submission of Tax and/or Taxable Services may occur because

the dependence or attachment of one with the other caused because:

-the ownership or inclusion factor;

-the presence of mastery through management or the use of technology.

In addition to those on top, the special relationship between the private

can also occur due to a blood connection or because of marriage.

a) The special relationship is considered to exist if there is an entitlement relationship

which is a capital inclusion of 25% (twenty-five percent) or

more, whether directly or indirectly.

Example:

If PT. A total of 50% (50%) of the shares of PT. B, ownership

shares by PT. It is a direct inclusion. Next time, if PT. B

It has 50% (fifty percent) of PT shares. C, then PT. A as

a shareholder of PT. B) indirectly has the inclusion of the PT.

C by 25% (twenty-five percent). In that case, between PT. A, PT.

B, and PT. C is considered to be a special relationship.

If ...

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If PT. It also has 25% (twenty-five percent) of PT shares. D, then

between PT. B, PT. C, and PT. D is considered to be a special relationship.

The relationship of such ownership on top can also occur between people

personal and body.

b) The relationship between such employers is described in the letter a can also

occurs due to mastery through management or use of technology,

neutrality is not a proprietary relationship.

The special relationship is assumed to exist if one or more companies are in

under the mastery of the businessman The same. Also the relationship between

several companies that are in the same employers ' mastery

that is.

c) which is referred to as a blood family relationship in the lineage

straight one degree is father, mother, and child, while the relation of the family

as blood in the lineage to the side of one degree is older brother and the blood of the blood.

sister.

Which is referred to as a temporary family in a straight line of one

degrees are in-laws and stepson, while the familial relationship

in the lineage to the side of one degree is sister-in-law.

If between The husband's husband has a treasure separation agreement and

income, then the relationship between the husband of the wife is included in

the understanding of the special relationship under this Act.

Figure 3

The provisions of Article 3 set about Strengthening Entrepreneurs with Tax, deleted

and moved inside Legislation on the General Terms and the Tata Ways

Taxation.

Figures 4

Pretty clear

Figures 5

Article 3A

Verse (1)

Employers performing the submission of Tax and/or submission

Hitting Services in Pabean Region and/or performing export of Goods

Getting Tax is required:

a. have ...

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a. have a Taxable Amplifier Number With A Tax;

b. Levy of debt owed;

c. balance out Value Added Tax, which still must be paid in terms

The Output tax is greater than the credited Input Tax,

and paid the Sales Tax for the Mewah Goods. debunking;

d. reported a tax count.

Verse (2)

Small entrepreneurs are excluded from the obligation to carry out

This Act. However, if Small Employers choose to be confirmed

to be Taxable Employers, then this Act is fully valid

for the Small Employers.

Verse (3)

The Value Added Tax is owed For the utilization of the Tax Hit

intangible or Taxable Services, from outside the Customs Area, must be levied

by a person or body that utilies the Taxpayer not

embodied or the Taxpayer's Services.

Number 6

Article 4

Letter a

The redness of the goods is taxed must meet the terms as

following:

-tangible items that are submitted are Tax Goods,

-the intangible items that are submitted are the Tax Goods

intangible,

- Submission is done in the Pabean Region,

-submission is performed within the enterprise or job environment

The entrepreneur is concerned.

The letter b

The tax is also levied at the time of import of goods. The poll was conducted through

the Directorate General of Customs and Excise.

Different ...

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In contrast to the transfer of the Goods to the letter a, then

anyone who includes the Tax Revenue into Pabean Region without

pay attention to whether it is done in a corporate environment or

work or not, it remains taxed.

The letter c

The tax-owed services of the taxpayer must meet the terms as

following:

-the services submitted are Tax Replaced Services,

-submission is performed within the Pabean Region,

-submission is performed within the company's environment or job

The entrepreneur is concerned.

Letter d

To be able to provide the same tax imposition with the import

Tax Revenue, then for the intangible Tax Goods derived

from outside the Pabean Region utilized within the Pabean Region as well

is taxed.

Example:

Employers "A" based in Jakarta acquired the rights to use

the brand the businessman "B" is based in Hong Kong. Top

utilization of the brand by the "A" Employers in the Pabean Region,

taxable Value Added Tax.

Letter e

The services derived from outside the Pabean Region utilized within the Region

Pabean taxed under this Act. For Example, Businessman

Hit Tax "C" in Surabaya utilised the Tax Taxpayer Services "B"

based in Singapore. At the utilization of the Tax Service,

owed the Value Added Tax.

Letter f

The Surrender of Tax Goods from within the Pabean Region to the outside of the Area

Pabean is taxed according to this Act.

Number 7 ...

