Type of Goods Not Subject to VAT

1. Returns the result of mining or drilling taken directly from the source, including:
a. Crude oil;
b. Natural gas;
c. Geothermal;
d. Sand and gravel;
e. Coal before being processed into coal briquettes; and
f. Tin ore, iron ore, gold ore, copper ore, nickel ore, ore, silver and bauxite ore.
g. Returns the result of mining and other drilling taken directly from the source.

2. Basic needs goods urgently needed by the people at large, namely:
a. All kinds of rice and grains, like white rice, red rice, black glutinous rice or glutinous rice is white in the form:
- Rice Crusted (paddy or rough) than for seeds;
- Ground;
- Rice semi milled or wholly milled, milled, polished, glazed or not;
- Rice in the rupture;
- Groats (groats) from rice.
b. All kinds of corn, such as white corn, yellow corn, red or yellow corn popcorn (popcorn), in the form:
- Corn that has been peeled or not / corn cobs and seed corn / maize loose maize;
- Miner (groats) / rice corn, all still in the form of granules.
c. Sago, in the form:
- Sago Pith;
- Flour, meal and powder of sago.
d. All types of soy, like soy and white, green soybeans, yellow soybeans or black soybeans in the form of broken or intact;
e. iodized salt whether or not iodium include:
- Table salt;
- Salt in bulk form or packaged 50 kg or more, with 94.7% content of Na CL
(Dry basis).

3. Food and beverages served in hotels, restaurants, restaurants, shops, and the like, including good food and drink consumed at the place or not; not including food and beverages to be delivered by a catering business or catering business.

4. Money, gold and securities.

Value Added Tax (VAT)

Value Added Tax (VAT) tax is imposed on:

1. Supply of Taxable Goods in the Customs Area conducted by the Firm;
2. Taxable Goods Imports;
3. Rendering of Taxable Services within the Customs Area conducted by the Firm;
4. Utilization of intangible Taxable Goods from outside the Customs Area within the Region. Customs;
5. Utilization of Taxable Services from outside the Customs Area within the Customs Area; or
6. Exports of Goods by a Taxable Taxable Person.
7. Intangible Tax export of the Taxable Person
8. Services exports Taxable Taxable Person.

Business Reporting In order to confirm the Taxable Person (PKP)
Employers who do:
- Delivery of Goods Taxable (BKP) and or renders Taxable Services (JKP) in the Customs area; or

- Perform export of Taxable Goods,

- Small Employers who choose to be confirmed as Taxable Person, shall report his business on the local tax office to be confirmed as Taxable Person (PKP), and shall withhold and report value added tax (VAT) and Sales Tax on Luxury Goods (Sales Tax ), which has accrued.

Taxable Person (PKP)
Taxable Person (PKP) is a businessman who did supply of Taxable Goods and or delivery services taxable income that is taxed under Act Number 42 of 2009.

Small Entrepreneur
Small employers exempted from the obligation to wear / collect VAT on supply of Taxable Goods (BKP) and or Taxable Services (JKP), so no need to report his business to be confirmed as Taxable Person, unless the Small Firm chooses to be confirmed as Taxable Person, then VAT Act is fully applicable for the small entrepreneur. Small entrepreneurs are entrepreneurs who for one year the delivery of books or JKP BKP and with a total gross turnover or gross receipts of not more than Rp. 600,000,000.00 (Six hundred million rupiahs).

State Fiscal

State Fiscal hereinafter referred to as the FLN is the Income Tax shall be paid by individual taxpayers in the country who will be off to foreign countries in accordance with taxation legislation.

