WORKING GROUP II

ON ADMINISTRATION INDONESIA – UNITED NATIONS CONSULTATIVE FORUM

(IUNCF)

PROCEDURE FOR THE EXEMPTION OF IMPORT DUTIES AND TAXES

Application letter Appendix II Form of PMK No. 148/KMK.04/2015

(for goods/equipments for technical cooperation project)

.

Bureau for Foreign Technical

Cooperation (KTLN)

UN Body Customs and

Excise Office of Port/Airport

Dit. Fasilitas

4

PROCEDURE FOR TAX FACILITY

Application letter Copy of passport/ID Card

UN Body

Bureau for Foreign Technical

Cooperation (KTLN)

Duty-free Shop

Directorate of Customs Facility, Directorate General of Customs and Excise (DJBC)

1. What is the mechanism of personal effect importation for UN Body foreign workers?

For personal effect, the import duty exemption can be provided no later than 6 (six) months since the date of permit issuance.

2. In that period of 6 (six) months, can the importation of personal effect be done for multiple times?

Yes, the importation of UN Body foreign workers’ personal effect can be done several times within the period of 6 months with consideration of reasonableness.

3. Who are entitled to receive duty-free control card facility?

Duty-free control card facility can only be given to officials/foreign workers of UN Body who have diplomatic immunity along with their families.

4. How long does it take for the issuance?

The time of recommendation issuance for duty-free card facility in Bureau for Foreign Technical Cooperation is 5 days since the document is received by the Bureau for Foreign Technical Cooperation counter in complete and correct condition with no error in the form filling.

5. Is there a limit on the amount of duty exemption for the purchase of taxable goods (tobacco products and beverages containing ethyl alcohol) in duty-free shops?

Yes, in accordance with the Ministry of Finance Regulation (PMK) 109/pmk.04/2010 and PMK 37/PMK.04/2013, duty exemption can be given on the purchase of taxable goods in duty-free shops for: 10 liters of beverage containing ethyl alcohol per adult per month; and/or 300 sticks of cigarettes or 100 sticks of cigars or 500 gram of sliced tobacco/other tobacco products.

6. Are UN bodies and their officials/foreign workers can be exempted from duties for the importation of beverages containing ethyl alcohol and tobacco products?

No. PMK 109/PMK.04/2010 regulates that the duty exemption for taxable goods is only given for the purchase in Duty-free Shops.

7. For customs and excise duty exemption application, which official is allowed to sign the application letter?

Application for goods and vehicles customs and excise duty exemption must be signed by the Head of the International Agency. In the event of Head of the International Agency is absent and unable to sign the application for import duty exemption, the application must be signed by an appointed Official that is proven by a delegation of authority or appointment diplomatic note (in accordance with Article 6 of Directorate General Customs and Excise Regulation No. PER-24/BC/2016)

VEHICLE FACILITY

IMPORTED COMPLETELY BUILT UP (CBU) MOTOR VEHICLES

2

Dit. Fasilitas

4

1 3

Pemprov DKI 5

Purchase application letter Proforma Invoice

Declaration of Not Owning a Vehicle For Offices: Number of Vehicles Owned Data

UN Body

Bureau for Foreign Technical

Cooperation (KTLN)

Directorate of Customs Facility, Directorate General of Customs and Excise (DJBC)

Regional Taxation and Retribution Agency,

Provincial Government of Jakarta

Application letter for vehicle purchase realization, signed by the Chief Representative or appointed Replacement Official

Appendix II Form of PMK No. 148/KMK.04/2015 Copy of Official Memo of Approval for Motor Vehicle Purchase Principle

taxes to the BPRD Jakarta

vehicle import duty

VEHICLE FACILITY

LOCAL COMPLETELY KNOCK DOWN (CKD) AND COMPLETELY BUILT UP (CBU) MOTOR VEHICLES

2

4

1 3

Pemprov DKI 5

Purchase application letter Proforma Invoice

Declaration of Not Owning a Vehicle For offices: Number of vehicles owned data

Bureau for Foreign Technical

Cooperation (KTLN)

Regional Taxation and Retribution Agency,

Provincial Government of Jakarta

UN Body

Foreign Corporate and Individual (BADORA)

Tax Service Office

Application letter for vehicle purchase realization, signed by the Chief Representative or appointed Replacement Official