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The number 7

Article 4A

The type of goods that are not subject to a Value Added Tax with

The Government Regulation is based upon items groups as

following:

a. Agricultural products, plantation products, forestry results, which are plucked

directly, taken directly, or directly tapped, from the source, such as

padi-padian, palm oil, rubber;

b. Farm produce, hunting/arrest, or captivity, which

is taken directly from its source, such as a beef cut, poultry;

c. Like tuna, cucumber, shrimp;

d. Mining and drilling goods, which are taken directly from

sources, such as crude oil, salt;

e. the essential essential items needed by the people

many, such as rice, salt beriodium;

f. some types of goods, because to avoid tax imposition

multiple with those levied by the Local Government, e.g. Tax

Development I and the Spectacle Tax;

g. valuable letters;

h. electric, except for luxury housing;

i. The clean water is channeled through the pipes (PAM water).

The retainer of the type of services that the Value Added Tax is not charged with

The Government Regulation is based on the services groups as follows:

a. services in the field of medik health care, such as a general doctor, doctor

specialist;

b. services in the field of social services, such as orphanages, funeral services;

c. services in the mail delivery field;

d. services in the fields of banking, insurance, and rent for effort with option rights;

e. services in religious fields, such as granting sermons or dawah;

f. services in the field of education;

g. services in the arts field, such as traditional art staging;

h. services ...

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h. services in the field of broadcasting, such as radio and television broadcasting that are not

are advertising;

i. services in the area of public transport, such as public transport on land and at sea;

j. services in the field of labor, such as the services holding exercise for

labor;

k. services in the hospitality field;

l. public telephone service coin-box and telegram service.

Figures 8

Article 5

Verse (1)

With consideration that:

-there is a need for a tax burden balance between the consumer that

low-income consumers with high-income consumers,

-there needs to be a consumption pattern control over the Tax Goods

Luxury,

-need for protection against small or traditional manufacturers,

-need to secure state acceptance, then over the submission

The Expensive Tax goods by the manufacturer or the top imports

The goods are A tax that is a luxury, in addition to being charged with Tax

Value Added, too Sales Tax for Luxury Goods.

The Sales Tax Reintroduction of the Luxury Items against the import of the Goods

The Luxury Taxes are not paying attention to who ' s importing

The Goods got the Tax as well as not notice whether the import is

done constantly or just once. In addition, the following

Sales Tax for the Luxury Items against a Handover of the Goods

The Luxurious Taxes do not notice whether a section of

The Taxpayer has been charged or not Taxes

Sales of the Mewah on the previous transaction.

Verse (2)

The general understanding of the Input Tax applies only to the Additional Tax

The value and is not known in the Sales Tax of the Goods Fancy. Because

it's the Sales Tax For the paid-up Goods could not

be credited with the Sales Tax For the owed Mewah Goods.

With ...

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REPUBLIC OF INDONESIA

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Thus the principle of the solution is only one time alone that is at the time:

a. the submission by Pabrikan or the Taxable Goods Manufacturer

Is Posh, or

b. The import of the Taxable goods is a luxury.

The submission at the next level is no longer taxed.

Figures 9

Article 5A

In terms of the Retour Tax is turned back (retour)

by the buyer, then the Value Added Tax and Sales Tax of the Goods

The Luxury from the returned Tax Revenue reduces:

a. Output Tax And Sales Tax On Debt-owed Goods

by The Seller Tax-Hitting,

b. The Input Tax From The Businessman has the buyer's Tax, in the case of Tax

Input for the Goods. The returned Tax has been

credited,

c. Expenses or possessions for the Employer of the buyer Tax, in the event of a tax on

Those returned Tax items have been charged as

charges or have been added (diapitalized) in the acquisition price

possessions That.

Figures 10

Section 6

Verse (1)

Quite clear

paragraph (2)

In this provision, the tax is the Additional Tax

Value only or Value Added Tax and Top Sales Tax

A Luxury.

Verse (3)

Pretty clear

Figure 11 ...

PRESIDENT

REPUBLIC OF INDONESIA

-18-

Figures 11

Article 7

Verse (1)

Quite clear

Verse (2)

The Value Added Tax is the tax levied upon Item consumption

Tax in Pabean Region. Because of this, the Tax Goods that

are exported or consumed outside the Customs Area, are charged with Taxes Per-

value-added at 0% (zero percent). Tariff imposition 0% (zero percent)

does not mean the release of Value Added Tax imposition. With

as such, the paid Input Tax of exported goods remains

can be credited.

paragraph (3)

Based on economic development and/or improvement

of the fund needs For development, the Government is authorized to change

The Value Added Tax rate is a low yield of 5% (five percent) and

at a height of 15% (fifteen percent) by staying on the principle of tariff

single. The fare change as referred to in this paragraph, is proposed by

Government to the People's Representative Council in the course of discussion and

The drafting of the State Budget and Shopping Budget.

Number 12

section 8

paragraph (1)

The sales tax rate for luxury goods may be specified in some

tariff grouping, i.e. the lowest tariff of 10% (ten percent) and the rate

at 50% (fifty percent). The difference between those rates

is based on the Possed Tax of Goods clustering

for which the sale tax is also charged with the Mewah Goods

as referred to in Article 5 of the paragraph (1).

