General Provisions on Local Taxes and User Fees

On 16 June 2023, The Government issued Regulation No. 35 of 2023 (GR-35) concerning general provisions on local taxes and user fees.

The main points of this regulations are summarized as follows:

  • Local tax collection is divided into 2 (two) levels:
    1. Provincial tax; and
    2. District/City tax
  • Below is the comparison of Local tax collection:
    No Provincial tax District/City tax
    1 Vehicle Land and building
    2 Vehicle registration Billboard
    3 Heavy equipment Groundwater
    4 Surface water Fees on acquisition of land and building rights
    5 Fuel Specific Goods and Services
    6   Non-metallic Minerals and Rocks
  • User fee collection is divided into 3 (three) types:
    1. General services user fee;
    2. Business services user fee; and
    3. Specific license user fee
  • Below is the comparison of User fee collection:
    No General services Business services Specific license
    1 Health Grocery markets Building approval
    2 Cleaning Provision of place Using of Expatriate workers
    3 Parking Parking space Management of traditional mining
    4 Market Villa  
    5 Traffic Slaughterhouse  
    6   Port  
    7   Recreation, tourism, sport place  
    8   Crossing place  
    9   Local sales  
    10   Regional asset utilization  
  • The implementation of local taxes and user fee audit is as follows:
    1. The Regional Head or a designated official is authorized to conduct an audit to test compliance with fulfilment of tax and user fee obligations and other purposes in the context of implementing the provisions of laws and regulations regarding taxes and user fees.
    2. The audit is conducted to test the compliance of tax/user fee obligations in the event that:
      • The taxpayer submits an overpayment claim;
      • There is other information or concrete data used by the authority; and
      • Selective audit based on risk analysis
    3. .Audit for other purposes shall be conducted at least for:
      • Deemed of NPWPD (regional taxpayer number) approval;
      • Deemed of NPWPD revocation;
      • Settlement of taxpayer’s objection application;
      • Matching data and/or information tools; and/or
      • audit in the context of Tax Collection
how can we help you?

Contact us at the Consulting WP office nearest to you or submit a business inquiry online.

see our gallery

Looking for a First-Class Tax and Business Consultant?