Copy of Official Memo of Approval for Motor Vehicle Purchase Principle

KPP BADORA

exemption to BPRD Jakarta

value-added tax and luxury goods sales tax exemption

VEHICLE FACILITY

CORPS DIPLOMATIQUE (CD) LICENSE PLATE NUMBER FACILITY

1 2 3

Directorate of Diplomatic Facilities

4

Application letter

Purchase Invoice Latest Vehicle Registration Certificate (STNK) (for extension) Copy of Foreign Workers’ Import Permit (SP) (for the officials’ vehicles)

, Ministry of Foreign Affairs

Traffic Corps

UN Body

Bureau for Foreign

Technical Cooperation of

Ministry of State

Secretariat

The National Police Traffic Corps issues a CD License Plate Number Approval

HANDOVER OF PROJECT VEHICLES PROJECT VEHICLES AFTER 5 YEARS

PROJECT VEHICLES BEFORE 5 YEARS

1. What are the provisions concerning the vehicle quota for UN Bodies which receive tax exemption facility? Local CKD and CBU Vehicles: UN Bodies with the number of officials ≥ 5 persons, are entitled to receive

quota of 6 (six) vehicles UN Bodies with the number of officials ≤ 5 persons, are entitled to receive

vehicle quota in accordance with the number of officials Foreign official/worker who is assigned for at least 1 (one) year is entitled

to receive quota of 1 (one) unit of vehicle For project needs, it is adjusted according to the requirements written in

project documents

Imported CBU Vehicles:

UN Bodies Office receive 2 (two) unit of vehicles Chief Representative and Deputy-level Official receive 1 (one) unit of

CBU (imported or local) vehicle or CKD For project needs, the amount and specification are adjusted according

to the requirements written in project documents that have been agreed upon by UN Bodies and the Indonesian Government.

2. How long is the issuance process of import duty and vehicle tax exemption

recommendation letter?

The issuance process of import duty and vehicle tax exemption recommendation later takes 1 (one) month at maximum after the file is declared to be complete with no error in the documents as well as the application letter.

3. How is the process of vehicle handover from UN Bodies to the third-party?

a. For imported CBU vehicle and local CBU/CKD vehicle that receive import duties and taxes exemption facility based on Ministry of Finance Decree 89/KMK.04/2002 (bought before the enforcement of Minister of Finance Regulation148/PMK.04/2015) there are two options: Handed over to the third-party where the third-party pays for all the

import duties and taxes obligation. Handed over to the fellow facility recipient (other international agency

that is included in Ministry of Finance Regulation148/PMK.04/2015; representative of foreign country; representative official of foreign country/other international agency).

b. For local CBU and CKD that is bought after 2015 (with value-added tax and or luxury goods sales tax exemption facility in accordance with Minister of Finance Regulation162/PMK.03/2015) the following provisions apply: Vehicle that has been used for 4 years can be handed over to

another party without the imposition of value-added tax and luxury goods sales tax, however the application for sales approval and the revocation of CD License Plate Number are still required.

Vehicle that has been used for less than 4 years, if it is handed over to another party then it must pay all value-added tax and/or luxury goods sales tax that have been exempted and apply for sales approval as well as revocation of CD License Plate Number.

4. What are the provisions for the issuance of CD License Plate Number?

Big CD License Plate Number is given to office-owned passenger vehicle and for UN Bodies officials who have diplomatic status.

Small CD License Plate Number is given to the passenger vehicle owned by foreign workers or two-wheeled vehicle for office needs.

Project vehicles of UN Bodies cannot use CD License Plate Number.

5. Can UN Bodies and foreign workers import used vehicles to Indonesia? What are the requirements?

UN Bodies can import used vehicles as long as the quota for vehicle import duty exemption is still available. Not all foreign workers of UN Bodies are entitled to import vehicles whether it is new or used. Only the Head of UN Bodies and Deputy-level officials are entitled to import vehicles.

6. After the service term of a foreign worker is over, what must be done to

the imported car? After the utilization is over, the tax obligation on the vehicle that has been exempted from import duties and taxes must be fulfilled, the methods are: (1) Re-exported; or (2) Handover; or (3) Destruction. Vehicle handover can be done to the fellow facility recipient (Foreign Country Representative and other International Agency along with its officials) or to the third-party that has no facility (individual Indonesian citizen, corporation or legal entity). In the event of handover to the third-party that receives no facility, then all exempted import duties and taxed must be paid by the buyer.