Verse (2) ...

PRESIDENT

REPUBLIC OF INDONESIA

-19-

Verse (2)

The Sales Tax of the Luxury Goods is the tax on

consumption of Classified Tax goods within the Regions Customs.

Therefore, the Luxurious Tax goods exported or

consumed outside the Pabean Region, are charged with the Sale of Goods

Mewah with a 0% (zero percent) tariff. The sale tax of luxury goods that

has been paid for the acquisition of the Luxury Taxpayer that

exported could be requested back.

Verse (3)

By reference to the considerations as set out

in the Description of Section 5 of the paragraph (1), then the grouping of items

exposed to the Sales Tax of the Mewah Goods is primarily based on the level

The ability of the community group to use those items,

in addition are based on the value of the community In general.

A relationship with that, a high tariff is imposed against baranggoods

that is only consumed by the high-income society and

the items whose contributions need to be limited. In regards to

items that are widely consumed by the public many need to be levied

The Sales Tax Over the Luxury Goods, then the rate used is the low

rate.

Verse (4)

Enough clear

Figures 13

Article 9

Verse (1)

The way of calculating the debt tax is by multiplying the amount of Price

Jual, Reimburse, or Import Value with tax rates as specified

in Article 7 of the paragraph (1). This debt tax is the Output Tax, which

is levied by Taxable Employers.

Example:

a) The Businessman Who Receives Tax "A" sells Cash In Taxable Goods with

Jual Price Rp 25,000.000.00.

The owed Value Added Tax

= 10% x Rp 25.000.000.00 = Rp 2,500.000.00

Tax ...

PRESIDENT

REPUBLIC OF INDONESIA

-20-

A Value Added Tax of Rp 2,500,000.00 is

The Output Tax, which is levied by the Taxable Tax "A".

b) The Employers Are The "B" tax made the delivery of the Income Tax Service

by acquiring Reimbursed Rp 20,000.000.00.

Additional Value Added Tax

= 10% x Rp 20.000.00 = Rp 2.000.00 = Rp 2.000.000.00

Additional Income Tax of Rp 2,000.000.00 is

The Output tax, levied by the Employers "B" Tax.

c) A person imported the Tax Hitch from outside the Customs Area

with an Import Value of Rp 15.000.000.00.

The Value Added Tax is levied through the Directorate General of Bea

and Excise

= 10% x Rp 15.000.00 = Rp 1,500.000.00

Verse (2)

The Input Tax has been paid by the Taxpayer Payable on Time

acquisition or import of Goods or Income Tax items

can be credited with the Output Tax Employers Tax

at the time of handing out the Goods or Services to Tax-Hitters.

The Input Tax Credit for the Output Tax above is done

in the Tax Period same.

Verse (3)

The difference referred to in this paragraph shall be subject to the State Kas according to

the provisions as set forth in the Law on the General Terms

and the Taxation System.

Verse (4)

The Input Tax referred to in this paragraph is the Input Tax that can

be credited.

It can happen in a Tax Period there is an Input Tax that can

be credited greater than the Output Tax. The Input Tax overage

may not be reasked, but may be compensated at the time

The next tax. However, if the company is dissolved before the book year

ends, then the excess pay may be requested back at the time

the disbandment of the company. A return for the excess of the payment is new

provided after an inspection.

Example: ...

PRESIDENT

REPUBLIC OF INDONESIA

-21-

Example:

Tax of May 1995:

Output Tax = Rp 2.000.000.00

The Input Tax may

be credited = Rp 4,500.000.00

_________________ (-)

More paid taxes = Rp 2,500,000.00

The more paid taxes may not be reasked, but

may be compensated in the Tax Period of June 1995.

The Tax Period of June 1995:

Output tax = Rp 3.000.000.00

Input tax that can

is credited = Rp 2.000.000.00

__________________ (-)

underpaid taxes = Rp 1,000.000.00

More paid taxes from

Taxes May 1995 = Rp 2,500,000.00

__________________ (-)

More paid taxes June 1995 = Rp 1,500,000.00

If the company in June 1995 is dissolved, then overload

tax payments in the month June 1995 can only be returned after

is conducted a check.

Verse (5)

In this paragraph, the tax owed handover is

the submission of goods or services in accordance with the provisions of this Act,

is charged with the Value Added Tax.

Businessmen ...

PRESIDENT

REPUBLIC OF INDONESIA

-22-

The Taxable Businessman in a Tax Term commits a submission

which is a tax owed and a tax-owed submission, only

crediting the Input Tax with respect to the submission that

is in tax debt. The tax-owed handover section should be able

is known for certain from the bookkeeping of Employers In Taxes.

