{"id":44942,"date":"2016-01-11T13:47:10","date_gmt":"2016-01-11T06:47:10","guid":{"rendered":"https:\/\/setkab.go.id\/?p=44942"},"modified":"2016-01-14T14:02:32","modified_gmt":"2016-01-14T07:02:32","slug":"here-are-government-regulation-for-taxation-facilities-and-easiness-in-special-economic-zones","status":"publish","type":"post","link":"https:\/\/setkab.go.id\/en\/here-are-government-regulation-for-taxation-facilities-and-easiness-in-special-economic-zones\/","title":{"rendered":"Here are Government Regulation for Taxation Facilities and Easiness in Special Economic Zones"},"content":{"rendered":"
\"KEK\"

Here are Government Regulation for Taxation Facilities and Easiness in Special Economic Zones<\/p><\/div>\n

Considering to improve capital investment in the Special Economic Zones (KEK) which could support the national and regional economic development, as well as to provide more job opportunities, the Government is considering to provide facilities and easiness in the Special Economic Zones in a form of taxation, customs and excise, goods traffic, employment, immigration, land, permits and non-permits.<\/p>\n

Based on those points, President Joko \u0093Jokowi\u0094 Widodo on 21 December 2015 signed Government Regulation Number 96 of 2015 on the Facility and Easiness in Special Economic Zones.<\/p>\n

The Government Regulation states that facilities and easiness which are granted to Business Entities and Business Doers cover: a. taxation, customs and excise; b. goods traffic; c. employment; d. immigration; e. land; and f. permits and non-permits.<\/p>\n

<\/p>\n

Meanwhile, Business Entities provided by facilities and easiness in the Special Economic Zones cover: a. Business Entities whose main activities operate in the Special Economic Zones; and b. Business Entities which are the other activities besides main activities in the Special Economic Zones.<\/p>\n

\u0093Business Entities whose main activities operate in the Special Economic Zones as intended by Article 3 character a is determined by Special Economic Zones\u0092 National Board with consideration from related ministers or the head of Institution,\u0094 Article 4 Paragraph (1, 2) of the Government Regulation says.<\/p>\n

According to the Government Regulation, Business Entities and Business Doers are provided with<\/p>\n

taxation, customs and excise facilities including: a. Income tax; b. Value-Added Tax (PPN) and Luxury Goods Sales Taxes and\/or c. Customs and\/or excise.<\/p>\n

To get several facilities as intended by paragraph (1), Business Entities must meet several qualifications, among others: a. have the statement as a Business Entity to build and\/or manage the Special Economic Zones (KEK) from Provincial Government or Government at Regent\/City levels or Ministries\/Non-Ministerial Government\u0092s Institutions according to their authorities; b. have an agreement to build and\/or manage the Special Economic Zones (KEK) between Business Entities and Provincial Government, or Government at Regent\/City levels or Ministries\/Non-Ministerial Government\u0092s Institutions according to their authorities; and c. Make some certain border in the KEK\u0092s activities area.<\/p>\n

There are general conditions that need to be met, among others: a. considered as a domestic taxpayer entity; and b. has received an Investment Principle License from the KEK administrator.<\/p>\n

The Government Regulation asserted the new taxpayer entity to do new investment by using new investment plan for the amount exceeding Rp 1,000,000,000,000.00 (one trillion rupiah) and their business sectors are in production chain of KEK\u0092s major activities and provided with incentive on income tax reduction for the period at least 10 (ten) years and a period not exceeding 25 (twenty five) years after the commercial production and the investment value realization.<\/p>\n

For the new taxpayer entity which invest at least Rp 500,000,000.00 (five hundred billion rupiah) up to Rp 1,000,000,000,000.00 (one trillion rupiah) by using new investment plan and business sectors are in production chain of KEK\u0092s major activities and provided with incentive on income tax reduction for the period at least 5 (five) years and a period not exceeding 15 (fifteen) years after the commercial production and the investment value realization.<\/p>\n

For the new taxpayer entity which investing at least Rp 500,000,000.00 (five hundred billion rupiah) by using new investment plan; business sectors are in production chain major activities; located in KEK areas which are designated by the National Board, could be provided with incentive on income tax reduction for the period at least 5 (five) years and a period not exceeding 15 (fifteen) years after the commercial production and the investment value realization.<\/p>\n

\u0093The amount of income tax reduction as intended by paragraphs (1) and (2) is given 20% (twenty percent) at minimum and 100% (hundred\u00a0 percent) at maximum from the amount of income tax owed by the Business Entities,\u0094 Article 7 Paragraph (4) of the Government Regulation says.<\/p>\n

The Government Regulation also mentioned the importation of goods from Business Doers in KEK\u0092s areas: a. Other Business Doers in one KEK\u0092s area; b. Other Business Doers in other KEK\u0092s area; and d. Free Trade and Free Sea Port Areas are given the facilities, including: a. import duty exemption; b. customs exemption, as long as the goods are raw materials or supported materials in the making of finished goods that are not the subject to excise; and\/or c. goods that are not the subject to tax on Import.<\/p>\n

Furthermore, shops that are in the tourism area of KEK could participate in the scheme refund of Value-Added Tax to person who holds foreign passport as according to the provision of the Law on taxation.<\/p>\n

Meanwhile, the purchase of house in KEK area which includes in tourism major activities, are provided with: a. Luxury Goods Sales Taxes exemption; and b. Income Tax for Super Luxury Goods exemption.<\/p>\n

Regarding other Business Sector in KEK which are included in financial services area, they are provided with taxation, customs and excise facilities.<\/p>\n

Through the Government Regulation, the Government also encourages Regional Government to apply the reduction, facilitation, and exemption of regional tax and\/or regional retribution to the Business Entities and\/or Business Doers in KEK area according to the provision of the Law on regional taxation and retribution.<\/p>\n

Reduction on regional taxation and\/or retribution as intended is 50% (fifty percent) at minimum and 100% (hundred percent) at maximum, and it was regulated under a Regional Regulation.<\/p>\n

\u0093This Government Regulation shall come into effect since the date of its promulgation,\u0094 Article 87 of the Government Regulation Number 96 of 2015 which is promulgated by Minister of Law and Human Rights Yasonna H. Laoly on 28 December 2015 says. (Pusdatin\/<\/b>ES)<\/b> (RAS\/EP\/YM\/Naster)<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

Considering to improve capital investment in the Special Economic Zones (KEK) which could support the national and regional economic development, as well as to provide more job opportunities, the Government is considering to provide facilities and easiness in the Special Economic Zones in a form of taxation, customs and excise, goods traffic, employment, immigration, land, […]<\/p>\n","protected":false},"author":33,"featured_media":44607,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[77],"tags":[],"class_list":["post-44942","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"\nHere are Government Regulation for Taxation Facilities and Easiness in Special Economic Zones - Sekretariat Kabinet Republik Indonesia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/setkab.go.id\/en\/here-are-government-regulation-for-taxation-facilities-and-easiness-in-special-economic-zones\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Here are Government Regulation for Taxation Facilities and Easiness in Special Economic Zones - 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