The MoF has issued Regulation No. 96/PMK.03/2021 dated 22 July 2021 as the Amendment of MoF Regulation No. 35/PMK.010/2017 (“PMK-35”) and MoF Regulation No. 86/PMK.010/2019 (“PMK-86”) concerning the Determination of Taxable Goods subject to Sales Tax on Luxury Goods other than Motorized Vehicles and Procedures for Exemption from the Imposition of Sales Tax on Luxury Goods (PPnBM).

The main points of this regulations are:

1. Under the old regulation i.e. PMK-86, the PPnBM only applied to luxury apartments, town houses or other similar types with a value greater than IDR 30 billion. However, the new regulation expands this to other goods such as aircraft, firearms, cruise ships and yachts.  Details of description of luxury goods are listed in first attachment of PMK-96.
2. Types of Taxable Goods classified as luxury other than motor vehicles subject to PPnBM are set at rates of 20%, 40%, 50%, or 75%.
3. The PPnBM is exempted on the import or delivery of:
   • firearm bullets and/or other firearm ammunition for state purposes;
   • aircraft with drive power for state purposes or commercial air transportation;
   • firearms and/or other firearms for state purposes;
   • cruise ships, excursion ships, and/or similar vessels that are primarily designed for the  transportation of people, ferries of all types and/or yachts for the benefit of the state or public transportation; and
   • yachts for tourism businesses.
4. The above exception (points a until d above) is granted to the Taxpayer without having an exemption certificate of PPnBM (SKB PPnBM) as long as the goods have already obtained facility of the VAT exempted or VAT not collected. Otherwise, the taxpayer should obtain the SKB PPnBM from the tax office to get the exemption.
5. To obtain SKB PPnBM, the Taxpayer should submit an application together with the required supporting documents to the Directorate General of Taxation (DGT) through the DGT website or website that is integrated with the DGT system.

PMK-96 became effective on 26 July 2021.