Example

The Employers for Tax do two such submission:

-submission Tax debt = Rp 25.000.000.00

Output tax = Rp 2,500.000.00

-submission not

tax debt = Rp 10,000.00

Output Tax = NIHIL

The Input Tax is paid for the acquisition:

-Goods Hitting Tax and

Tax Hitting

related to submission

tax debt = Rp 1,500.000.00

-Goods Hitting and

The Tax Hitting

relates to submission

which is not taxable = Rp 800.000.00

According to this provision, the Input Tax may be credited with the Tax

Output of Rp 2,500.000.00 only Rp 1,500,000.00.

Verse (6)

In this paragraph, the tax debt submission is

the submission of goods or services in accordance with the provisions of this Act,

is charged with the Value Added Tax.

In ...

PRESIDENT

REPUBLIC OF INDONESIA

-23-

In case the Input Tax for the tax owed submission cannot be

known for certain, then the Input Tax Credits are calculated

based on the guidelines set by the Minister of Finance, which

is intended to provide ease and certainty to the Employers

Hitting Tax. The Finance Minister may bestow the authority to

set the guidelines to the Director General of the Tax.

Example:

The Tax Revenue is doing two such submission:

-tax debt submission = Rp 35.000.000.00

Output tax = Rp 3.500.000.00

-submission not

tax debt = Rp 15,000.00

Output Tax = NIHIL

The Input Tax is paid for Acquisition of Goods and Services HitGoods

Taxes related to the overall submission of Rp 2,500,000.00,

while Input Tax relating to debt-owed surrender

taxes are not known to Sure. According to this provision, the Input Tax

of Rp 2,500.000.00 is not entirely credited with the Tax

Output of Rp 3,500.000.00.

Verse (7)

The Finance Minister may bestow the authority to set the guidelines

The calculation of the Input Tax creditor as contemplated in this paragraph

to the Director General of the Tax.

Verse (8)

The Input Tax is essentially able to be credited with the Output Tax, will

but for expenses as referred to in this paragraph, the Tax

Its input cannot be credited.

The letter a

It is pretty clear

The letter b ...

PRESIDENT

REPUBLIC OF INDONESIA

-24-

The letter b

referred to the expense directly related to

venture activities are expenses for production activities, distribution,

marketing, and management. This provision applies to all areas of effort.

For the Input Tax may be credited, it must also be eligible that

such expenses are related to the tax owed submission

Value Added. Therefore, despite an expense. have

complies with the terms of direct connection with the venture activities, still

is possible the Input Tax cannot be credited, i.e. if

the expenses referred to have nothing to do with the debt-owed submission

Value Added Tax.

Font c

Pretty clear

Letter d

Pretty clear

Letter e

A Simple Tax Faktur is a Tax Faktur as referred to in

Article 13 of the paragraph (7). Because the Simple Tax Faktur is a Tax Faktur

whose contents do not list a full set of things set up in the Article

13 paragraph (5), then the Simple Tax Faktur is only a levy proof

Additional Taxes Value and cannot be used as a crediting basis

Input Tax.

Font f

Quite clear.

The g

is quite clear.

Letter h

There can be a Taxable Businessman, new pay the Value Added Tax

owed by the acquisition or utilization of the Goods Tax or Services

Hitting Tax after issuer of tax decree. The Value Added Tax that

paid for the tax rate is not a Input Tax

can be credited.

The letter i ...

PRESIDENT

REPUBLIC OF INDONESIA

-25-

Letter i

In accordance with the self assessment system, the Employers are mandatory.

report all of its business activities in the Notice of Time Tax

Value Added. In addition, to the Taxable Businessman has also been

given the opportunity to do a correcting of the Notice of Time

The Value Added Tax, so it would have been appropriate if the Input Tax

was not reported in The Value Added Value Tax Notification letter

cannot be credited.

Example:

In The Term Notices Note:

The Output Tax = Rp 10,000.000.00

Input Tax = Rp 8.000.000.00

From the known examination result:

The Output Tax = Rp 15 .000.00

Input Tax = Rp 11.000.000.00

In this case, the credited Input Tax is not Rp

11.000.000.00 but remains at Rp 8,000.000.00, corresponding to

reported in the Notice of Time.

Thus, the calculation of the results of the examination:

The Output Tax = Rp 15.000.000.00

Input Tax = Rp 8.000.000.00

_____________________ (+)

Less Pay according to results

checks = Rp 7.000.000.00

Less Pay by Mail

Notice = Rp 2.000.000.00

____________________ (-)

Still underpaid = Rp 5,000.000.00

Verse (9) ...

PRESIDENT

REPUBLIC OF INDONESIA

-26-

paragraph (9)

This provision allows the Businessman Taxable to credit the Tax

Input with the Output Tax in a non-equal Tax Period, which

is caused among other because of the late Tax Fakture accepted. The crediting

Input Tax in the Inequal Tax is only

allowed when done does not exceed the third month after

end of the book year in question. In the event that the term

has been exceeded, such Input Tax creditor may be done through

the Value of Value Added Value Letter Notices

in question. Both ways of such creditors can only be done if

The Input Tax is concerned not to be charged as a fee or not

added (dicapitalized) to the price of the Tax Hitting

or the Hitting Services. Taxes are concerned, and against the Employers Tax

not yet conducted a check.