1. Matters relating to fiscal

1. Individual taxpayers in the country who do not have a TIN and has been aged 21 (twenty one) years off to foreign countries will be obliged to pay the FLN.
2. Including an individual taxpayer is a wife or husband, blood relatives and family members related by marriage within the lineage straight and foster child to be borne by taxpayers and is fully recognized by the taxpayer on the basis of supporting documents and applicable law.
3. FLN payment by an individual taxpayer in the country who will be off to foreign countries by using Signs Fiscal Proof of Payment of Foreign Affairs. (TBPFLN).
4. TBFLN mandatory redemption at:
   Banks appointed by the Regional Office or Head of the KPP as payee FLN; certain UPFLN can receive payment if at airports or sea ports of departure to foreign countries where there are no payee bank, or other place specified by the Director General of Taxation.
5. FLN paid individual taxpayers in the country who will be off to foreign countries is an installment payment of Income Tax.
6. Including income tax installment is paid on behalf of the FLN is an individual taxpayer in the country.
7. Income Tax Installment payments can be credited against income tax payable at the end of the year after the taxpayer has a tax ID.
8. An individual who has settled payment FLN, for any reason to cancel his departure abroad can request the payment.

2. Overseas Fiscal tariffs are:
a. Rp. 2.500.000, - (two million five hundred thousand rupiah) for each trip by using
aircraft;
b. Rp.1.000.000, - (one million rupiah), for each trip by using a ship

3. Exclusion of Foreign Affairs Fiscal

Private people are starting to overseas will be excluded from payment of the FLN in the following manner:
- Immediate release, given by the officials of Directorate General of Tax authorities;
- Liberation through the provision of Fiskai Free Certificate of Foreign Affairs (SKBFLN) issued by the State Fiscal Unit (UPFLN) DGT.

Liberation Jump:

1. A foreigner who does not reside in Indonesia or residing in Indonesia for not more than 183 (one hundred and eighty three) days within any 12 (twelve) months, by showing a tourist visa or a visa to stop.

2. Officials of diplomatic and consular representatives or other officials of foreign countries, including members of his family and those seconded to them, working on and living with them, as long as not a citizen of Indonesia and in Indonesia did not accept or earn a position or a job outside the country concerned and provide reciprocal treatment, indicating the diplomatic passport.

In terms of his departure to abroad in the framework of overseas placements, the exemption is given also to the wives and children who are family members who are not yet 25 years old, unmarried, has no income, is still a dependent and live together in the area of accreditation in accordance with provisions of Article 4 letter b of figure (2) the Minister of Foreign Affairs No. SP/993/PD/XI/72 dated June 12, 1972.

3. Officials, representatives from international organizations that do not include income tax subjects based on the Ministry of Finance, including family members, as long as not a citizen of Indonesia and do not run the business, activities, or other work to earn income from Indonesia, by showing a passport Diplomatic.

In terms of his departure to abroad in the framework of overseas placements, the exemption is given also to the wives and children who are family members who are not yet 25 years old, unmarried, has no income, is still a dependent and live together in the area of accreditation in accordance with provisions of Article 4 letter b of figure (2) the Minister of Foreign Affairs No. SP/993/PD/XI/72 dated June 12, 1972.

4. Indonesian citizen who resides outside the country still has an official document as the country's population, by showing one of the official identification is still valid as a foreign resident the following:
a. Green Card;,
b. Identity Card;
c. Student Card;
d. Endorsements address abroad on passports by the Office of the Republic of Indonesia abroad;
e. Certificate from the Indonesian Embassy or representative office outside the Republic of Indonesia
country;
f. Formally written in the passport by the Immigration Office the local country.
Although someone has one of the official identification as a letter sd f, but in reality does not live in the country but lived in Indonesia for more than 183 (one hundred and eighty three) days within any 12 (twelve) months, concerned shall pay the FLN at the time of going off to foreign countries.
5. Pilgrimage undertaken by the competent authority, by showing a list of the names of the pilgrims by the leader of the group and executive officers of departure for the pilgrimage which the finance charged Pilgrimage Travel Costs (BPIH) by submitting a letter from the Ministry of Religious Affairs.
Exclusion does not apply to Special Pilgrims who operate Special BPIH charged.