7. Can the duty-free facility be given to two-wheeled vehicle? If yes, how is

the procedure? If not, how to purchase two-wheeled vehicle by UN Bodies as well as foreign workers? Import duty exemption can be given to import of two-wheeled vehicle as long as the international agency still has the imported vehicle quota. However, for the local purchase of two-wheeled vehicle, value-added tax and luxury goods sales tax exemption facility cannot be given considering the provision of Article 2 subsection (4) Ministry of Finance Regulation No. 162/PMK.03/2014, which states that value-added tax and or luxury goods sales tax exemption can only be given to four-wheeled vehicles. Therefore, the purchase of two-wheeled vehicle can be done through normal buying and selling process without any tax exemption facility.

8. How is the process and what are the requirements for the issuance of Vehicle

Ownership Document (BPKB) and license plate number at the Police?

For the issuance of License Plate Number, refer to the vehicle facility flowchart above. In connection with the enforcement of Governor Regulation No.101 of 2017, International Agencies are required to apply for Vehicle Ownership Tax (PKB) and Vehicle-Ownership Transfer Fee (BBNKB) Exemption to the Regional Taxation and Retribution Agency (BPRD) of Jakarta through the recommendation from the Bureau for Foreign Technical Cooperation of Ministry of State Secretariat. That is for every application of vehicle import duty exemption or application of value-added tax and or luxury goods sales tax exemption for the local vehicle purchase, and in every STNK extension application. For the Vehicle Ownership Document issuance, Regional Police can be contacted after the issuance of STNK. Vehicle Ownership Document issuance is not done through the recommendation from the Ministry of State Secretariat.

VALUE-ADDED TAX AND OR LUXURY GOODS SALES TAX EXEMPTION FACILITY

1 2

Application letter Invoice (for the exemption/Tax Invoice (for restitution)) Agreement/contract Copy of Import Permit (SP) (for foreign workers’ goods/equipments)

to KPP Badora

KPP Badora issues an Exemption Certificate (SKB)/Rejection Letter for the application of value-added tax and luxury goods sales tax exemption at the latest within 30 days

UN Body

Bureau for Foreign Technical

Cooperation of the Ministry of

State Secretariat

3

Foreign Corporate and

Individual Tax Service Office

(KPP BADORA)

1. Is there a time period provision for the submission of Exemption Certificate application or value-added tax and/or luxury goods sales tax restitution? Yes. Submission of Exemption Certificate application is conducted before the handover of taxable goods/services. Meanwhile, the restitution of value-added tax and/or luxury goods sales tax can be conducted after the handover of taxable goods/services within the one year period since the transaction takes place.

2. Can UN Bodies apply for value-added tax and/or luxury goods sales tax

exemption after all the transactions are done? Not all transactions. Minimum Purchase Requirement (MPR) Provision for the transaction of

at least USD 200 in a single tax invoice. Therefore the transaction value (including the value-added tax and/or luxury goods sales tax) below that value will not be processed for the recommendation of value-added tax and/or luxury goods sales tax exemption.

Daily necessities products that are purchased in grocery store cannot be recommended for value-added tax and/or luxury goods sales tax exemption.

Document handling services for documents related to licenses and formalities cannot be recommended for value-added tax and/or luxury goods sales tax exemption.

Procurement of goods/services that is not related to the technical cooperation between the Government of the Republic of Indonesia and UN Bodies cannot be recommended for value-added tax and/or luxury goods sales tax exemption.

3. How long is the restitution and tax exemption process? In the event of restitution, how long does it take to return the money? In accordance with Article 10 subsection (2) of Ministry of Finance Regulation

No. 162/PMK.03/2014 and Article 6 subsection (2) of Ministry of Finance Regulation No. 161/PMK.03/2014, Head of Foreign Corporate and Individual Tax Service Office (KPP BADORA) must make a decision at the latest 30 (thirty) days since the application is received completely.

In accordance with Article 11 subsection (1) of Ministry of Finance Regulation No. 162/PMK.03/2014 and Article 7 subsection (1) of that Ministry of Finance Regulation, if the time period as referred to in Article 6 subsection (2) has passed and the Head of KPP BADORA does not make any decision, the restitution application is considered to be approved.

For the restitution, the time needed for restitution is the authority of KPP BADORA by taking into account the availability of restitution funds.