Verse (10)

The excess Tax Input in a Tax Term, in accordance with the provisions

on paragraph (4), is compensated with Output tax on Tax-Time

next. However, if the Input Tax overload occurs in

The Tax Period at the end of the book year, then the overage in the Input Tax

may be submitted a request for a return (restitution).

Verse (11)

In order to drive export, over the overage in Input Tax as

referred to in paragraph (4), which is due to export, may be submitted

an application of its return on any Tax Period.

Verse (12)

Given the Output Tax that the Employers are supposed to be levied

The taxes that perform the submission of the Goods Tax and/or the submission of the Services

Taxable Taxes are levied by the Value Added Tax collector, So that the Tax

Input from the Goods Goods and/or the Services Tax is submitted

to the Value Added Tax Repayment is a more paid tax,

then over the overage in Input Tax as referred to in paragraph (4), which

is due to the tax rate by the Value Added Tax collector,

may be submitted for its development request at any Tax Period.

Verse (13)

Quite clear

Verse (14) ...

PRESIDENT

REPUBLIC OF INDONESIA

-27-

Verse (14)

These provisions are intended to not weigh the Value Added Tax on

the company that performs the change in form of effort, or Enterprise integration may not be used for use with the Cloud Service. As per the terms as

referred to in Section 1 of the letter d number 2) the letter d), the submission of the Hitted Goods

Tax in order to change the business form, or merger of the effort, or

the diversion of the entire company's assets is not included in the sense

the submission of the Tax Hit, then:

a. The Input Taxes on the Diverted Tax Items and which have been

are credited by the Distracting Taxes that diverted the Hitted Goods

The tax, should not be repaid by the Tax Hitters

it is.

b. The Input Tax on the diverted and unsaved Goods

is credited by the Taxpayer Who Diverted the Hit.

The tax, may be credited by the Taxpayer Who Received A Tax

received a diversion. It has the taxes along the Faktur

Pajaknýa was accepted after a change in the business form or

merger or diversion of the company's assets.

Figures 14

Section 10

Verse (1)

How to calculate the Sales Tax of a debt-owed Luxury is

with Multiplies the value of the Jual or Import Value with the tax rate as

specified in Section 8.

Verse (2)

In contrast to the Value Added Tax is levied on any level

submission, Sales Tax Top of the luxury item is picked only at the rate

handover by Businessman Taxable who produces Tax Goods

Which is a luxury or for the import of Belonging To Tax

Luxury. As such, the Sale Tax of the Luxury Goods is not

is the Input Tax so it cannot be credited. Accordingly,

The Sales Tax of Mewah Goods can be added to the Goods price

The Tax is concerned or charged as a fee as per the provisions

The Income Tax laws.

Example: ...

PRESIDENT

REPUBLIC OF INDONESIA

-28-

Example:

Employers In Tax (PKP) "A" Import Goods With Value

Import Rp 5,000.000.00. Such Tax items, in addition to being charged with Taxes

Value Added, for example are also charged with the Sale of Goods

Mewah with a 20% tariff. As such, the supplemental Tax calculation

The Value and Sales Tax of the Mewah Goods owed to the import of the Goods

The Tax is:

-Tax Introduction = Rp 5.000.000.00

-Additional Tax Value:

10% x Rp 5.000.00 = Rp 500,000.00 = Rp 500,000.00

-Sales Tax Over Luxury Goods:

20% x Rp 5.000.000.00 = Rp 1.000.000.00

Then, PKP "A" uses the Taxpayer Items as part

of ${\cf1 \" \" \\" \" \" \" \" \" \" \" \" Sales Tax On Luxury Goods 35%. By

due to the Sales Tax of the Mewah Goods that have been paid for the Goods

The imported Tax is not credited, then the Sales Tax

For the Mewah Item amounting to Rp 1,000.000.00 can be added to the

The price of the Goods Hitting generated by PKP "A" or charged

as a fee.

Then, PKP "A" sells the Taxable Goods that it produces to

PKP "B" at Jual Price Rp 50,000.000.00. Then, the Tax Counts

Value Plus Value and Sales Tax Over the owed Mewah Goods

is:

-Basic Income Tax = Rp 50,000.000.00

-Value Added Tax:

10% x Rp 50,000.000.00 = Rp 5.000.000.00

-Sales Tax Over Luxury Goods:

35% x Rp 50,000.000.00 = Rp 17.500.000.00

In this example, PKP "A" can credit the Value Added Tax

of Rp 500.000.00 above against Tax Value add up to Rp

5.000.000.00.

While the Sales Tax of the Mewah Goods of Rp 1,000.000.00 is not

can be credited, either with a Value Added Tax of Rp

5.000.000.00 and with the Sale Tax of Mewah Goods of Rp

17,500.000.00.

Verse (3) ...