6. An individual who travels cross-border region of the Republic of Indonesia through the land.

7. Indonesian citizen workers who will work abroad in the framework of the program delivery of Indonesian Workers (TKI), as they are not receiving income from sources within the country with
a. shows the Overseas Workers Card (KTKLN); or
b. gave approval of the Minister of Manpower and Transmigration.

8. Students from foreign countries who are in Indonesia in order to study the recommendation from the college where they study and do not receive or earn income from Indonesia, by submitting the waiver does not receive or earn income from Indonesia and letters of recommendation as a student or students of the college leadership schools concerned. Exemption does not apply to wives and children and other family members.

9. Foreigners who are in Indonesia and did not receive or earn income from Indonesia who carry out:
a. research in the field of science and culture under the coordination of relevant government agencies;
b. technical cooperation program with the State Secretariat approval; and
c. duties as members of religious missions and humanitarian missions under the coordination of relevant agencies,

by submitting the waiver does not receive or earn income from Indonesia and letters of recommendation or approval from the relevant authorities. Exclusion does not apply to wives and children and other family members.

10. Employment of foreign nationals, immigrants, who worked on the island of Batam, Bintan, Karimun Island, as long as they have income tax withheld by the employer, to submit proof of deduction of Income Tax Article 21 or Article 26 which has been legalized by the Head of the Tax Office Primary Batam or Head Tax Office Pratama Tanjung Pinang or appointed officials.
Disabled or sick people who will seek treatment abroad at the expense of social organization, including one (one) of the companion, by submitting a letter of approval from the Ministry of Health or a representative.

11. Members of the mission of art, culture, mission, mission sports or religious missions representing the Government of the Republic of Indonesia to foreign countries, by submitting a letter of approval from the relevant minister or a representative with the following conditions:

a. Minister of Culture and Tourism to the mission of the arts and cultures of the mission;
b. Minister of Youth and Sport for sport's mission;
c. Minister of Religion for the religious mission;
Exclusion does not apply to wives and children and other family members of members of the mission.

12th. Students or students who aged 21 (twenty one) years old who will study abroad in the framework of the official program of exchange students or students who organized government or a foreign entity with the approval of the minister concerned.

13. Students or students who are exempt from the obligation to repay the FLN is:
a. Civil Servants (PNS) or a member of the Indonesian National Army (TNI) and members of the Police of the Republic of Indonesia
(INP), which is equipped with service passports and letters of assignment or official travel;
b. Students or student exchanges within the framework of the official program of the student or student
hosted by the Government or Foreign Body with the approval of the Minister of National Education;

Exclusion does not apply to wives and children and other family members

Procedures for exemption from the obligation to repay the FLN is as follows:
1. for individual taxpayers in the country aged 21 (twenty one) years or more is provided through TIN validation checks by the Directorate General of Taxation UPFLN on duty at the airport or sea port of departure to foreign countries along NPWPtersebut been registered for at least 3 (three ) days before the day of departure.

2. For mandatory tax that does not have their own TIN, TIN validation checks are provided through compulsory tax that provides fully and dependents
a. Copy of Family Card, and / or
b. Took notice of parents who do not fully registered in the Family card by an individual who has a TIN by the Directorate General of Taxation UPFLN who served in airport or sea port of departure out of the country along the TIN has been registered for at least 3 (three) days sbelum day of departure .

3. for the number one s.d. figures 7a UPFLN provided directly by the Directorate General of Taxation on duty at the airport or sea port of departure to foreign countries, including individual taxpayers in the country aged less than 21 (twenty one) years.

4. for the number 7 letter b s.d. figure 13 is provided through the issuance UPFLN SKBFLN by Directorate General of Taxes at the airport or sea port of departure to foreign countries or KPP which manages the FLN or elsewhere as determined by the Director General of Taxation.

Income tax on Land Rental Building

Understanding Derived from the income received or accrued by the individual or entity from the rental of land or buildings and land, houses, flats, apartments, condominiums, office buildings, home offices, shops, stores, warehouses and industry, the income tax payable shall be final .