4. How is the arrangement of the local taxes of DKI Jakarta Province for UN

Bodies? Concerning the local taxes, UN Bodies receive exemption facility for:

(i) Vehicle ownership tax

(ii) Vehicle-ownership transfer fee

(iii) Advertisement tax

(iv) Acquisition duty of right on land and building

(v) Land and building tax of urban and rural area

and do not receive exemption facility for:

(i) Hotel tax

(ii) Restauran tax

(iii) Parking tax

(iv) Street lighting tax

1

a Clearing

2 b

IMMIGRATION AND CONSULAR FACILITY

OFFICE OFFICIAL/STAFF

Application letter

recommendation request letter for foreign workers who are assigned in special areas

Bureau for Foreign Technical Cooperation,

Ministry of State Secretariat State Intelligence

Agency (BIN) Strategic Intelligence

Agency (BAIS)

FOREIGN WORKERS OF PROJECTS

1 2

3

4 2

Application letter

where

the project is held

special areas

Bureau for Foreign Technical Cooperation,

Ministry of State Secretariat

Partner Ministry/ Agency

State Intelligence Agency (BIN)

Strategic Intelligence Agency (BAIS)

IMMIGRATION AND CONSULAR FACILITY

SERVICE STAY PERMIT FOR FOREIGN WORKERS OF UN BODIES

1 2

UN Body

3

Application letter

to the Directorate General of Protocol and Consular Affairs, Ministry of Foreign Affairs

Bureau for Foreign Technical Cooperation,

Ministry of State Secretariat

Directorate General of Protocol and Consular

Affairs, Ministry of Foreign Affairs

Directorate General of Protocol and Consular Affairs of Ministry of Foreign AffairsBadan PBB foreign workers of UN Bodies

WORK PERMIT IN INDONESIA (IMTA) APPLICATION FOR FOREIGN WORKERS OF UN BODIES

1

2

Application letter

4x6 Photos (2 Pieces)

1. How is the visa arrangement for Officials and Foreign Workers of UN Bodies? For officials and foreign workers of UN Bodies, both for those who have United Nations laissez-passer (UNLP) as well as those who have regular passport can be given a service visa facility.

2. How is the visa and stay permit arrangement for dependant?

According to Article 76 subsection (3) and Article 82 subsection (3) of Government Regulation No. 31 Tahun 2013 concerning the Implementing Regulation of Act No. 6 of 2011 concerning Immigration:

Service visa can be given to the husband or wife, and legitimate child(ren) at maximum of 25 (twenty five) years of age, single, unemployed, and become the dependent as well as follow the Foreign Citizen who owns service passport or other passport in performing non-diplomatic official duty.

Note: for a child (dependant) who is older than 25 years old with special needs can be facilitated using regular visa.

3. How long does it take for the issuance of Assignment Approval Letter (SP) and Official Memo?

Based on the Regulation of State Secretary Minister Number 17 of 2016 concerning Service Standard of Work Units in State Secretariat, the Assignment Approval Letter (SP) is issued 3 work days after the file is declared complete. Meanwhile, the Official Memo is issued 2 work days after the file is declared complete with no error.

4. Are the foreign workers of UN Bodies required to have Work Permit in

Indonesia (IMTA)? Based on the Ministry of Manpower Regulation Number 16 of 2015 concerning the Procedures to Employ Expatriates, foreign workers of UN Bodies are required to have IMTA but exempted from the Expatriate Placement Plan (RPTKA) and the imposition of Expatriate Utilization Fund (DP-TKA)

5. Are the foreign workers of UN Bodies required to have Indonesian Traveling

Permit (SKJ)? UN foreign workers should apply for SJK for the supervision of foreign workers in the region and it is submitted if they conduct activities outside the duty station in the region.

6. What are the provisions for visit to regions for officials and foreign workers of

UN Bodies? Ministry of Foreign Affairs has the Standard Operating Procedure

(SOP) which regulates the visits of UN Bodies officials/representatives to regions. One of the provisions in SOP is that the UN Body is required to notify the Directorate of Diplomatic Facilities and Directorate of Diplomatic Security concerning the visit plan. This is done to ensure the safety of UN Bodies officials/foreign workers and so that their presence in the region can be well utilized.

Ministry of Foreign Affairs Circular No. D/01253/05/2017/65 tanggal 8 Mei 2017 concerning the notification for all visits to the regions for Chief Representative and Staffs of UN Bodies is in line with the Ministry of Foreign Affairs Regulation.