PRESIDENT

REPUBLIC OF INDONESIA

-29-

Verse (3)

Quite clear

Figures 15

Section 11

Verse (1)

The Value Added Tax is essentially a acrual principle,

meaning tax loss occurs at the time of the transfer of the Goods Tax or

at the time of the delivery of the Income Tax, or at the time of the import of the Goods Tax,

although for such submission has not been or has not yet been fully accepted

the payment. In certain respects, the Finance Minister can determine the moment

another as when it is tax-terleable. While other taxes are required in the

things when the tax is difficult to set or may incur

injustice. When taxes are required between others in the event

a change of provision, that is to determine which provision is applied

for a transaction that its provisions undergo a change.

Verse (2)

In contrast to the terms as referred to in paragraph (1), in the event

the payment was received before the submission of the Tax Hit or the submission

The tax-service, in which the tax revenue occurred at the time of receipt of the payment.

If the payment is done in part or is payment

the advance Prior to the submission, the debted tax was calculated

based on the partial payment or payment of that advance. The tax

owed at the time of partial payment or advance payment

is calculated by the tax owed at the time of the handover.

Verse (3)

In the case of the person or person of the exploit There are no

entities from outside the Pabean Region in the Pabean Region, or capitalize

The Income Tax Services from outside the Customs Area within the Pabean Region, then

taxes occur at the time of the person or person. It starts

using the intangible Taxes or Taxpayer Services

within the Pabean Region. This is connected to the fact that

handing out the intangible tax of Goods or Services to that Tax

is outside the Pabean Region, so it cannot be confirmed as

The Employers Are Tax. Therefore, when the tax break is no longer

is associated with the time of submission, but is associated with the time of utilization.

Verse (4) ...

PRESIDENT

REPUBLIC OF INDONESIA

-30-

Verse (4)

Quite clear

paragraph (5)

Deviation from the terms as referred to in paragraph (3), in case

payment Before the start of the use of the Tax Hit Item

intangible or Taxable Services, taxes were in place at the time

payment. If the payment is made as partial or is

advance payment prior to the start of the utilization of the Tax Hit

intangible or Taxable Services, the owed tax is calculated based on

payment In part or payment of the advance. Debt tax

at the time of partial payment or advance payment is calculated

with the taxes owed at the commencement of utilization.

Figures 16

Article 12

Verse (1)

Understanding The businessman with a tax on the terms of this paragraph is

A businessman who performs the activities referred to in Article 4

letters a and/or letters c and Businessmen With Tax-doing Exports

The Tax-Item Is Required. as referred to in Article 4 of the letter f. Need

note that for Employers who perform activities as

referred to in Section 4 of the letter a and/or the letter c, the Businessman Yang's understanding

The tax includes both the Employers who have registered and have had Number

The Strengthening Businessman is Tax as referred to in Article 3A paragraph

(1) as well as the Businessman Who Should Be Confirmed As Businessman

Tax but has not yet had a Businessman's Confirmation Number To Be Taxable.

While specifically for the Employers who do export the Goods Tax,

understanding The Taxable Businessman includes only the Employers who have registered

and have the Businessman's Confirmation Number as Taxes as

referred to in Article 3A paragraph (1). If the Taxable Businessman has

one or more of the business activities outside of residence or place

the embassy, then any such place is the site

tax, and the Taxable Taxpayer is in question required to register for

obtaining the Businessman's Strengthening Tax of Tax. If Employers

Hit Tax has more than one owed tax place in

the one-office building of the Directorate General of Taxes, then for places

The debt tax is sufficient to have one Number Entrepreneur Amplifiers

Hit Tax.

Verse (2) ...

PRESIDENT

REPUBLIC OF INDONESIA

-31-

Verse (2)

If the Businessman Gets Tax Owed in more than one place

venture activities, then the Employers are in the

The liability obligations may apply in writing to

The Director General of Tax to select one or more places as a place

tax.

The Director General of the Tax before provide a decision to need to do

a check to convince among others that:

-the transfer of the Goods to the Tax or the submission of the Tax Service

for all activities the business activities are only done by one or more

places of business activities,

-administration of sales and financial administration hosted

centered on one or more business activities.

Verse (3)

Quite clear

Verse (4)

Quite clear

Figures 17

Section 13

Verse (1)

The creation of a Tax invoice is mandatory for any Employers Tax,

because the Tax Faktur is proof that is the means of execution of workways

(mechanism) crediting of Value Added Tax.

For any transfer of the Goods to the Tax or the submission of the Tax Payable

by Employers Payable must be made one Faktur Taxes.

Verse (2)

Deviates from the provisions as referred to in paragraph (1), to

ease the administrative load, to Taxable Taxes

to create one Tax Faktur that includes all handover of the Goods

Taxes or submission of the Tax Taxpayer that occurred during one the unwim month

to the same buyer or the recipient of the same Tax Hit, which

called the Combined Tax Faktur.

Creation ...