Objects and Tariff rental income from land and or buildings subject to final income tax of 10% (ten percent) from the gross rental value of land and / or buildings. The definition of the gross rental value is all amounts paid or payable by the tenant with a jug and in whatever form relating to land and / or leased buildings, including maintenance costs, maintenance costs, security costs, other facility fees and "service charges "both of which the agreement is made separately or together.

Witholding tax
withold income tax from the income received from rental of land and / or buildings are:

1. Tenants are government agencies, corporate tax subjects, in the country, organizing activities, permanent establishments, joint operations, perwakilian other overseas companies and individuals are determined by the Director General of Taxes, then the income tax payable shall be deducted by the tenant and the tenant is obliged to provide pieces of evidence to the rent, or who receive income;
2. Tenant is an individual or not the subject of Income Tax other than mentioned in para 1 above, the income tax payable shall be paid solely by lessors

When payable, the Deposit, and Reporting

1. Currently payable
   Tax on income from leasing land and / or building at the time of payment owed or become due rent.
2. Paying and Reporting
   - In the case of income tax owed must be repaid through deductions from the tenants, deposit to the bank and post office no later than December 10 next month after months of rental payments or become due by using the Tax Payment (SSP)

For reporting and withholding payment being made to the Tax Office no later than the date 20 months after the month berikutny or become due lease payments using Tax Income Tax Return Article 4 paragraph (2)

- In the case of income tax owed must be paid solely by the lease, the lessor must deposit income tax payable to the collecting bank or Post Office no later than December 15 next month after months of rental payments or become due by using the Tax Payment (SSP)

For reporting the payment being made to the Tax Office no later than December 20 next month after the month or become due lease payments using Tax Income Tax Return Article 4 paragraph (2)

Income taxes arising from the Prize and Awards

Understanding

• Sweepstakes prize is a prize with your name and in whatever form provided by the lottery.
• Prizes or contest awards prizes or awards are provided through a race or contest dexterity.
• Gifts in relation to employment, services and other activities is a gift with the name and in whatever form is given in relation to employment, services and activities performed by the gift recipient.
• Awards are benefits granted in connection with the achievement of certain activities.
• witholding tax
  witholding tax is:
  - Organizer of the lottery;
  - Giver of gifts

Fare

• Raffle prizes subject to income tax amounted to 25% (twenty five percent) of total gross market value of prizes or gifts in kind and shall be final.
• Prizes or awards, competitions, awards and prizes in connection with jobs, services and other activities, subject to income tax with the following conditions:

1. subject to corporate income tax rate for Article 21 Article 17 Income Tax Act, if the individual taxpayer and the recipient of the Interior.
2. subject to income tax under Article 26 amounting to 20% (twenty percent) and the finals of the gross amount by taking into account provisions of the Double Taxation Avoidance Agreement is valid, if the recipient of Foreign Taxpayers other than PE.
3. subject to income tax under Article 23 amounting to 15% (fifteen percent) of total gross income, if the taxpayer recipient agencies, including PE.

When payable, the Deposit, and Reporting

1. Currently payable
   - Income tax on prizes and awards outstanding at the end of the month or the payment of prizes handed depending on the events that occurred earlier.
   - Income tax withheld by the provider (prizes and awards) before prizes or awards given to the beneficiary.
   - The organizer shall make and give proof of income tax withholding on prize or Sweepstakes, dual 3:
   - Sheets to-one for a gift recipient (the taxpayer);
   - Sheets to-2 to the Tax Office;
   - 3rd sheet for Organizers
   
2. Paying and Reporting
   Organizers sweepstakes or award shall:
   - Have paid the tax to be cut by using the Tax Payment into bank or Post Office Perception later than the 10th calendar month following the month when the taxes become due (collectively).
   - Lodges (SPT) period to the Tax Office where the collector is registered not later than the date 20 (twenty) next month after paying or handing over the lottery prize.

Other
Not included in the definition of prizes and awards is the gift tax imposed directly in the sale of goods or services provided to all buyers along or drawn and the final consumer without a gift is received directly by final consumers when purchasing goods or jacket