OTHER TAX
7.1 Luxury-goods sales tax (LST)
Apart from the Value-Added Tax (VAT), certain items such as motor vehicles and luxury residences are liable to Luxury-Goods Sales Tax (LST) when imported or sold by the manufacturer to another entity, with rates currently varying from 10% to 95%.
7.2 Import Duty
Import duties are levied on imported goods based on rates ranging from 0% to 150% of the customs value. The customs value is determined at the cost, insurance, and freight (CIF) level.
|
Group |
Good |
Rate (%) |
|
Automobiles |
Passenger and commercial |
5 to 50 |
|
Automobile components |
Incompletely knocked down |
0 to 7.5 |
|
Part by part |
0 to 10 |
|
|
Vessels |
Ships, boats, and floating structures |
0 to 5 |
|
Aircraft |
Balloons, helicopters, aeroplanes, parachutes, and aircraft launching gear |
0 |
|
Electronic goods |
Camera, refrigerator, cellular phone, and others |
0 to 20 or IDR 21,450/minute |
|
Textile, textile products, and accessories |
Bags, footwear, harnesses, apparels, clothing accessories, etc. |
0 to 35 |
|
Beverages, ethyl alcohol, and alcoholic drinks |
Ethyl alcohol, juice, beer, wine, spirits, and other beverages |
5 to 150, or IDR 14,000/litre |
|
Essential oils and resinoids |
Odoriferous substances |
5 to 150 |
|
Agricultural products |
Animal and vegetable products |
0 to 20 or IDR 450/kg |
|
Furniture |
Bedding, mattresses, lamp and lighting fittings, and others |
0 to 20 |
|
Toys |
Toys, games and sport requisites, parts and accessories thereof |
5 to 20 |
|
Plastic |
Plastics and articles thereof |
0 to 25 |
|
Rubber |
Rubber and articles thereof |
0 to 15 |
|
Wood |
Wood and articles thereof |
0 to 25 |
|
Steel |
Steel and articles thereof |
0 to 20 |
|
Others |
Chemicals, pharmaceutical products, works of art, arms and ammunition, musical instruments, and others |
0 to 40 |
As part of its commitment to trade liberalization, the Indonesian government is progressively reducing import duty rates for most products. However, higher duty rates are retained to safeguard certain industries and goods deemed sensitive for security, social, and cultural reasons.
7.3 Duty relief/exemption/deferral
The Indonesian government provides duty relief, exemption, and deferral concessions to both foreign and domestic investors to encourage the growth of local and export industries. These concessions often complement other tax incentives, including VAT and income tax. Examples of such concessions include the Badan Koordinasi Penanaman Modal (BKPM) Masterlist, Bonded Zone, Bonded Warehouse, import duty exemptions and drawbacks for exports, Free Trade Zone (FTZ), Free Trade Area (FTA) agreements with multiple countries, Economic Partnership Agreements with several countries, MITA (main partners) lanes, and Authorised Economic Operator status. Additionally, entities engaged in research and development (R&D) activities may qualify for import duty and/or excise exemptions.
7.4 Stamp Duty
Stamp duty is a nominal fee, requiring a fixed payment of either IDR 10,000 on specific documents.
7.5 Public Housing Savings
The aim of public housing savings (Tabungan Perumahan Rakyat) is to accumulate and allocate sustainable, low-cost funds for long-term housing financing, aiming to fulfill the demand for decent and affordable housing among participants. Contributions to the scheme are made by both employees and employers, based on a specified percentage of wages (i.e., 0.5% for employers and 2.5% for employees, or 3% for self-employed individuals).
This program is applicable to employees and self-employed individuals who earn wages or rewards equal to or exceeding a minimum wage threshold and are either at least 20 years old or married at the time of registration. This includes both Indonesian citizens and expatriates holding valid working visas, provided they have been employed in Indonesia for a minimum of six months.
Employers and self-employed individuals failing to adhere to government regulations regarding contributions may face sanctions.
7.6 Regional Tax
Regional taxes encompass various levies and charges that corporate taxpayers may be obligated to pay. These rates vary, typically ranging from a maximum of 0.2% to 75% of diverse reference values established by the respective regional governments. Aside from PBB and BPHTB, the following are examples of regional taxes that could be applicable:
- Motor vehicle tax
- Motor vehicle ownership transfer fee
- Motor vehicle fuel tax
- Heavy equipment tax
- Surface water tax
- Cigarette tax
- Advertisement tax
- Non-metal and rock minerals tax
- Groundwater tax
- Swallow-nest tax
- Certain goods and services tax