PRESIDENT

REPUBLIC OF INDONESIA

-32-

The creation of the Joint Tax Fakture does not require the Director General's permission

Tax.

Verse (3)

See explanation of Article 11 of the paragraph (2).

Verse (4)

Given in the business world is made possible the creation of a sales invoice

done after the handover of the Goods Taxes or submission

The tax-service tax, then the Director General of Tax was given the authority to

set out when the Tax Faktur should be created.

Similarly, the Director General of Tax is authorized to set

uniformity of shape, size, procurement, layout of delivery, and layout

The Real Tax Fakes. In this paragraph referred to in this section,

procurement of Tax Fakes is the setting up of who holds

the Tax Fakes form and the requirements to be met. For example,

the procurement of Tax Faktur forms may be held or printed alone by

Employers with other administrative forms, sizes, and technical requirements

set by the Director General of Tax.

Verse (5)

The Tax Fakture is a proof of tax levies and can be used as

the means to credit the Input Tax. Therefore, the Tax Fakes must

correct, both formally and materially. Tax invoices must be filled

in complete, clear, correct, and signed by a company official who

appointed by the Taxpayer Payable to sign it. The tax invoice

which is not filled in accordance with the provisions in this paragraph may result in the terms of this section, which may result in an uncredited

tax on which it is not credited

in accordance with the provisions in Section 9 of the paragraph (8) of the letter f. Tax invoices

The charge in accordance with the provisions in this paragraph is called Tax Fakture

Standard.

Paragraph (6)

deviates from the provisions as referred to in paragraph (5), Director

Tax General can determine the usual documents used

in the business world as a replacement for the Standard Tax Faktur.

Conditions ...

PRESIDENT

REPUBLIC OF INDONESIA

-33-

This provision is required because:

1) The sales Fakes used by the Teiah Employers are known to

the vast community and meet the administrative requirements as a Faktur

Tax. For example, payment cookies and airplane tickets.

2) For the presence of tax levies there must be a Tax Fakes, whereas

the party that is supposed to create a Tax Faktur, that is the party

handing over the Hitting Goods Taxes or Services are taxable, outside

Pabean Region. For example, in terms of the import of the Tax Goods, the document

certain imports may be specified as a replacement for the Tax Faktur.

Verse (7)

To accommodate the submission of the Goods or Tax Hitting or submission

The services are received Taxes done directly to the end consumer and

the delivery of the Goods for Tax Goods or the submission of the Tax Prize

to the buyer of the Tax Goods or Taxable Services recipient

is known his identity, the Director General of Tax can set the evidence mark

submission or sign of evidence payments that meet the requirements as

Faktur Simple Tax. Simple Tax invoices may not be used as

the means for the Input Tax Credit as per the provisions as

referred to in Section 9 of the paragraph (8) of the letter e.

A little-minute Simple Tax Faktur needs to load:

1) Name, address, Mandatory Principal Number, as well as number and date

The Employer Of The Businessman has Tax handed over the Tax Hitting

or Services Taxable;

2) Sort of, type, and quantum;

3) The amount of Jual Price or Reimburse included taxes or

the tax rate is listed separately;

4) The date of the tax-making Faktur Simple.

The number 18 ...

PRESIDENT

REPUBLIC OF INDONESIA

-34-

Figures 18

Article 14

Verse (1)

Tax Fakes may only be made by Businessman Taxable. The ban

makes Tax Fakes by non-Taxable Employers intended to

protect buyers from undue tax.

Verse (2)

Pretty clear

Number 19

The provisions of Section 15 that govern about the obligation report a tax calculation

by using the Time Notices Letter, deleted and moved in

The Law Number 6 Year 1983 on the General Terms and the Terms of Use

Taxation as amended by Law No. 9 of 1994.

Figure 20

The provisions of Section 16 that govern about the term of excess return

taxes, removed and transferred into Act Number 6 of 1983

on the General Terms and Taxation Way as it has been changed to

Law Number 9 of 1994.

Figures 21

Quite clear

Figures 22

Article 16A

paragraph (1)

In the case of the Employers Tax does the submission of Tax

or the submission of the Income Tax to the Tax collector Value Added,

then the Value Added Tax collector is obligated to collect, lease,

and report on the tax on which it is in charge. However, Employers Are

Taxes that do the handing out of Tax Goods or the submission of the Services

Hit Tax to the Value Tax Revenue remains obligated

to report the tax levied by the collector Value-added Tax.

Verse (2) ...

PRESIDENT

REPUBLIC OF INDONESIA

-35-

Verse (2)

Quite clear

Article 16 B

Verse (1)

One of the principles that needs to be firmly held in the Act

taxation is enforced and published by the same treatment

against all Taxes or against cases in the field

taxation which is in fact equal to the provisions

applicable laws. Therefore any ease in the field

taxation if absolutely necessary should refer to the rules above and

needs to be guarded so that in its application does not deviate from intent and

the purpose of the given is ease It is.

The purpose and purpose of which it is given is the ease of its nature, especially for

the successful sectors of economic activity are high on the scale

national.

Ease of taxation set out in this section is provided limited to:

1. Drive export that is a national priority in the Bound Region

and the Production Entreport for Export Purpose (EPTE) or any other region

within the Pabean Region is set up specifically for that intent;

2. Accommodate possible agreements with other countries or countries

in the field of commerce and investment.

Verse (2)

The special treatment of Value Added Value Tax but

not levied it is interpreted to mean that the Input Tax relating to

the submission of the Tax and/or the Income Tax gets

the special treatment is intended to remain credited, thus the Tax

A fixed Value Added. $but not levied.

Example:

Employers "A" Tax "A" is producing the Tax Goods that got

the facility from the State, which is the value-added Value Tax

the transfer of the Goods to the Tax was not picked up forever (not just

adjourn.

For ...

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REPUBLIC OF INDONESIA

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To produce The Goods, Employers Are Tax "A"

using the Taxable Goods and/or Tax Hitters as material

defaults, auxiliary materials, capital goods or other cost components.

At the time of purchase of any other Tax and/or Services Tax,

The Employers Tax "A" paid the Value Added Tax to

Employers with Taxes selling or handing out Tax Goods or

Income Tax Services That.

If the Value Added Tax is paid by the Employers Tax "A"

to the Supplier Taxable Tax is the Input Tax

which can be credited with the Output Tax, then the Input Tax fixed

may be credited with the Output Tax, although the Output Tax

nihil for enjoying the Value Added Tax facility is not levied from

States under the terms as referred to in paragraph (1).

Verse (3)

In contrast to the terms of the paragraph (2), the presence of special treatment

exemption from the Value Added Tax charge resulted in not

the Output Tax, so the Input Tax with regard to

the submission of Tax and/or Taxable Services acquiring

the release is not credited.

Example:

Employers are Tax "B" producing the Tax Goods that got

the facility from the State, namely for the submission of the Tax Hit

was released from the Value Added Tax charge.

To produce The Goods of the Tax, Taxable "B"

using other Tax and/or Tax Services as materials

default, auxiliary materials, capital goods or as other cost components.

On the purchase time Other Taxable goods and/or Taxable Services,

Employers With Tax "B" pay the Value Added Tax to

The Taxable Tax who sells or surrenes the Tax Goods or

The Income Tax Service.

Though ...

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REPUBLIC OF INDONESIA

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Although the Value-added Income Tax is Income Tax

"B" to Employers Tax is Taxes

Input that can be credited, however, because there is no Output Tax

since the release of the facility is exempt from the tax imposition as

referred to in paragraph (1), then the Input Tax becomes unusable

is credited.

Section 16C

The self-building activities performed not in the enterprise environment

or work, are charged with the Value Added Tax with consideration

as follows:

1) as an attempt to prevent tax avoidance

Additional Value;

2) to provide equal treatment and to meet the sense of justice

between the parties that purchase the building from Real Estate Employers or who

submit building building to the tamper with the party

build itself.

Thus, this provision is not intended to charge Taxes

Peradditions The value of all the building activities itself. In order to prevent

tax imposition on low-income public consumption,

then set to prevent the imposition of the Tax

Valuation of Value for self-building activities by the people who are not able to provide a tax.

low-income.

Article 16D

The rosy of machines, buildings, equipment, furniture or other activates that

the original purpose is not to be sold by the Employers for Tax,

taxed To the extent that the Tax

Additional Value Added at the time of its use, as per the provisions

This Act, it can be credited.

Thus, the submission of such assets is not taxed if

The Value Added Tax is paid at the time of its exchange. cannot

be credited under the provisions of this Act, unless otherwise

may be accredited that the Value Added Tax is due to evidence

The crediting does not meet the administrative requirements, for example Invoice

The case is not fully filled in accordance with the terms as intended

in Article 13 of the paragraph (5).

Number 23 ...

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REPUBLIC OF INDONESIA

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Figures 23

Article 17

Quite clear

Article II

The letter a

Facility is a delay of the Value Added Tax payment And Taxes

Sales of the Mewah Goods which have been granted prior to the effective

Act, can remain enjoyed by the Employers until the

expiration of the delay period. For legal certainty there needs to be a

limitation of the slowest ending of December 31, 1999.

The letter b

The provisions of the Value Added Tax and Sales Tax

of the Mewah Goods are specifically regulated in the Contract for Results,

Contract of the Works, or the partnership agreement of the company mining which

still applies at the time of this Act, stated to remain in effect

up to the Contracts for the Results, Works Contract, or cooperation agreement

The mining enterprise is terminated.

Thus, all provisions set out in the Act are new

applies to contracts for the Results, Works Contract, or agreements

mining enterprise cooperation made after it expires

This Act.

Section III

Quite clear

Article IV

Clear enough

ADDITIONAL SHEET REPUBLIC OF INDONESIA NUMBER 3568